# Permex Petroleum Corp > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Permex Petroleum Corp). ## Overview Permex Petroleum Corp is a U.S.-focused independent oil and gas company organized around the acquisition, development, and production of properties in the Permian Basin and other U.S. basins. Through its operating subsidiary, it holds working interests, royalty interests, and infrastructure tied to producing wells, shut-in wells, saltwater disposal, and water supply assets. ## Products & services • Oil and natural gas production • Lease acquisition and development • Well recompletions and re-entries • Secondary recovery and infill drilling • Saltwater disposal services • Water supply for field operations • Royalty interests in producing wells - **Oil and gas production** (55%) — Production of crude oil and natural gas from operated and royalty properties. - **Operator services and fees** (10%) — Fee-based services tied to operating or managing oilfield assets. - **Lease acquisition and development** (15%) — Acquisition and development of producing and undeveloped leases in U.S. basins. - **Well workovers and recompletions** (10%) — Re-entry, recompletion, and restoration of shut-in wells to production. - **Midstream field infrastructure** (10%) — Saltwater disposal and water supply assets supporting field operations. - Oil and natural gas production - Lease acquisition and development - Well recompletions and re-entries - Secondary recovery and infill drilling - Saltwater disposal services - Water supply for field operations - Royalty interests in producing wells ## Customers Permex sells produced oil and gas into commodity markets, so its direct buyers are typically purchasers and marketers of hydrocarbons rather than end consumers. It also earns fee revenue from operator services contracts, which suggests counterparties include other working-interest owners or field operators that need operating support. Its royalty interests generate revenue from producing wells without direct operating responsibility. - **Oil and gas purchasers** (primary) — Buy crude oil and natural gas production from Permex's operated wells and leases. - **Operator services counterparties** (secondary) — Pay fees for operating or field services under contract arrangements. - **Royalty interest revenue sources** (secondary) — Generate royalty income from third-party operated wells and permitted acreage. - **Working-interest partners** (secondary) — Share in development and operating economics across jointly held assets. - Oil and gas purchasers buying produced barrels and volumes - Commodity marketers and aggregators taking field production - Operator-contract counterparties paying service fees - Working-interest partners sharing field operating economics - Royalty interest counterparties tied to producing wells ## Geography Permex is headquartered in the United States but was incorporated in British Columbia, Canada, and its operating assets are concentrated in U.S. oil and gas basins. The core asset base is in Martin County, Texas in the Permian Basin, with additional properties in New Mexico's Delaware Basin area. Geography matters because production, workover activity, and water-handling infrastructure are all tied to specific field locations and basin economics. - **Permian Basin, Texas and New Mexico** (100%) — Operating assets are concentrated in U.S. onshore basins, primarily Texas and New Mexico. - Core operating assets are in Martin County, Texas - Additional acreage and wells are in New Mexico's Delaware Basin - Business is concentrated in the Permian Basin, a key U.S. oil basin - Incorporated in British Columbia, Canada, with U.S. operations - Field infrastructure includes disposal and water supply assets ## Strategy Permex's strategy centers on restoring and expanding production from existing fields through workovers, recompletions, re-entries, and selective infill development. It also seeks to acquire producing assets at a discount and use field infrastructure such as saltwater disposal and water supply to support secondary recovery and lower-risk development. - **Restart and optimize existing wells** (short-term) — Existing wellbores can be cheaper to monetize than new drilling and improve field output quickly. - **Develop proved undeveloped reserves** (medium-term) — Adds future production from known acreage and extends asset life. - **Secure external financing** (short-term) — Capital is needed to fund operating needs and field development. - Restore shut-in wells and bring production back online - Use recompletions and re-entries to lift output from existing wells - Develop proved undeveloped reserves when capital is available - Acquire producing assets at discounted valuations - Support field economics with disposal and water infrastructure ## Risks Permex is exposed to commodity-price volatility, field execution risk, and the capital intensity of restoring and developing mature oil and gas assets. Its disclosures also highlight going-concern and liquidity risk, which can constrain workovers, reserve development, and the ability to maintain production. Because the business depends on a small number of operated properties, operational setbacks or prolonged shut-ins can have an outsized effect. - **Going-concern and liquidity risk** [critical] — The company disclosed insufficient working capital and reliance on external financing to fund operations and capex. - **Commodity price volatility** [high] — Oil and gas sales depend on market prices, which directly affect revenue and project returns. - **Operational restart and workover risk** [high] — Restarting shut-in wells requires repairs, tubing replacements, and successful recompletions. - **Asset concentration risk** [high] — A limited number of fields and wells means problems at one asset can materially affect results. - **Public market liquidity risk** [medium] — The shares have limited trading liquidity, which can widen spreads and increase volatility. - Commodity price swings affect realized revenue and project economics - Workover and restart execution can delay production recovery - Liquidity constraints can limit capital spending and reserve development - Concentrated asset base increases field-specific operational risk - Public market liquidity may be limited and shares may be volatile ## Accounting Permex's results are sensitive to reserve estimates, impairment testing, and asset retirement obligations because its assets are long-lived oil and gas properties. Revenue can also be lumpy because production restarts, workover timing, and fee revenue from operator contracts affect quarterly comparability. Investors should watch how capitalized field costs, reserve assumptions, and impairment judgments flow through the balance sheet and earnings. - **Oil and natural gas reserve estimates** — Higher or lower reserve estimates can materially change asset values and future expense recognition. - **Long-lived asset impairment** — Downward price or production assumptions can trigger impairment charges. - **Asset retirement obligations** — Changes in discount rates, timing, or cost estimates alter liabilities and accretion expense. - **Revenue timing and mix** — Quarterly revenue comparability can be distorted by restart timing and service fees. - Reserve estimates drive depletion and development planning - Impairment testing depends on future price and production assumptions - Asset retirement obligations require discounted liability estimates - Operator fee revenue can create quarter-to-quarter revenue swings - Workover and restart costs affect operating expense comparability --- *Last updated: 2026-04-29T04:48:22.718839+00:00*