Permex Petroleum Reports Significant Revenue Decline, Operating Expenses Reduction, and Leadership Changes in Q2 2024 Financials

Permex Petroleum Corporation reported significant financial changes in its 10-Q filing for the three and six months ended March 31, 2024. Total revenues for the three months were $30.9 thousand, a sharp decline from $180.6 thousand in the same period of 2023. For the six months, revenues decreased to $84.0 thousand from $402.6 thousand year-over-year. The company attributed this decline primarily to reduced production levels, with net oil-equivalent production dropping to 6.04 barrels per day in Q2 2024 from 37.57 barrels per day in Q2 2023.

Operating expenses also decreased significantly, totaling $451.8 thousand for the three months ended March 31, 2024, compared to $1.3 million in the prior year. For the six-month period, operating expenses were $1.3 million, down from $2.9 million. This reduction in expenses contributed to a smaller loss from operations of $421.0 thousand for Q2 2024, compared to a loss of $1.1 million in Q2 2023. The net loss for the three months ended March 31, 2024, was $415.4 thousand, a notable improvement from the $1.1 million loss reported in the same quarter of the previous year. For the six months, the net loss was $1.2 million, down from $2.4 million in 2023.

As of March 31, 2024, the company’s total assets were $10.6 million, a decrease from $10.9 million as of September 30, 2023. Current assets also fell significantly to $86.5 thousand from $288.4 thousand, with cash reserves dwindling to $4.7 thousand from $82.7 thousand. The accumulated deficit increased to $13.4 million from $12.2 million.

Strategically, Permex Petroleum has faced challenges, including a cease trade order issued on April 16, 2024, due to unfiled financial statements, which halted trading until September 9, 2024. The company has been actively seeking financing, raising $1.4 million through convertible debentures, although it is currently in default. Management has expressed substantial doubt about the company's ability to continue operations without securing additional financing and is negotiating a debt restructuring plan.

The company has also undergone leadership changes, appointing Bradley Taillon as President and CEO on May 1, 2024, following the resignation of former CEO Mehran Ehsan. The company’s operational focus remains on the acquisition, development, and production of oil and gas properties in Texas and New Mexico, with plans to resume production from its Breedlove assets as capital allows.