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Permex Petroleum Corp (OILCF0.00%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing oil and gas sales revenue of $123,215, up from $47,651 in the same quarter the previous year. The increase is attributed to the resumption of oil production at the Breedlove field.
The company reported a net loss of $1,828,721 for the quarter, compared to a net loss of $751,881 in the previous year. The increase in net loss is primarily due to higher operating expenses, which rose to $1,576,277 from $806,294.
Lease operating expenses for the quarter were $428,268, compared to $91,435 in the same quarter of the previous year. This increase is attributed to higher production levels and the costs associated with restarting the Breedlove wells.
General and administrative expenses increased to $1,274,526 from $683,683, driven by higher accounting, consulting, and legal fees, as well as a performance bonus paid to the Chief Executive Officer.
Permex completed a private placement of convertible debenture units for gross proceeds of $4,276,389 during the quarter. The proceeds are intended for potential acquisitions, drilling and development, and general working capital purposes.
As of December 31, 2024, Permex had a cash balance of $690,798 and a working capital deficiency of $5,934,270. The company plans to finance its operations and capital expenditures through equity or debt financings.
Permex's oil and gas properties include the Breedlove "B" Clearfork leases in Texas, which were shut in due to financial constraints but have since resumed production. The company also holds interests in other properties in Texas and New Mexico, which remain shut in pending successful capital raising.
The filing outlines various legal proceedings involving the company, including claims from trade vendors for unpaid invoices. Permex is actively engaging with these claimants to settle outstanding claims.
Permex identified material weaknesses in its internal controls over financial reporting, including insufficient resources and ineffective controls over certain financial processes.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Permex Petroleum Corp quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.