Permex Petroleum Corporation announced an update to its previous news release with respect to the drilling of the Eoff PPC #3 well on its Breedlove Oilfield located in Martin County, Texas. On September 28, 2022, Permex announced that drilling had commenced and that the well spudded on September 14, 2022. It is the first well drilled by Permex on the 7,780 gross acre Breedlove Oilfield.

October 4, 2022, marked the final day of drilling of the Eoff PPC #3 well. The target depth of 8,100 ft (2468 meters) was achieved, and the casing was run to total depth. The electric wireline logging sequence of the wellbore was completed, and the results are positive and well-received by the Company.

All indications from the drilling show to be favorable as multiple zones have been found which allows the Company to proceed with the next steps of perforation and completion. During the Eoff PPC #3 well's operations, the Company successfully implemented environmentally safe practices. The fluids used are water-based and biodegradable mud.

This method is environmentally safe, while also providing samples that are used to locate potential places for future drilling. The pits are lined to ensure no leakage into the surrounding ground. Currently, the well is positioned vertically but set up for a horizontal well should the Company decide to pursue.

The Company believes that the results reveal a future of growth and development for Permex. Should the results from this drilling continue to be beneficial, the Company expects to replicate them across the 7,780 gross acres of the Breedlove Field. In addition, Permex plans to further expand into the Eoff PPC #3 well's 40-acre spacing available to create additional drilling programs. Such additional wells are already permitted and expected to begin drilling operations in the near future.

Since the beginning of 2022, the Company successfully recompleted five oil and gas wells, which came online at a combined initial production rate of 50 barrels of oil equivalent per day (BOEPD) and have stabilized at a rate of 35 BOEPD, increasing the Company's total production to 71 BOEPD. The Company has access to an additional 62 shut-in oil, gas and saltwater disposal wells that the Company intends to also be brought online. Management believes that many of these wells have the potential to yield similar results, thereby increasing the Company's total daily production solely by re-entering shut-in wells.

Further updates will be available as stages continue and as the Company moves forward to the completion and production phases of the Eoff PPC #3 well.