Permex Petroleum Corporation has entered into a non-binding memorandum of understanding with private operator Chisos Ltd. for potential funding of up to $25mn to develop key assets in the Permian Basin. This transaction could allow Chisos to acquire up to a 50% non-operating working interest in specific wells to be developed and operated by Permex.
Initial $10mn tranche planned
The funding will be deployed in successive tranches, with the first targeted at $10mn to finance the drilling of eight vertical wells on Permex’s Breedlove asset. Any financial contribution from Chisos is contingent upon a dollar-for-dollar capital match from Permex, according to the terms of the memorandum.
This co-investment structure, still subject to the negotiation of definitive documentation, is designed to accelerate the value creation of Permex’s holdings in the Midland Basin. The agreement establishes a partnership framework in which Chisos remains a non-operating participant, while reinforcing its strategic footprint in a field it has historically engaged with.
A partnership rooted in shared history
James Perry Bryan, owner of Chisos, holds approximately 12.75% of Permex’s common shares on a partially diluted basis and previously served on the company’s board of directors. This prior affiliation enhances the collaboration prospects between the two entities.
Permex Petroleum Chief Executive Officer Brad Taillon stated that the collaboration could contribute to fully funding the development of the company’s core assets, while highlighting Chisos’s familiarity with the targeted field.
Marshall Baker, Chief Executive Officer of Chisos Ltd., emphasised his company’s longstanding involvement with the field and its intention to unlock further untapped potential across these assets.
