Permex Petroleum Corp (CSE:OIL), the Permian basin-focused junior oiler, is poised to raise up to $1.5 million from a non-brokered placing to advance the business.
The funds will go towards starting new waterfloods, bringing online shut-in wells, and general working capital, the Vancouver-based company said in a press release.
Permex said it would issue a minimum of 2.5 million units up to a maximum of 7.5 million at $0.20 each, for minimum aggregate proceeds of $500,000, and up to a maximum of $1.5 million.
Each unit comprises one share and one share purchase warrant.
Each warrant entitles the holder to buy a share for $0.30 for 24 months from the closing, subject to accelerated expiry in the event the price of the firm's shares closes at or greater than C$0.50 for 10 consecutive trading days.
Last week, Permex told investors it was aiming to lift production in 2019 and begin its San Andres Horizontal well drilling programs in Gaines County, Texas.
It wants to maximize output via enhancing its waterflood work, bringing shut-in wells online, and most importantly by scheduling this San Andrew work.
The junior oiler said in a shareholder letter Friday that it also wants to see a strong capital market performance and its share price rise through the continuation of sound operations and marketing.
"A third priority this year is to maximize our total barrels of oil equivalent in daily production for the company. This will put Permex in an organic growth model without external dependencies even at $40 per barrel oil," said Mehran Ehsan, CEO of the company.
Running through the group's achievements of 2018, Ehsan highlighted that daily gross production had increased by around 200% from the fourth quarter of 2017 to the fourth quarter of 2018.
The 2P (proved plus probable) reserves total $142 million, or 9 million barrels of oil equivalent, an increase of 22% year-on-year, while proved (1P) reserves total $79.5 million or 4.32 million barrels of oil equivalent - a 72% increase year-on-year.