Permex Petroleum Corporation’s (“company”, Permex”) Q3-FY2019 (quarter ended June 30, 2019) net production was 74 boepd (our estimate was 102 boepd net), down 12% QoQ. The company was unable to complete additional wells in the quarter due to lack of capital.
Despite the drop in production, revenues increased 9% QoQ to $0.42 million in Q3-FY2019, due to higher oil prices.
General and Administrative (G&A) expenses were up only 2% QoQ to $0.25 million in Q3-FY2019, and were significantly lower than our estimate.
Net losses in Q3-FY2019 were $0.11 million (EPS: -$0.00) versus Q2-FY2019’s net loss of $0.15 million (EPS: -$0.00).
At the end of Q3-FY2019, the company had just $20k in cash. Working capital was -$0.69 million, with no debt.
Production growth is entirely dependent on the company’s ability to raise capital. As a result of the delays in financing, we are lowering our Q4-FY2019 production estimate from 127 boepd (net) to 75 boepd (net).
A significant reduction in our operating cost estimates more than offset our lower revenue/production forecasts. Our FY2019 net loss forecast has been revised from $1.32 million (EPS: -$0.03) to $0.81 million (EPS: -$0.02).
