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AMENDMENT NO. 4 PERMEX PETROLEUM CORPORATION A1 1381 98-1384682 2911 Turtle Creek Blvd Suite 925 Dallas TX 75219 (469) 804-1306 Non-accelerated Filer true true false

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1. BACKGROUND Permex Petroleum Corporation (the “Company”) was incorporated on April 24, 2017 under the laws of British Columbia, Canada and maintains its head office at Suite 925, 2911 Turtle Creek Blvd, Dallas, Texas, 75219. Its registered office is located at 10th floor, 595 Howe Street, Vancouver, British Columbia, Canada, V6C 2T5. The Company is primarily engaged in the acquisition, development and production of oil and gas properties in the United States. The Company’s oil and gas interests are located in Texas and New Mexico, USA. The Company is listed on the Canadian Securities Exchange (the “CSE”) under the symbol “OIL” and on the OTCQB under the symbol “OILCF”. On October 26, 2022, the Company’s board of directors approved a reverse stock split of the Company’s issued and outstanding common stock at a 1 for 60 ratio, which was effective November 2, 2022. The par value and authorized shares of common stock were not adjusted as a result of the reverse stock split. All issued and outstanding common stock, options, and warrants to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented.

2017-04-24

2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation. All intercompany balances and transactions have been eliminated. Going concern of operations These consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has incurred losses since inception in the amount of $8,260,415 and has not yet achieved profitable operations. The Company has been relying on equity financing and loans from related parties to fund its operation in the past. While the Company has been successful in securing financing to date, there can be no assurances that it will be able to do so in the future. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management plans to fund operations of the Company with its current working capital and through increasing productions from its oil and gas leases. The Company also expects to raise additional funds through equity financings. There are no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available in the future. Management believes that this plan provides an opportunity for the Company to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to, meets its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">Significant Accounting Policies (cont’d…)</td></tr></table> Use of Estimates The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) petroleum and natural gas reserves; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining asset retirement obligations; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) general credit risk associated with receivables and other assets; and (vii) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Trade and other receivables Trade and other receivables are stated at net realizable value. The majority of customers are not extended credit and the majority of the receivables has payment terms of 30 days or less. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections, and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. Given the nature and balances of the Company’s receivables the Company has no material loss allowance as at September 30, 2022 and September 30, 2021. Property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. All costs for development wells along with related acquisition costs, the costs of drilling development wells, and related asset retirement obligation (ARO) assets are capitalized. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with non-productive exploratory wells, delay rentals and exploration overhead are expensed. Costs of drilling exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing depletion expenses, assessing proved property impairments and accounting for asset dispositions. Capitalized costs of proved oil and gas properties are depleted by individual field using a unit-of-production method based on proved and probable developed reserves. Proved reserves are estimated using reserve engineer reports and represent the estimated quantities of crude oil, natural gas and natural gas liquids, which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered commercially producible. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">Significant Accounting Policies (cont’d…)</td></tr></table> Property and equipment (cont’d…) Proved oil and natural gas properties are assessed for possible impairment by comparing their carrying values with their associated undiscounted, future net cash flows. Events that can trigger assessments for possible impairments include write-downs of proved reserves based on field performance, significant decreases in the market value of an asset (including changes to the commodity price forecast or carbon costs), significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life. Impaired assets are written down to their estimated fair values, generally their discounted, future net cash flows. For proved oil and natural gas properties, the Company performs impairment reviews on a field basis, annually or as appropriate. Other corporate property and equipment consist primarily of leasehold improvements, vehicle, and office furniture and equipment and are stated at cost less accumulated depreciation. The capitalized costs are generally depreciated on a straight line basis over their estimated useful lives ranging from three to five years. For property dispositions, measurement is at fair value, unless the transaction lacks commercial substance or fair value cannot be reliably measured. Where the exchange is measured at fair value, a gain or loss is recognized in net income. Any deferred consideration recorded on property dispositions are recognized as revenue in the statement of loss and comprehensive loss over the reserve life. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s depletion rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the depletion rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized. Impairment of long-lived assets The Company assesses long-lived assets for impairment in accordance with the provisions of the Financial Account Standards Board Accounting Standards Codification (“ASC”) regarding long-lived assets. It requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of September 30, 2022 and September 30, 2021, no impairment charge has been recorded. Asset retirement obligations The Company recognizes asset retirement obligations (“ARO”) associated with tangible assets such as well sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The ARO are measured at the present value of management’s best estimate of the future remediation expenditures at the reporting date. The initial measurement of an ARO is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumption used to estimate a recorded ARO change, a revision is recorded to both the ARO and the asset retirement cost. The ARO is accreted to its then present value each period, and the asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table> Fair value measurement Fair value accounting is applied for all assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the established framework for measuring fair value and expands disclosures about fair value measurements. The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. The carrying values of cash and cash equivalents, trade receivable, other current receivables, due from/to related parties, trade payable, other current payables, accrued expenses, convertible debenture and lease liability included in the accompanying consolidated balance sheets approximated fair value at September 30, 2022 and September 30, 2021. The financial statements as of and for the years ended September 30, 2022 and September 30, 2021, do not include any recurring or nonrecurring fair value measurements relating to assets or liabilities. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company has not elected to measure any existing financial instruments at fair value. However, it may elect to measure newly acquired financial instruments at fair value in the future. Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding in the period. The diluted EPS reflects all dilutive potential common share equivalents, in the weighted average number of common shares outstanding during the period, if dilutive. All of the outstanding convertible securities, stock options and warrants were anti-dilutive for the years ended September 30, 2022 and 2021. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table> Leases At inception of a contract, the Company assesses whether a contract is, or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability. The lease liability is subsequently measured at amortized cost using the effective interest rate method. Share capital The Company records proceeds from the issuance of its common shares as equity. Incremental costs directly attributable to the issue of new common shares are shown in equity as a deduction, net of tax, from the proceeds. Common shares issued for consideration other than cash are valued based on their market value at the date that the shares are issued. Share purchase warrants The fair value of warrants issued with private placement units is determined using the Black-Scholes option pricing model. Proceeds from the issuance of private placement units are allocated between the private placement warrants and common shares on a relative fair value basis. Share purchase warrants with exercise prices denominated in a currency other than its functional currency are classified as a liability. Proceeds from the issuance of private placement units are first allocated to the warrant liability based on their fair value and the residual is allocated to common shares issued while for equity warrants, proceeds are allocated on a relative fair value basis. The changes in fair value of the warrant liability are recorded in the statement of loss and comprehensive loss. Warrants issued for oil and gas interests and warrants issued as finder’s fees are share-based payments and are measured at fair value on the date of the grant as determined using the Black-Scholes option pricing model. Share-based payments The Company issues stock options and other share-based compensation to directors, employees and others service providers. Equity awards including stock options and share purchase warrants are measured at grant date at the fair value of the instruments issued and amortized over the vesting periods using a graded vesting approach. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount ultimately recognized as an expense is based on the number of options that eventually vest. The Company has elected to account for forfeitures as they occur rather than estimate expected forfeitures. The fair value of the equity awards is determined using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience), expected dividends, and the risk-free interest rate (based on government bonds). PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table> Revenue In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when the performance obligation is satisfied, which typically occurs at the point in time when control of the product transfer to the customer. For natural gas, this is generally at the time product enters the pipeline. For crude oil, this is generally at the time the product is loaded into customer operated transports. Revenue is measured net of discounts, customs duties, royalties and withholding tax. Royalty income represents net revenue interests from certain crude oil and natural gas wells and is recognized upon the operators of the properties producing revenue from subject oil and gas wells. The Company records revenue in the month production is delivered to the purchaser. However, production statements for oil and gas sales may not be received until the following month end after the products are purchased, and as a result, the Company is required to estimate the amount of revenue to be received. The Company records the differences between its estimates and the actual amounts received for revenue in the month that payment is received from the customer. Identified differences between the Company’s revenue estimates and actual revenue received are $1,395 and $nil for years ended September 30, 2022 and September 30, 2021, respectively. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to sales volumes and prices for those good sold are estimated and recorded. The Company does not have any contract assets or liabilities, or capitalized contract costs. Foreign Currency These consolidated financial statements are presented in United States dollars (“U.S. dollar”). The functional currency of the Company and the subsidiary of the Company is the U.S. dollar. The Company changed its functional currency from Canadian dollars (“CAD”) to the U.S. dollars as at October 1, 2021. The change in functional currency from Canadian dollars to U.S. dollars is accounted for prospectively from October 1, 2021. Management determined that the Company’s functional currency had changed based on the assessment related to significant changes of the Company’s economic facts and circumstances. These significant changes included the fact that the Company’s equity financings and the primary economic environment are now in the U.S. as well as the expectation of the majority of the Company’s expenses will be denominated in U.S. dollars. Moreover, the Company’s place of business and management are now located in the United States. Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined. All gains and losses on translation of these foreign currency transactions are charged to profit or loss. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table> Income taxes Current taxes receivable or payable are estimated on taxable income or loss for the current year at the statutory tax rates enacted or substantively enacted at the reporting date. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured at the tax rates that have been enacted or substantially enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. At the end of each reporting year the Company reassesses unrecognized deferred tax assets. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority. New accounting standards There are not currently any new or pending accounting standards that have a significant impact on the Company’s consolidated financial statements.

Basis of presentation The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Principles of Consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation. All intercompany balances and transactions have been eliminated.

Going concern of operations These consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has incurred losses since inception in the amount of $8,260,415 and has not yet achieved profitable operations. The Company has been relying on equity financing and loans from related parties to fund its operation in the past. While the Company has been successful in securing financing to date, there can be no assurances that it will be able to do so in the future. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management plans to fund operations of the Company with its current working capital and through increasing productions from its oil and gas leases. The Company also expects to raise additional funds through equity financings. There are no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available in the future. Management believes that this plan provides an opportunity for the Company to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to, meets its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">Significant Accounting Policies (cont’d…)</td></tr></table>

-8260415

Use of Estimates The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) petroleum and natural gas reserves; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining asset retirement obligations; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) general credit risk associated with receivables and other assets; and (vii) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates.

Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value.

Trade and other receivables Trade and other receivables are stated at net realizable value. The majority of customers are not extended credit and the majority of the receivables has payment terms of 30 days or less. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections, and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. Given the nature and balances of the Company’s receivables the Company has no material loss allowance as at September 30, 2022 and September 30, 2021.

Property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. All costs for development wells along with related acquisition costs, the costs of drilling development wells, and related asset retirement obligation (ARO) assets are capitalized. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with non-productive exploratory wells, delay rentals and exploration overhead are expensed. Costs of drilling exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing depletion expenses, assessing proved property impairments and accounting for asset dispositions. Capitalized costs of proved oil and gas properties are depleted by individual field using a unit-of-production method based on proved and probable developed reserves. Proved reserves are estimated using reserve engineer reports and represent the estimated quantities of crude oil, natural gas and natural gas liquids, which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered commercially producible. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">Significant Accounting Policies (cont’d…)</td></tr></table> Property and equipment (cont’d…) Proved oil and natural gas properties are assessed for possible impairment by comparing their carrying values with their associated undiscounted, future net cash flows. Events that can trigger assessments for possible impairments include write-downs of proved reserves based on field performance, significant decreases in the market value of an asset (including changes to the commodity price forecast or carbon costs), significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life. Impaired assets are written down to their estimated fair values, generally their discounted, future net cash flows. For proved oil and natural gas properties, the Company performs impairment reviews on a field basis, annually or as appropriate. Other corporate property and equipment consist primarily of leasehold improvements, vehicle, and office furniture and equipment and are stated at cost less accumulated depreciation. The capitalized costs are generally depreciated on a straight line basis over their estimated useful lives ranging from three to five years. For property dispositions, measurement is at fair value, unless the transaction lacks commercial substance or fair value cannot be reliably measured. Where the exchange is measured at fair value, a gain or loss is recognized in net income. Any deferred consideration recorded on property dispositions are recognized as revenue in the statement of loss and comprehensive loss over the reserve life. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s depletion rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the depletion rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized.

P5Y

Impairment of long-lived assets The Company assesses long-lived assets for impairment in accordance with the provisions of the Financial Account Standards Board Accounting Standards Codification (“ASC”) regarding long-lived assets. It requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of September 30, 2022 and September 30, 2021, no impairment charge has been recorded.

Asset retirement obligations The Company recognizes asset retirement obligations (“ARO”) associated with tangible assets such as well sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The ARO are measured at the present value of management’s best estimate of the future remediation expenditures at the reporting date. The initial measurement of an ARO is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumption used to estimate a recorded ARO change, a revision is recorded to both the ARO and the asset retirement cost. The ARO is accreted to its then present value each period, and the asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table>

Fair value measurement Fair value accounting is applied for all assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the established framework for measuring fair value and expands disclosures about fair value measurements. The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. The carrying values of cash and cash equivalents, trade receivable, other current receivables, due from/to related parties, trade payable, other current payables, accrued expenses, convertible debenture and lease liability included in the accompanying consolidated balance sheets approximated fair value at September 30, 2022 and September 30, 2021. The financial statements as of and for the years ended September 30, 2022 and September 30, 2021, do not include any recurring or nonrecurring fair value measurements relating to assets or liabilities. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company has not elected to measure any existing financial instruments at fair value. However, it may elect to measure newly acquired financial instruments at fair value in the future.

Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding in the period. The diluted EPS reflects all dilutive potential common share equivalents, in the weighted average number of common shares outstanding during the period, if dilutive. All of the outstanding convertible securities, stock options and warrants were anti-dilutive for the years ended September 30, 2022 and 2021. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table>

Leases At inception of a contract, the Company assesses whether a contract is, or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability. The lease liability is subsequently measured at amortized cost using the effective interest rate method.

Share capital The Company records proceeds from the issuance of its common shares as equity. Incremental costs directly attributable to the issue of new common shares are shown in equity as a deduction, net of tax, from the proceeds. Common shares issued for consideration other than cash are valued based on their market value at the date that the shares are issued.

Share purchase warrants The fair value of warrants issued with private placement units is determined using the Black-Scholes option pricing model. Proceeds from the issuance of private placement units are allocated between the private placement warrants and common shares on a relative fair value basis. Share purchase warrants with exercise prices denominated in a currency other than its functional currency are classified as a liability. Proceeds from the issuance of private placement units are first allocated to the warrant liability based on their fair value and the residual is allocated to common shares issued while for equity warrants, proceeds are allocated on a relative fair value basis. The changes in fair value of the warrant liability are recorded in the statement of loss and comprehensive loss. Warrants issued for oil and gas interests and warrants issued as finder’s fees are share-based payments and are measured at fair value on the date of the grant as determined using the Black-Scholes option pricing model.

Share-based payments The Company issues stock options and other share-based compensation to directors, employees and others service providers. Equity awards including stock options and share purchase warrants are measured at grant date at the fair value of the instruments issued and amortized over the vesting periods using a graded vesting approach. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount ultimately recognized as an expense is based on the number of options that eventually vest. The Company has elected to account for forfeitures as they occur rather than estimate expected forfeitures. The fair value of the equity awards is determined using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience), expected dividends, and the risk-free interest rate (based on government bonds). PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table>

Revenue In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when the performance obligation is satisfied, which typically occurs at the point in time when control of the product transfer to the customer. For natural gas, this is generally at the time product enters the pipeline. For crude oil, this is generally at the time the product is loaded into customer operated transports. Revenue is measured net of discounts, customs duties, royalties and withholding tax. Royalty income represents net revenue interests from certain crude oil and natural gas wells and is recognized upon the operators of the properties producing revenue from subject oil and gas wells. The Company records revenue in the month production is delivered to the purchaser. However, production statements for oil and gas sales may not be received until the following month end after the products are purchased, and as a result, the Company is required to estimate the amount of revenue to be received. The Company records the differences between its estimates and the actual amounts received for revenue in the month that payment is received from the customer. Identified differences between the Company’s revenue estimates and actual revenue received are $1,395 and $nil for years ended September 30, 2022 and September 30, 2021, respectively. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to sales volumes and prices for those good sold are estimated and recorded. The Company does not have any contract assets or liabilities, or capitalized contract costs.

1395

Foreign Currency These consolidated financial statements are presented in United States dollars (“U.S. dollar”). The functional currency of the Company and the subsidiary of the Company is the U.S. dollar. The Company changed its functional currency from Canadian dollars (“CAD”) to the U.S. dollars as at October 1, 2021. The change in functional currency from Canadian dollars to U.S. dollars is accounted for prospectively from October 1, 2021. Management determined that the Company’s functional currency had changed based on the assessment related to significant changes of the Company’s economic facts and circumstances. These significant changes included the fact that the Company’s equity financings and the primary economic environment are now in the U.S. as well as the expectation of the majority of the Company’s expenses will be denominated in U.S. dollars. Moreover, the Company’s place of business and management are now located in the United States. Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined. All gains and losses on translation of these foreign currency transactions are charged to profit or loss. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in">2.</td><td style="text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr></table>

Income taxes Current taxes receivable or payable are estimated on taxable income or loss for the current year at the statutory tax rates enacted or substantively enacted at the reporting date. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured at the tax rates that have been enacted or substantially enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. At the end of each reporting year the Company reassesses unrecognized deferred tax assets. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority.

New accounting standards There are not currently any new or pending accounting standards that have a significant impact on the Company’s consolidated financial statements.

3. REVENUE Revenue from contracts with customers is presented in “Oil and gas sales” on the Consolidated Statement of Loss and Comprehensive Loss. As of September 30, 2022 and September 30, 2021, receivable from contracts with customers, included in trade and other receivables, were $56,639 and $<span id="xdx_90B_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_dxL_c20201001__20210930__us-gaap--BalanceSheetLocationAxis__us-gaap--AccountsReceivableMember_zrDUVfIsX5x5" title="Revenue::XDX::-">nil, respectively. The following table present our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_zjTjCsijB3lk" style="border-bottom: Black 1.5pt solid; text-align: center">1</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4B3_srt--StatementGeographicalAxis_custom--NMMember_zvDz3xL1INo8" style="border-bottom: Black 1.5pt solid; text-align: center">2</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BA_zUtmBiMaMHF2" style="border-bottom: Black 1.5pt solid; text-align: center">3</td><td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_431_c20211001__20220930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zzUezJAHIS15" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">621,275</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">140,236</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">761,511</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_437_c20211001__20220930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_ziv19KGEkSK4" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_43E_c20211001__20220930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zXXpipmL07R9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">675,155</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">140,236</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">815,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BC_srt--StatementGeographicalAxis_custom--TXMember_zQku69h23vmd" style="border-bottom: Black 1.5pt solid; text-align: center">1</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BE_srt--StatementGeographicalAxis_custom--NMMember_z3R7Ql5KRYPe" style="border-bottom: Black 1.5pt solid; text-align: center">2</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BA_zkKJuGidBld5" style="border-bottom: Black 1.5pt solid; text-align: center">3</td><td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_439_c20201001__20210930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zLjDtCaiilN" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">44,425</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">44,425</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_439_c20201001__20210930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_ztNnt4Kz5RVk" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,278</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,278</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_435_c20201001__20210930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zCQoS9ZXVjUg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,703</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,703</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

56639

The following table present our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_zjTjCsijB3lk" style="border-bottom: Black 1.5pt solid; text-align: center">1</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4B3_srt--StatementGeographicalAxis_custom--NMMember_zvDz3xL1INo8" style="border-bottom: Black 1.5pt solid; text-align: center">2</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BA_zUtmBiMaMHF2" style="border-bottom: Black 1.5pt solid; text-align: center">3</td><td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_431_c20211001__20220930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zzUezJAHIS15" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">621,275</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">140,236</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">761,511</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_437_c20211001__20220930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_ziv19KGEkSK4" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_43E_c20211001__20220930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zXXpipmL07R9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">675,155</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">140,236</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">815,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BC_srt--StatementGeographicalAxis_custom--TXMember_zQku69h23vmd" style="border-bottom: Black 1.5pt solid; text-align: center">1</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BE_srt--StatementGeographicalAxis_custom--NMMember_z3R7Ql5KRYPe" style="border-bottom: Black 1.5pt solid; text-align: center">2</td><td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td id="xdx_4BA_zkKJuGidBld5" style="border-bottom: Black 1.5pt solid; text-align: center">3</td><td style="padding-bottom: 1.5pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_439_c20201001__20210930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zLjDtCaiilN" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">44,425</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">44,425</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_439_c20201001__20210930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_ztNnt4Kz5RVk" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,278</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,278</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_435_c20201001__20210930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zCQoS9ZXVjUg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,703</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">46,703</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

621275

140236

761511

53880

675155

140236

815391

44425

2278

46703

4. CONCENTRATION OF CREDIT RISK The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash equivalents and trade receivables. The Company’s cash balances sometimes exceed the United States’ Federal Deposit Insurance Corporation insurance limits. The Company mitigates this risk by placing its cash and cash equivalents with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution. To date, the Company has not recognized any losses caused by uninsured balances. The majority of the Company’s receivable balance is concentrated in trade receivables, with a balance of $<span id="xdx_909_eus-gaap--AccountsReceivableNetCurrent_iI_c20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zi3v5DLZw3h3" title="Trade receivables">91,928 as of September 30, 2022. Three customers represented $<span id="xdx_905_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20211001__20220930__us-gaap--ConcentrationRiskByTypeAxis__custom--ThreeCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zXzaN1a1G5fd" title="Revenue">79,942 (<span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20211001__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--ProductOrServiceAxis__custom--ThreeCustomerMember_zpw9b1I5NJp3" title="Concentration risk percentage">87%) of the trade receivable balance. The Company routinely assesses the financial strength of its customers. The non-trade receivable balance consists of GST recoverable of $39,770 and interest receivable of $5,516. GST recoverable is due from the Canadian Government. Interest receivable is due from a financial institution with high credit rating. It is in management’s opinion that the Company is not exposed to significant credit risk. To date, the Company has not recognized any credit losses on its receivables. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021

91928

79942

0.87

39770

5516

5. ACQUISITION AND DISPOSITION Acquisition During the year ended September 30, 2021, the Company and its wholly owned subsidiary, Permex Petroleum US Corporation, acquired a <span id="xdx_908_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_zBbLifOi5uoa" title="Business acquisition, percentage of voting interests acquired">100% Working Interest and a 81.75% Net Revenue Interest in the Breedlove “B” Clearfork leases located in Martin County, Texas. The Company issued 416,666 common shares and <span id="xdx_90D_ecustom--NumberOfSharesPurchaseWarrantsAsConsideration_c20201001__20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_zDFbMPiIzQak" title="Number of shares purchase warrants as consideration">208,333 share purchase warrants as consideration for this acquisition. The Company valued the 416,666 common shares issued at a fair value of $2,468,750. The share purchase warrants were valued at $<span id="xdx_903_ecustom--SharePurchaseWarrants_c20201001__20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember__us-gaap--ValuationTechniqueAxis__us-gaap--ValuationTechniqueOptionPricingModelMember_zAQ1QkFnZTah" title="Share purchase warrants">1,051,370 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20201001__20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_zfbaycsUZq72" title="Risk free interest rate">1.51%, an expected life of <span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20201001__20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_zlWwSuatuQ97" title="Expected term">10-years, annualized volatility of <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20201001__20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_zTsWO4Akdvue" title="Expected volatility rate">96.56% and a dividend rate of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_uPure_c20201001__20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_zeYYiZqVriv7" title="Expected dividend rate">0%). The warrants have an exercise price $<span id="xdx_900_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_uUSDPShares_c20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_zfktmjfVQv5b" title="Exercise price of warrants or rights">8.76 per share (CAD$<span id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_uCADPShares_c20210930__us-gaap--BusinessAcquisitionAxis__custom--PermexPetroleumUSCorporationMember_z62LNQFdojvd" title="Exercise price of warrants or rights">12.00) and are exercisable until September 30, 2031. Disposition During the year ended September 30, 2021, the Company sold its interests in the Peavy leases together with reclamation obligations for $10,000 and recognized a loss of $604,687 from the sale. The Company also recognized a loss of $8,770 from the disposal of equipment.

0.8175

416666

208333

416666

2468750

1051370

0.0151

P10Y

0.9656

8.76

12.00

10000

604687

8770

6. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_490_20220930_z1zBwieCpvdi" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_492_20210930_zcwwndWo33la" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OilAndGasPropertyFullCostMethodGross_iI_maOAGPFzkEd_zsf1QaiGivDb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Oil and natural gas properties, at cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">8,029,234</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">6,723,778</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--ConstructionInProgressGross_iI_maOAGPFzkEd_zObtU2ztj0fd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Construction in progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,306</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OilAndGasPropertyFullCostMethodDepletion_iNI_di_msOAGPFzkEd_zwkUvZWW3sz8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depletion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(184,658</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(84,803</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OilAndGasPropertyFullCostMethodNet_iTI_mtOAGPFzkEd_maPPAENzIKW_zsQIoQxqtLR7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Oil and natural gas properties, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,304,882</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,638,975</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentOther_iI_maPPAEOzS2v_zuTaxOjPFzpj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Other property and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">127,542</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentOtherAccumulatedDepreciation_iNI_di_msPPAEOzS2v_zzi6WhuMIUX8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,648</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentOtherNet_iTI_mtPPAEOzS2v_maPPAENzIKW_zTMMLP2MZRO" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">121,894</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzIKW_zs2WTkNeum8a" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,426,776</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6,638,975</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depletion and depreciation expense was $105,503 and $60,479 for the years ended September 30, 2022 and September 30, 2021, respectively.

Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_490_20220930_z1zBwieCpvdi" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_492_20210930_zcwwndWo33la" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OilAndGasPropertyFullCostMethodGross_iI_maOAGPFzkEd_zsf1QaiGivDb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Oil and natural gas properties, at cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">8,029,234</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">6,723,778</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--ConstructionInProgressGross_iI_maOAGPFzkEd_zObtU2ztj0fd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Construction in progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,306</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OilAndGasPropertyFullCostMethodDepletion_iNI_di_msOAGPFzkEd_zwkUvZWW3sz8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depletion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(184,658</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(84,803</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OilAndGasPropertyFullCostMethodNet_iTI_mtOAGPFzkEd_maPPAENzIKW_zsQIoQxqtLR7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Oil and natural gas properties, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,304,882</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,638,975</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentOther_iI_maPPAEOzS2v_zuTaxOjPFzpj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Other property and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">127,542</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentOtherAccumulatedDepreciation_iNI_di_msPPAEOzS2v_zzi6WhuMIUX8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,648</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PropertyPlantAndEquipmentOtherNet_iTI_mtPPAEOzS2v_maPPAENzIKW_zTMMLP2MZRO" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">121,894</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzIKW_zs2WTkNeum8a" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,426,776</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6,638,975</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

8029234

6723778

460306

184658

84803

8304882

6638975

127542

5648

121894

8426776

6638975

105503

60479

7. LEASES All of the Company’s right-of-use assets are operating leases related to its office premises. Details of the Company’s right-of-use assets and lease liabilities are as follows: SCHEDULE OF RIGHT OF USE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zCjmIopPK0a8" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20210930_zJNvCRIxJGq2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeaseRightOfUseAsset_i02I_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_maAz2XJ_zuSwtqAiIkJ1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify; padding-bottom: 2.5pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">240,796</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">72,539</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Balance, beginning of the year</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiability_iS_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zAjJrvRmR0Qh" style="text-align: right" title="Beginning balance">78,949</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiability_iS_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zhqXiQOGBYXl" style="text-align: right" title="Beginning balance">53,128</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Addition</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--AdditionOperatingLeasePayments_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zstEcM8b3NQh" style="text-align: right" title="Addition">220,368</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--AdditionOperatingLeasePayments_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zierwpU0CNfi" style="text-align: right" title="Addition">57,357</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Interest expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--InterestExpenseOther_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zj7shy7BsqEc" style="text-align: right" title="Interest expense">9,042</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--InterestExpenseOther_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zpqkr7hbHlAg" style="text-align: right" title="Interest expense">9,812</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease payments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OperatingLeasePayments_iN_di_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z7msyadzMT3e" style="text-align: right" title="Lease payments">(63,453</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeasePayments_iN_di_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_ze9LweUwJrvc" style="text-align: right" title="Lease payments">(43,932</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Foreign exchange movement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ForeignCurrencyTransactionGainLossUnrealized_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zRDr3nCSug4f" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">-</td><td style="padding-bottom: 1.5pt; text-align: left"></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ForeignCurrencyTransactionGainLossUnrealized_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zCFpQt95Dsui" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">2,584</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Balance, end of the year</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseLiability_iE_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zSh3jUPakS22" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">244,906</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_989_eus-gaap--OperatingLeaseLiability_iE_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zQDCPbxMOhSk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">78,949</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Current lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zDn8PxQ8zsH4" style="text-align: right" title="Current liability">104,224</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zT4YM6xJ8Nyi" style="text-align: right" title="Current liability">51,963</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Long-term lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zfkSvxJf9e53" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term liability">140,682</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zimoeyCy7kp1" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term liability">26,986</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The following table presents the Company’s total lease cost. SCHEDULE OF LEASE COST <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20211001__20220930_zmUmAp4qTCoe" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20201001__20210930_zYmMeYFDXQ5" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_z32SyenUkyI4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Amortization of right-of-use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">52,111</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">37,129</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--InterestOnLeaseLiabilities_zTtRYDUXOWq2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Interest on lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,042</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,812</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--VariableLeaseCost_zY5QTHTZHqbk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Variable lease expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,216</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,564</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--SubleaseIncome_iN_di_z84rRgmhbsAk" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Sublease income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,633</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,191</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--PaymentsForRent_iN_di_znokrZ3bEGsl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Rent subsidy</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,644</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,169</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LeaseCost_iT_z1DM4XQxGbL4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">59,092</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">44,145</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of September 30, 2022, maturities of the Company’s operating lease liabilities are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 40%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20220930_zWGAsKniWOY4" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left">Year</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzWRd_maLOLLPzpSQ_z9RvoeF3uxVf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">110,593</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzWRd_maLOLLPzpSQ_z3EEMj679pnk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82,190</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzWRd_maLOLLPzpSQ_zXdlALZpyTzh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">84,664</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_maLOLLPzWRd_maLOLLPzpSQ_z7U4KQnJYQQ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,180</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzpSQ_zljOOOE9Fr8g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">291,627</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_z1dB9VT2Q6s5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(46,721</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseLiability_iI_zjACAHt9rvMg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">244,906</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021

SCHEDULE OF RIGHT OF USE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zCjmIopPK0a8" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20210930_zJNvCRIxJGq2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeaseRightOfUseAsset_i02I_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_maAz2XJ_zuSwtqAiIkJ1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify; padding-bottom: 2.5pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">240,796</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">72,539</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Balance, beginning of the year</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiability_iS_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zAjJrvRmR0Qh" style="text-align: right" title="Beginning balance">78,949</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiability_iS_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zhqXiQOGBYXl" style="text-align: right" title="Beginning balance">53,128</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Addition</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--AdditionOperatingLeasePayments_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zstEcM8b3NQh" style="text-align: right" title="Addition">220,368</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--AdditionOperatingLeasePayments_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zierwpU0CNfi" style="text-align: right" title="Addition">57,357</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Interest expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--InterestExpenseOther_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zj7shy7BsqEc" style="text-align: right" title="Interest expense">9,042</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--InterestExpenseOther_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zpqkr7hbHlAg" style="text-align: right" title="Interest expense">9,812</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease payments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OperatingLeasePayments_iN_di_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z7msyadzMT3e" style="text-align: right" title="Lease payments">(63,453</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeasePayments_iN_di_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_ze9LweUwJrvc" style="text-align: right" title="Lease payments">(43,932</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Foreign exchange movement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ForeignCurrencyTransactionGainLossUnrealized_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zRDr3nCSug4f" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">-</td><td style="padding-bottom: 1.5pt; text-align: left"></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--ForeignCurrencyTransactionGainLossUnrealized_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zCFpQt95Dsui" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">2,584</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Balance, end of the year</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseLiability_iE_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zSh3jUPakS22" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">244,906</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_989_eus-gaap--OperatingLeaseLiability_iE_c20201001__20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zQDCPbxMOhSk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">78,949</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Current lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zDn8PxQ8zsH4" style="text-align: right" title="Current liability">104,224</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zT4YM6xJ8Nyi" style="text-align: right" title="Current liability">51,963</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Long-term lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zfkSvxJf9e53" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term liability">140,682</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zimoeyCy7kp1" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term liability">26,986</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

240796

72539

78949

53128

220368 57357

9042

9812

63453

43932

2584

244906

78949

104224

51963

140682

26986

SCHEDULE OF LEASE COST <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20211001__20220930_zmUmAp4qTCoe" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20201001__20210930_zYmMeYFDXQ5" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_z32SyenUkyI4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Amortization of right-of-use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">52,111</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">37,129</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--InterestOnLeaseLiabilities_zTtRYDUXOWq2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Interest on lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,042</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,812</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--VariableLeaseCost_zY5QTHTZHqbk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Variable lease expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,216</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16,564</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--SubleaseIncome_iN_di_z84rRgmhbsAk" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Sublease income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,633</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,191</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--PaymentsForRent_iN_di_znokrZ3bEGsl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Rent subsidy</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,644</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(9,169</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LeaseCost_iT_z1DM4XQxGbL4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">59,092</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">44,145</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

52111

37129

9042 9812

36216

16564

36633

10191

1644

9169

59092

44145

SCHEDULE OF FUTURE LEASE PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 40%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20220930_zWGAsKniWOY4" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left">Year</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzWRd_maLOLLPzpSQ_z9RvoeF3uxVf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">110,593</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzWRd_maLOLLPzpSQ_z3EEMj679pnk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82,190</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzWRd_maLOLLPzpSQ_zXdlALZpyTzh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">84,664</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_maLOLLPzWRd_maLOLLPzpSQ_z7U4KQnJYQQ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,180</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzpSQ_zljOOOE9Fr8g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">291,627</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_z1dB9VT2Q6s5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(46,721</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseLiability_iI_zjACAHt9rvMg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">244,906</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

110593

82190

84664

14180

291627

46721

244906

8. ASSET RETIREMENT OBLIGATIONS Asset retirement obligations reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with the Company’s oil and gas properties. Changes to the asset retirement obligations are as follows: SCHEDULE OF ASSET RETIREMENT OBLIGATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Decommissioning obligations, beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--AssetRetirementObligation_iS_c20211001__20220930_zhB8r2OtjGt2" style="width: 14%; text-align: right" title="Decommissioning obligations, beginning of the year">552,594</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--AssetRetirementObligation_iS_c20201001__20210930_zA76R4rAPOHe" style="width: 14%; text-align: right" title="Decommissioning obligations, beginning of the year">271,402</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Obligations recognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--AssetRetirementObligationsRecognized_c20211001__20220930_zQxwr5edZuH4" style="text-align: right" title="Obligations recognized">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--AssetRetirementObligationsRecognized_c20201001__20210930_z3LGci3C5cJi" style="text-align: right">258,726</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Obligations derecognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--AssetRetirementObligationsDerecognized_c20211001__20220930_zFKy7nOOoCv4" style="text-align: right" title="Obligations derecognized">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--AssetRetirementObligationsDerecognized_c20201001__20210930_zVWtYXSz3hRg" style="text-align: right">(125,511</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Revisions of estimates</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20211001__20220930_zOhDZP2XR1bf" style="text-align: right" title="Revisions of estimates">(371,212</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20201001__20210930_zmQyn3SwSuld" style="text-align: right" title="Revisions of estimates">117,921</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Accretion expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--AssetRetirementObligationAccretionExpense_c20211001__20220930_zTFqWiYbOwDe" style="text-align: right" title="Accretion expense">55,030</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--AssetRetirementObligationAccretionExpense_c20201001__20210930_zhBtf14CMQvb" style="text-align: right" title="Accretion expense">19,907</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Foreign exchange movement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AssetRetirementObligationForeignCurrencyTranslationGainLoss_c20211001__20220930_zjLTpo2H2dy1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AssetRetirementObligationForeignCurrencyTranslationGainLoss_c20201001__20210930_zvd0HJ2Hbvs7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">10,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Decommissioning obligations, ending of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--AssetRetirementObligation_iE_c20211001__20220930_zddFPnSh46Fc" style="border-bottom: Black 2.5pt double; text-align: right" title="Decommissioning obligations, ending of the year">236,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--AssetRetirementObligation_iE_c20201001__20210930_zcJiyG3IAbZj" style="border-bottom: Black 2.5pt double; text-align: right" title="Decommissioning obligations, ending of the year">552,594</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> During the year ended September 30, 2022, the Company had revision of estimates totaling $371,212 (2021 - increase of $117,921) primarily due to changes in future cost estimates and retirement dates for its oil and gas assets. Reclamation bonds As of September 30, 2022, the Company held reclamation bonds of $145,000 (September 30, 2021 - $144,847), which are expected to be released after all reclamation work has been completed with regard to its oil and natural gas interests. During the year ended September 30, 2021, the Company wrote off $50,165 of a reclamation deposit forfeited by the Texas State government due to a violation on a previously owned property.

SCHEDULE OF ASSET RETIREMENT OBLIGATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Decommissioning obligations, beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--AssetRetirementObligation_iS_c20211001__20220930_zhB8r2OtjGt2" style="width: 14%; text-align: right" title="Decommissioning obligations, beginning of the year">552,594</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--AssetRetirementObligation_iS_c20201001__20210930_zA76R4rAPOHe" style="width: 14%; text-align: right" title="Decommissioning obligations, beginning of the year">271,402</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Obligations recognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--AssetRetirementObligationsRecognized_c20211001__20220930_zQxwr5edZuH4" style="text-align: right" title="Obligations recognized">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--AssetRetirementObligationsRecognized_c20201001__20210930_z3LGci3C5cJi" style="text-align: right">258,726</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Obligations derecognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--AssetRetirementObligationsDerecognized_c20211001__20220930_zFKy7nOOoCv4" style="text-align: right" title="Obligations derecognized">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--AssetRetirementObligationsDerecognized_c20201001__20210930_zVWtYXSz3hRg" style="text-align: right">(125,511</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Revisions of estimates</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20211001__20220930_zOhDZP2XR1bf" style="text-align: right" title="Revisions of estimates">(371,212</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20201001__20210930_zmQyn3SwSuld" style="text-align: right" title="Revisions of estimates">117,921</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Accretion expense</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--AssetRetirementObligationAccretionExpense_c20211001__20220930_zTFqWiYbOwDe" style="text-align: right" title="Accretion expense">55,030</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--AssetRetirementObligationAccretionExpense_c20201001__20210930_zhBtf14CMQvb" style="text-align: right" title="Accretion expense">19,907</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Foreign exchange movement</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AssetRetirementObligationForeignCurrencyTranslationGainLoss_c20211001__20220930_zjLTpo2H2dy1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AssetRetirementObligationForeignCurrencyTranslationGainLoss_c20201001__20210930_zvd0HJ2Hbvs7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Foreign exchange movement">10,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Decommissioning obligations, ending of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--AssetRetirementObligation_iE_c20211001__20220930_zddFPnSh46Fc" style="border-bottom: Black 2.5pt double; text-align: right" title="Decommissioning obligations, ending of the year">236,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--AssetRetirementObligation_iE_c20201001__20210930_zcJiyG3IAbZj" style="border-bottom: Black 2.5pt double; text-align: right" title="Decommissioning obligations, ending of the year">552,594</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

552594

271402

258726 -125511

-371212

117921

55030

19907

10149

236412

552594

-371212

117921

145000 144847 -50165

9. DEBT Convertible debenture As of September 30, 2022, the Company had a debenture loan of $73,000 (CAD$100,000) (September 30, 2021 - $78,500) from the CEO of the Company outstanding. The debenture loan is secured by an interest in all of the Company’s right, title, and interest in all of its oil and gas assets, bears interest at a rate of 12% per annum and has a <span id="xdx_90E_eus-gaap--DebtInstrumentMaturityDateDescription_c20211001__20220930__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zNcIlrnTrN6l" title="Debt instrument, maturity date, description">maturity date of December 20, 2022. The debenture is convertible at the holder’s option into units of the Company at $<span id="xdx_901_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_c20220930__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zgidxJp1QwU3" title="Debt instrument, convertible, conversion price">6.57 (CAD$<span id="xdx_90F_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_uCADPShares_c20220930__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zeYEj3VDk3ce" title="Debt instrument, convertible, conversion price">9.00) per unit. Each unit will be comprised of one common share of the Company and one share purchase warrant; each warrant entitles the holder to acquire one additional common share for a period of three years at an exercise price of $8.76 (CAD$12.00). During the year ended September 30, 2022, the Company repaid $34,709 of the loan (CAD$47,546). Subsequent to September 30, 2022, the Company repaid the remaining principal loan amount of CAD$52,454. During the years ended September 30, 2022 and September 30, 2021, the Company recorded interest of $9,360 and $13,506, respectively. Loan payable In May 2020, the Company opened a Canada Emergency Business Account (“CEBA”) and received a loan of $<span id="xdx_907_eus-gaap--ProceedsFromLoans_c20200501__20200530__us-gaap--UnderlyingAssetClassAxis__us-gaap--LoansPayableMember__us-gaap--TypeOfArrangementAxis__custom--CEBAMember_zLAHS9dysFn2" title="Proceeds from loans">28,640 (CAD$<span id="xdx_908_eus-gaap--ProceedsFromLoans_uCAD_c20200501__20200530__us-gaap--UnderlyingAssetClassAxis__us-gaap--LoansPayableMember__us-gaap--TypeOfArrangementAxis__custom--CEBAMember_zTrT1Aq6QyHf" title="Proceeds from loans">40,000) from the Canadian Government. The CEBA program was established to provide interest-free loans of up to CAD$60,000 to small businesses to help them cover operating costs during the COVID-19 pandemic. The loan was unsecured and non-interest bearing with a repayment deadline of December 31, 2023. During the year ended September 30, 2022, the Company repaid the loan balance of $23,600 (CAD$30,000) and recognized a gain of $7,800 (CAD$10,000) on the forgiven amount. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021

73000

100000

78500

0.12

maturity date of December 20, 2022

6.57

9.00

P3Y

8.76

12.00

34709

47546

52454

9360

13506

28640

40000

60000

23600

30000

7800 10000

10. RELATED PARTY TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in"></td><td style="text-align: justify; width: 0.25in">i)</td><td style="text-align: justify">In October 2019, the Company issued $<span id="xdx_905_eus-gaap--ConvertibleDebt_iI_c20191031__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zhJTt4IVnkZ7" title="Convertible debenture">76,000 (CAD$<span id="xdx_90C_eus-gaap--ConvertibleDebt_iI_uCAD_c20191031__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember_z4ueoRJWfZMd" title="Convertible debenture">100,000) in convertible debenture to a director of the Company for cash. The debenture loan was secured by an interest in all of the Company’s right, title, and interest in all of its oil and gas assets, bore interest at a rate of <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20191031__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember_z5yEavAzHrZh">12% per annum and had a <span id="xdx_907_eus-gaap--DebtInstrumentMaturityDateDescription_c20191001__20191031__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember_zarmo1O878Jh" title="Maturity date">maturity date of September 30, 2021. During the year ended September 30, 2021, the Company repaid the principal loan amount of CAD$<span id="xdx_90E_eus-gaap--RepaymentsOfShortTermDebt_uCAD_c20201001__20210930__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember_zMCam9J5vQK4" title="Repayment of debt">100,000 together with accrued interest of $<span id="xdx_90A_eus-gaap--InterestExpenseDebt_c20211001__20220930__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zrBz8e1iTQfl" title="Accrued interest">13,090. During the year ended September 30, 2021, the Company recorded interest of $<span id="xdx_902_eus-gaap--InterestExpenseDebt_c20201001__20210930__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zkmVbDufjjvl" title="Interest expenses, debt">4,026.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td><td style="text-align: justify"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"></td><td style="text-align: justify">ii)</td><td style="text-align: justify">In February 2020, the Company issued $<span id="xdx_90F_eus-gaap--ConvertibleDebt_iI_c20200229__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember_zpymVi0676A4" title="Convertible debenture">76,000 (CAD$100,000) in convertible debenture to the CEO of the Company for cash. The debenture loan is secured by an interest in all of the Company’s right, title, and interest in all of its oil and gas assets, bears interest at a rate of <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20200229__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember_zLMm3kawusr" title="Interest rate">12% per annum and has an original <span id="xdx_908_eus-gaap--DebtInstrumentMaturityDateDescription_c20200201__20200229__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember_zfK3Cp3pBmR8" title="Maturity date">maturity date of February 20, 2022. During the year ended September 30, 2022, the Company extended the maturity date to December 20, 2022 and repaid $34,709 of the loan (CAD$47,546). During the years ended September 30, 2022 and September 30, 2021, the Company recorded interest of $<span id="xdx_907_eus-gaap--InterestExpenseDebt_c20211001__20220930__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_z6DMaIgypfa8" title="Interest expense, debt">9,360 and $<span id="xdx_907_eus-gaap--InterestExpenseDebt_c20201001__20210930__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_ztm5NgJvnow7" title="Interest expense, debt">9,480, respectively. As at September 30, 2021, accrued interest of $<span id="xdx_903_eus-gaap--OtherLiabilitiesCurrent_iI_c20210930__us-gaap--DebtInstrumentAxis__custom--ConvertibleDebenturesMember__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember_zpzwLBNmHaA9" title="Due to related parties">15,176 was included in amounts due to related parties.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td><td style="text-align: justify"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"></td><td style="text-align: justify">iii)</td><td style="text-align: justify">The Company has an employment agreement with the CEO of the Company for an annual base salary of $<span id="xdx_901_eus-gaap--OfficersCompensation_c20211001__20220930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zSHZbl1Zn7d4" title="Annual base salary">250,000, with no specified term. <span id="xdx_90D_eus-gaap--RelatedPartyTransactionDescriptionOfTransaction_c20211001__20220930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_ziSLoTymHuP4" title="Related party transaction description">The CEO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to three years of base salary and a bonus equal to 20% of the annual base salary. During the years ended September 30, 2022 and September 30, 2021, the Company incurred management fees of $220,834 and $149,806, respectively, to the CEO of the Company. The Company considers this a related party transaction, as it relates to key management personnel and entities over which it has control or significant influence.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td><td style="text-align: justify"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"></td><td style="text-align: justify">iv)</td><td style="text-align: justify">On May 1, 2022, the Company entered into an employment agreement with the CFO of the Company for an annual base salary of $<span id="xdx_907_eus-gaap--OfficersCompensation_c20220501__20220501__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zpBETFcTP1Sj" title="Annual base salary">50,000, with no specified term. <span id="xdx_904_eus-gaap--RelatedPartyTransactionDescriptionOfTransaction_c20220501__20220531__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zkE7Faa0i0Ye" title="Description of officer annual bonus">The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to two months of base salary. During the years ended September 30, 2022, the Company incurred salaries of $<span id="xdx_905_eus-gaap--SalariesWagesAndOfficersCompensation_c20211001__20220930__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zBx3VfRrNfC2" title="Annual base salary">20,835 to the CFO of the Company. The Company considers this a related party transaction, as it relates to key management personnel and entities over which it has control or significant influence.</td></tr></table> Included in amounts due to related parties are $nil (2021 - $1,321) related to accrued management fee to a director of the Company and $nil (2021 - $131) in advances from the CEO of the Company. Amounts due to related parties are unsecured, non-interest bearing, and have no specific terms of repayment.

76000

100000

0.12

maturity date of September 30, 2021

100000

13090

4026

76000

100000

0.12

maturity date of February 20, 2022.

34709

47546

9360

9480

15176

250000

The CEO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to three years of base salary and a bonus equal to 20% of the annual base salary

220834

149806

50000

The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to two months of base salary

20835

1321

131

11. LOSS PER SHARE The calculation of basic and diluted loss per share for the years ended September 30, 2022 and 2021 was based on the net losses attributable to common shareholders. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20211001__20220930_zrJQQKotLure" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20201001__20210930_zFZV0wXhoBs4" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_zt58WzGCpz31" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(2,714,616</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(1,253,242</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zX7VOUVZlWyj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Weighted average common shares outstanding</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,543,021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">678,958</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--EarningsPerShareBasic_zG1EQa4Y1HB" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic and diluted loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.76</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.84</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> As of September 30, 2022, $73,000 (CAD$100,000) of convertible debentures convertible into 11,111 common shares, 84,583 (2021 - 37,917) stock options and 1,097,096 (2021 - 208,333) warrants were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021

SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20211001__20220930_zrJQQKotLure" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20201001__20210930_zFZV0wXhoBs4" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_405_eus-gaap--NetIncomeLoss_zt58WzGCpz31" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(2,714,616</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(1,253,242</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zX7VOUVZlWyj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Weighted average common shares outstanding</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,543,021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">678,958</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--EarningsPerShareBasic_zG1EQa4Y1HB" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic and diluted loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.76</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.84</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

-2714616

-1253242

1543021

678958

-1.76

-1.84

73000

100000

11111

84583

37917

1097096 208333

12. EQUITY Common stock The Company has authorized an unlimited number of common shares with no par value. At September 30, 2022 and September 30, 2021, the Company had 1,932,604 and 1,103,010 common shares issued and outstanding, respectively. During the year ended September 30, 2022, the Company: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in"></td><td style="text-align: justify; width: 0.25in">a)</td><td style="text-align: justify">Completed a non-brokered private placement of <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zSvi6dnzM52b" title="Stock shares new issue">44,117 units at a price of $12.96 (CAD$<span id="xdx_90E_eus-gaap--SaleOfStockPricePerShare_iI_uCADPShares_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zqW7AxNZFQs5" title="Sale of stock price per share">16.20) per unit for gross proceeds of $<span id="xdx_904_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zTYpk3VYyIcg" title="Common stock, gross proceeds">571,760 (CAD$<span id="xdx_903_eus-gaap--ProceedsFromIssuanceOfCommonStock_uCAD_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zS0zT5Tg901e" title="Common stock, gross proceeds">714,700). Each unit is comprised of one common share and one half of one share purchase warrant; each whole warrant entitles the holder to acquire one additional common share for a period of 24 months at an exercise price of $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_ziOqW1T50w16" title="Exercise price">25.80 (CAD$<span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_uCADPShares_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zUom0y9sYCd4" title="Exercise price">32.40). $<span id="xdx_906_eus-gaap--ProceedsFromIssuanceOfWarrants_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zQsHAlypo073" title="Proceeds from allocated warrants">202,009 of the proceeds was allocated to the warrants and recorded as a warrant liability. The Company paid $34,733 and issued <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zF0phjw7Muk3" title="Warrants issued">2,680 agent’s warrants as a finders’ fee. The finder’s warrants have the same terms as the warrants issued under the private placement. The finder’s warrants were valued at $<span id="xdx_902_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zSM8fayTQNj7" title="Warrants issued">24,543 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zlDsePC86X7a" title="Risk- free interest rate">0.98%, an expected life of <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zAAVQcMCVL42" title="Expected life">2 years, annualized volatility of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zv6zFNlhbKij" title="Annualized volatility">153.02% and a dividend rate of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z2Ucu6upXmY2" title="Dividend rate">0%). The Company also incurred filing and other expenses of $800 in connection with the private placement. $8,671 of issuance costs related to the warrants was recorded in the statement of loss and comprehensive loss.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td><td style="text-align: justify"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"></td><td style="text-align: justify">b)</td><td style="text-align: justify">Completed a brokered private placement of 785,477 units at a price of $9.60 per unit for gross proceeds of $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zZE0co2wdp04" title="Common stock, gross proceeds">7,540,580. Each unit is comprised of one common share and one common share purchase warrant; each warrant entitles the holder to acquire one additional common share for a period of 5 years at an exercise price of $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zSTaul3gt8yc" title="Exercise price">12.60. $<span id="xdx_908_eus-gaap--ProceedsFromIssuanceOfWarrants_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zE4erQs5oQ25" title="Proceeds from allocated warrants">607,170 of the proceeds was allocated to the warrants. ThinkEquity LLC acted as sole placement agent for the private placement. In connection with the private placement, ThinkEquity received a cash commission of $754,058, 78,548 broker warrants and expense reimbursement of $131,560. The broker’s warrants have the same terms as the warrants issued under the private placement. The broker’s warrants were valued at $858,429 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zCUJT6WezP0i" title="Risk-free interest rate">2.45%, an expected life of <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zhC2PeWORuqj" title="Expected life">5 years, annualized volatility of <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zYAFszQAWoSe" title="Annualized volatility">134.66% and a dividend rate of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zfdv2T8ckDK9" title="Dividend rate">0%). The Company also incurred filing and other expenses of $140,475 in connection with the private placement.</td></tr></table> During the year ended September 30, 2021, the Company: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="text-align: justify; width: 0.4in"></td><td style="text-align: justify; width: 0.25in">a)</td><td style="text-align: justify">Issued <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20201001__20210930__us-gaap--TypeOfArrangementAxis__custom--ServiceAgreementMember_zmfROpZz9fZh" title="Common stock, shares issued">19,271 common shares of the Company for a fair value of $54,958 pursuant to service agreements.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td><td style="text-align: justify"> </td><td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"></td><td style="text-align: justify">b)</td><td style="text-align: justify">Issued <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20201001__20210930__us-gaap--TypeOfArrangementAxis__custom--PropertyAcquisitionAgreementMember_zTlELYu7ZJl5" title="Common stock, shares issued">416,666 common shares of the Company for a value of $<span id="xdx_903_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_c20201001__20210930__us-gaap--TypeOfArrangementAxis__custom--PropertyAcquisitionAgreementMember_zkCI0TmsnWbb" title="Fair value of common stock">2,468,750 pursuant to a property acquisition agreement.</td></tr></table> Share-based payments Stock options The Company has a stock option plan (the “Plan”) in place under which it is authorized to grant options to executive officers and directors, employees and consultants. Pursuant to the Plan, the Company may issue aggregate stock options totaling up to 10% of the issued and outstanding common stock of the Company. Further, the Plan calls for the exercise price of each option to be equal to the market price of the Company’s stock as calculated on the date of grant. The options can be granted for a maximum term of <span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20211001__20220930_zhTnqblOl7fk" title="Vested">10 years and vest at the discretion of the Board of Directors at the time of grant. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <div style="margin-left: auto; margin-right: auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in">12.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">EQUITY (cont’d…)</td></tr></table> Share-based payments (cont’d…) Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of options</td><td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="text-align: right; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20201001__20210930_z6aSLRFBhEDb" style="width: 16%; text-align: right" title="Number of options, beginning balance">39,003</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20201001__20210930_zR2qt03rAh52" style="width: 16%; text-align: right" title="Weighted average exercise price, beginning balance">18.75</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_di_c20201001__20210930_z8rWXnhJhDc9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(1,086</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_c20201001__20210930_zRF0nOVKubGa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">23.70</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance, September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20211001__20220930_zE5cNfxsxTTj" style="text-align: right" title="Number of options, beginning balance">37,917</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20211001__20220930_zIy2tsyeAu6c" style="text-align: right" title="Weighted average exercise price,beginning balance">19.51</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20211001__20220930_zRE6nI8wk9nf" style="text-align: right" title="Granted">55,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zAhd3CFe6o0b" style="text-align: right" title="Weighted average exercise price, granted">10.51</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_di_c20211001__20220930_z8RvgGrrsgu5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(8,334</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zTbVWdfVo3Ud" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">17.34</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20211001__20220930_z3qf4wULZVU5" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options, ending balance">84,583</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20211001__20220930_zS8RlGLyp4mc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, ending balance">13.26</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable at September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20220930_ze64gJspZWHd" style="border-bottom: Black 2.5pt double; text-align: right" title="Exercisable">83,333</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20211001__20220930_zXiz0mjogYJ" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, exercisable">13.42</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The aggregate intrinsic value of options outstanding and exercisable as at September 30, 2022 was $<span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iI_dxL_c20220930_zO9wTWcjbOT1" title="Aggregate intrinsic value of options outstanding and exercisable::XDX::-">nil (2021 - $<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iI_dxL_c20210930_zgovOUCF1Vhg" title="Aggregate intrinsic value of options outstanding and exercisable::XDX::-">nil). The options outstanding as of September 30, 2022 have exercise prices in the range of $2.19 to $21.90 and a weighted average remaining contractual life of <span id="xdx_900_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20211001__20220930_zBrRb33yb1V6" title="Weighted average remaining contractual life">7.72 years. There were no options granted during the year ended September 30, 2021. During the years ended September 30, 2022 and 2021, the Company recognized share-based payment expense of $546,335 and $2,870, respectively, for the portion of stock options that vested during the year. The following weighted average assumptions were used for the Black-Scholes valuation of stock options granted: <p id="xdx_895_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_z8fJmwTIFp1e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"> SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="text-align: right; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1.50</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10 Years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930_zB7vQLDZuwac" title="Expected annualized volatility">96.56</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsOptionGranted_pid_dxL_c20201001__20210930_zfppUD5zhK64" title="Weighted average option granted::XDX::-">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <div style="margin-left: auto; margin-right: auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in">12.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">EQUITY (cont’d…)</td></tr></table> Share-based payments (cont’d…) <p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zKLpCNQ3YxLg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">As September 30, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.4in; border-collapse: collapse; width: 94%"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Expiry Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zubkLiLr3Hj7" style="width: 22%; text-align: right" title="Number of options">27,917</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zB6n3w8CSe65" style="width: 22%; text-align: right" title="Exercise price">21.90</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 48%; text-align: justify"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zip5K5lIbFb2" title="Expiry date">December 4, 2027</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_z9GnYJFPRiJ8" style="text-align: right" title="Number of options">5,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_z4PSwj3s1go6" style="text-align: right" title="Exercise price">13.14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: justify"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zBOD5PNQrQX4" title="Expiry date">November 1, 2028</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_z06ZGu592sLi" style="text-align: right" title="Number of options">5,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_z2ZEp6frMox4" style="text-align: right" title="Exercise price">2.19</td><td style="text-align: left"> </td><td> </td> <td style="text-align: justify"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zf6WSqdhN7Yb" title="Expiry date">March 16, 2030</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z7pib2CmosK3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of options">51,666</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zzMCnrK7ctAc" style="padding-bottom: 1.5pt; text-align: right" title="Exercise Price">10.51</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: justify; padding-bottom: 1.5pt"><span id="xdx_904_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_ze6FTGPaxvPg" title="Expiry date">October 6, 2031</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930_zZnScXvF1Yve" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options">84,583</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: justify; padding-bottom: 2.5pt"> </td></tr> </table> Warrants Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20201001__20210930_zm0GeOFr5IRg" style="width: 16%; text-align: right" title="Number of warrants, beginning balance">80,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20201001__20210930_zP2mfvzYVDj1" style="width: 16%; text-align: right" title="Weighted Average Exercise Price">12.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20201001__20210930_zmnRv0Nx92ej" style="text-align: right" title="Granted">208,333</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20201001__20210930_zVyAmX91Dyr5" style="text-align: right" title="Weighted average exercise price, granted">9.48</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Warrants expired</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_iN_di_c20201001__20210930_z9Ata2d76God" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants expired">(80,087</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirationsWeightedAverageGrantDateFairValue_c20201001__20210930_z3Z9PB8m9Y3b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, warrants expired">13.46</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance, September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20211001__20220930_z5grjp6iz0wf" style="text-align: right">208,333</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20211001__20220930_zuPcLXM5fhmc" style="text-align: right" title="Weighted Average Exercise Price">9.42</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20211001__20220930_ztUp6BY9raT7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">888,763</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20211001__20220930_zpFRNsM69Dn" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">12.91</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentsOutstandingNumber_iE_c20211001__20220930_zvhVCaK6xwN8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, ending balance">1,097,096</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iE_c20211001__20220930_zYPULqMxoI49" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price">12.12</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_89F_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zlO1itP3rBAf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">As September 30, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.4in; border-collapse: collapse; width: 94%"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Expiry Date</td></tr> <tr style="vertical-align: bottom"> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_ziWgxI3CkZO8" style="width: 22%; text-align: right" title="Number of warrants">24,739</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zkL7W4W2EMga" style="width: 22%; text-align: right" title="Exercise price">23.65</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 48%; text-align: justify"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zzTbiOmoXTWf" title="Expiry date">November 4, 2023</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zIc9ELmqcZC" style="text-align: right" title="Number of warrants">864,024</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zSfIGLg2vAOi" style="text-align: right">12.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: justify"><span id="xdx_903_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zJNL6VO0fuG8" title="Expiry date">March 29, 2027</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zkGvSsUCQBe1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants">208,333</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_ziUPlaDEJrW1" style="padding-bottom: 1.5pt; text-align: right">8.76</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: justify; padding-bottom: 1.5pt"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zWtIckfQmqN8" title="Expiry date">October 1, 2031</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930_zfdld7W6IVci" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants">1,097,096</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: justify; padding-bottom: 2.5pt"> </td></tr> </table> <span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zIHfzCcJYbw5" title="Number of shares issued with private placement">22,059 warrants issued with private placement units during fiscal 2022 have an exercise price denominated in CAD. These warrants were initially valued at $202,009 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_uPure_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zzbB8SxM2QF" title="Risk free interest rate">0.98%, an expected life of <span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zgkroIa1kogg" title="Expected life">2 years, annualized volatility of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_uPure_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zeVDqtOqo0yg" title="Volatility rate">153.02% and a dividend rate of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_uPure_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zQxfVfTvKTSd" title="Dividend rate">0%) and recorded as a warrant liability. These warrants were subsequently revaluated and a gain on fair value adjustment of $178,509 was recorded during the year ended September 30, 2022. <p id="xdx_897_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zohIUNNTUBr1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at September 30, 2022 and November 4, 2021: SCHEDULE OF VALUATION OF WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49B_20211001__20220930_zri5YU20J1t3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20211103__20211104_zEdZFfA3KdX8" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30,2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">November 4, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_hus-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zvnfFouQMzmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3.79</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.98</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcCIljjceJJl" title="Expected life of options">1 Year</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zOfZ538k78t6" title="Expected life of options">2 Years</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_hus-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zco7zbcwEuV9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135.59</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153.02</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dpxL_uPure_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxMLcAMTTuT5" title="Dividend rate::XDX::0">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dpxL_uPure_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zz1mamWVL1Za" title="Dividend rate::XDX::0">Nil</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--SharePrice_iE_hus-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zgib37uTfubf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11.45</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <div style="margin-left: auto; margin-right: auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div>

1932604

1103010

44117

12.96

16.20

571760

714700

25.80

32.40

202009

34733

2680

24543

0.0098

P2Y

1.5302

800

8671

785477

9.60

7540580

P5Y

12.60

607170

754058

78548

131560

858429

0.0245

P5Y

1.3466

19271

54958

416666

2468750

0.10

P10Y

Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of options</td><td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="text-align: right; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20201001__20210930_z6aSLRFBhEDb" style="width: 16%; text-align: right" title="Number of options, beginning balance">39,003</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20201001__20210930_zR2qt03rAh52" style="width: 16%; text-align: right" title="Weighted average exercise price, beginning balance">18.75</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_di_c20201001__20210930_z8rWXnhJhDc9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(1,086</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_c20201001__20210930_zRF0nOVKubGa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">23.70</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance, September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20211001__20220930_zE5cNfxsxTTj" style="text-align: right" title="Number of options, beginning balance">37,917</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20211001__20220930_zIy2tsyeAu6c" style="text-align: right" title="Weighted average exercise price,beginning balance">19.51</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20211001__20220930_zRE6nI8wk9nf" style="text-align: right" title="Granted">55,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zAhd3CFe6o0b" style="text-align: right" title="Weighted average exercise price, granted">10.51</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_di_c20211001__20220930_z8RvgGrrsgu5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(8,334</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zTbVWdfVo3Ud" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">17.34</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20211001__20220930_z3qf4wULZVU5" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options, ending balance">84,583</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20211001__20220930_zS8RlGLyp4mc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, ending balance">13.26</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable at September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20220930_ze64gJspZWHd" style="border-bottom: Black 2.5pt double; text-align: right" title="Exercisable">83,333</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20211001__20220930_zXiz0mjogYJ" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, exercisable">13.42</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

39003

18.75

1086

23.70

37917

19.51

55000

10.51

8334

17.34

84583

13.26

83333

13.42

2.19

21.90

P7Y8M19D

546335

2870

<p id="xdx_895_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_z8fJmwTIFp1e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"> SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="text-align: right; padding-bottom: 1.5pt"> </td><td style="text-align: right; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="text-align: right; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1.50</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10 Years</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930_zB7vQLDZuwac" title="Expected annualized volatility">96.56</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsOptionGranted_pid_dxL_c20201001__20210930_zfppUD5zhK64" title="Weighted average option granted::XDX::-">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

0.0150

P10Y

0.9656

10.17

<p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zKLpCNQ3YxLg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">As September 30, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.4in; border-collapse: collapse; width: 94%"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Expiry Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zubkLiLr3Hj7" style="width: 22%; text-align: right" title="Number of options">27,917</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zB6n3w8CSe65" style="width: 22%; text-align: right" title="Exercise price">21.90</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 48%; text-align: justify"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zip5K5lIbFb2" title="Expiry date">December 4, 2027</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_z9GnYJFPRiJ8" style="text-align: right" title="Number of options">5,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_z4PSwj3s1go6" style="text-align: right" title="Exercise price">13.14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: justify"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zBOD5PNQrQX4" title="Expiry date">November 1, 2028</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_z06ZGu592sLi" style="text-align: right" title="Number of options">5,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_z2ZEp6frMox4" style="text-align: right" title="Exercise price">2.19</td><td style="text-align: left"> </td><td> </td> <td style="text-align: justify"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zf6WSqdhN7Yb" title="Expiry date">March 16, 2030</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z7pib2CmosK3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of options">51,666</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zzMCnrK7ctAc" style="padding-bottom: 1.5pt; text-align: right" title="Exercise Price">10.51</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: justify; padding-bottom: 1.5pt"><span id="xdx_904_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_ze6FTGPaxvPg" title="Expiry date">October 6, 2031</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220930_zZnScXvF1Yve" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options">84,583</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: justify; padding-bottom: 2.5pt"> </td></tr> </table>

27917

21.90

2027-12-04

5000

13.14

2028-11-01

5000

2.19

2030-03-16

51666

10.51

2031-10-06

84583

Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20201001__20210930_zm0GeOFr5IRg" style="width: 16%; text-align: right" title="Number of warrants, beginning balance">80,087</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20201001__20210930_zP2mfvzYVDj1" style="width: 16%; text-align: right" title="Weighted Average Exercise Price">12.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20201001__20210930_zmnRv0Nx92ej" style="text-align: right" title="Granted">208,333</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20201001__20210930_zVyAmX91Dyr5" style="text-align: right" title="Weighted average exercise price, granted">9.48</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Warrants expired</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_iN_di_c20201001__20210930_z9Ata2d76God" style="border-bottom: Black 1.5pt solid; text-align: right" title="Warrants expired">(80,087</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirationsWeightedAverageGrantDateFairValue_c20201001__20210930_z3Z9PB8m9Y3b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, warrants expired">13.46</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance, September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20211001__20220930_z5grjp6iz0wf" style="text-align: right">208,333</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20211001__20220930_zuPcLXM5fhmc" style="text-align: right" title="Weighted Average Exercise Price">9.42</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20211001__20220930_ztUp6BY9raT7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">888,763</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20211001__20220930_zpFRNsM69Dn" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">12.91</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentsOutstandingNumber_iE_c20211001__20220930_zvhVCaK6xwN8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, ending balance">1,097,096</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iE_c20211001__20220930_zYPULqMxoI49" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price">12.12</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

80087

12.77

208333

9.48

80087

13.46

208333

9.42

888763

12.91 1097096 12.12

<p id="xdx_89F_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zlO1itP3rBAf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">As September 30, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.4in; border-collapse: collapse; width: 94%"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Expiry Date</td></tr> <tr style="vertical-align: bottom"> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_ziWgxI3CkZO8" style="width: 22%; text-align: right" title="Number of warrants">24,739</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zkL7W4W2EMga" style="width: 22%; text-align: right" title="Exercise price">23.65</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 48%; text-align: justify"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zzTbiOmoXTWf" title="Expiry date">November 4, 2023</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zIc9ELmqcZC" style="text-align: right" title="Number of warrants">864,024</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zSfIGLg2vAOi" style="text-align: right">12.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: justify"><span id="xdx_903_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zJNL6VO0fuG8" title="Expiry date">March 29, 2027</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zkGvSsUCQBe1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants">208,333</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_ziUPlaDEJrW1" style="padding-bottom: 1.5pt; text-align: right">8.76</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: justify; padding-bottom: 1.5pt"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20211001__20220930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zWtIckfQmqN8" title="Expiry date">October 1, 2031</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20220930_zfdld7W6IVci" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants">1,097,096</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: justify; padding-bottom: 2.5pt"> </td></tr> </table>

24739

23.65

2023-11-04

864024

12.60

2027-03-29

208333

8.76

2031-10-01

1097096

22059

202009

0.0098

P2Y

1.5302

178509

<p id="xdx_897_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zohIUNNTUBr1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at September 30, 2022 and November 4, 2021: SCHEDULE OF VALUATION OF WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49B_20211001__20220930_zri5YU20J1t3" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20211103__20211104_zEdZFfA3KdX8" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30,2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">November 4, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_40B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_hus-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zvnfFouQMzmd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3.79</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.98</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcCIljjceJJl" title="Expected life of options">1 Year</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zOfZ538k78t6" title="Expected life of options">2 Years</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_hus-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zco7zbcwEuV9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135.59</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153.02</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dpxL_uPure_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxMLcAMTTuT5" title="Dividend rate::XDX::0">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dpxL_uPure_c20211103__20211104__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zz1mamWVL1Za" title="Dividend rate::XDX::0">Nil</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--SharePrice_iE_hus-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zgib37uTfubf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11.45</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

0.0379

0.0098

P1Y

P2Y

1.3559

1.5302

1.46

11.45

13. INCOME TAXES SCHEDULE OF RECONCILIATION OF INCOME TAX <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20211001__20220930_zlFEM0tJ8KZ8" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201001__20210930_zosCN1sWkPM6" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLoss_zv1NQHVvRuW6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify; padding-bottom: 2.5pt">Loss before income taxes</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">(2,714,616</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">(1,253,242</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_404_ecustom--ExpectedIncomeTaxRecoveryAtStatutoryRates_zkU1fJtCJqS2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected income tax recovery at statutory rates</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(407,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(188,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxExpenseBenefit_zhIKqHXaj7Zk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Provincial income tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(244,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(137,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_zwt03nlgZ5Z4" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Effect of income taxes from US operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(42,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_iN_di_zp6LmWrX17dc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Change in statutory, foreign tax, foreign exchange rates and other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(59,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--PermanentDifferences_zXOm9HA7h4y3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions_iN_di_zqnR9qxkMfi1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Adjustment to prior years provision versus statutory tax returns</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(53,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(11,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_zYUsR87W0QR2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Change in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">675,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">401,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredIncomeTaxExpenseBenefit_z7vjW22xrgO4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_892_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zjFjNQahDBPf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">Components of the Company’s pre-tax loss and income taxes are as follows: SCHEDULE OF PRE TAX LOSS AND INCOME TAXES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Loss for the year</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: justify">Canada</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_ztYfYgOV8zq2" style="width: 16%; text-align: right" title="Loss for the year">(2,030,281</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--NetIncomeLoss_c20201001__20210930__srt--StatementGeographicalAxis__country--CA_zCW99nKGqMj1" style="width: 16%; text-align: right" title="Loss for the year">(1,144,350</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zaVY77GaAo3j" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(684,335</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20201001__20210930__srt--StatementGeographicalAxis__country--US_z002CcvJPqc8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(108,892</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--NetIncomeLoss_c20211001__20220930_zAOm1oFCMPBa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(2,714,616</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_982_eus-gaap--NetIncomeLoss_c20201001__20210930_zyGqKXhnTvvh" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(1,253,242</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected income tax (recovery)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_zWIJyRx60mt6" style="text-align: right" title="Expected income tax (recovery)">(549,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--ExpectedIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--CA_zinpQxBHQzw5" style="text-align: right" title="Expected income tax (recovery)">(309,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zIOF8NQ96Kg7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(102,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_ecustom--ExpectedIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--US_zymCpxIOoqZf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(29,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98B_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930_zD4q3eYDnR49" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(651,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_ecustom--ExpectedIncomeTaxRecovery_c20201001__20210930_zlRwp0HMgrG6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(338,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Deferred income tax (recovery)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_z5KPYPwXGyda" style="text-align: right" title="Deferred income tax (recovery)">548,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_ecustom--DeferredIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--CA_zdEby9i88RB2" style="text-align: right" title="Deferred income tax (recovery)">309,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zv5X5VgzZNzd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">103,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--DeferredIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--US_zgFR7HTwwYb7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">29,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98B_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930_zVEX3TDenEoj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">651,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98D_ecustom--DeferredIncomeTaxRecovery_c20201001__20210930_zMj8tMh0y379" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">338,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20211001__20220930_z9Y4biWttwZe" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20201001__20210930_zagztNr0yr88" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_895_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zqNSbxfKo0al" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">The significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zNcjxvSveTKf" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20210930_zoNSB4v4CtOi" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_406_ecustom--DeferredTaxAssetsNonCapitalLossCarryforwards_iI_maDTAGzuR7_zHmoUV8vJ7vh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Tax loss carryforwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,342,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">780,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_iNI_di_msDTAGzuR7_zCSbxiB0jOOa" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(74,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--FinancingFees_iI_maDTAGzuR7_z3gpiq7FuMJd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Financing fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">216,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">38,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzuR7_maDTANzJSk_zWsrXnqxE7Fd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> Total gross deferred tax assets </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,484,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">809,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANzJSk_zdSWSTM2xuLk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Deferred tax assets valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,484,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(809,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzJSk_z5JPiOwHq1Rd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Net deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The significant components of the Company’s temporary differences include unamortized financing fees and tax loss carryforwards. The valuation allowance reduces the deferred tax assets to amounts that are, in management’s assessment, more likely than not to be realized. For the years ended September 30, 2022 and 2021, the Company had financing fees of $801,000 and $140,000, respectively, with expiration dates between 2042 and 2047. The Company also had tax loss carryforwards of approximately $4,832,000 in Canada and the United States. For the years ended September 30, 2022 and 2021, the Canada tax losses totaled $4,028,000 and $2,707,000, respectively, with expiration dates ranging from 2037 to 2042 and 2037 to 2041, respectively. The United States tax losses for the years ended September 30, 2022 and 2021 totaled $804,000 and $213,000, respectively, and had no expiration dates.

SCHEDULE OF RECONCILIATION OF INCOME TAX <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20211001__20220930_zlFEM0tJ8KZ8" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201001__20210930_zosCN1sWkPM6" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLoss_zv1NQHVvRuW6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify; padding-bottom: 2.5pt">Loss before income taxes</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">(2,714,616</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">(1,253,242</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_404_ecustom--ExpectedIncomeTaxRecoveryAtStatutoryRates_zkU1fJtCJqS2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected income tax recovery at statutory rates</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(407,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(188,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxExpenseBenefit_zhIKqHXaj7Zk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Provincial income tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(244,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(137,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_zwt03nlgZ5Z4" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Effect of income taxes from US operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(42,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_iN_di_zp6LmWrX17dc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Change in statutory, foreign tax, foreign exchange rates and other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(59,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--PermanentDifferences_zXOm9HA7h4y3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions_iN_di_zqnR9qxkMfi1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Adjustment to prior years provision versus statutory tax returns</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(53,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(11,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_zYUsR87W0QR2" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Change in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">675,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">401,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredIncomeTaxExpenseBenefit_z7vjW22xrgO4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

-2714616

-1253242

-407000 -188000

-244000

-137000

-42000

-7000

32000

59000

103000 1000

53000

11000

675000

401000

<p id="xdx_892_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_zjFjNQahDBPf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">Components of the Company’s pre-tax loss and income taxes are as follows: SCHEDULE OF PRE TAX LOSS AND INCOME TAXES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Loss for the year</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: justify">Canada</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_ztYfYgOV8zq2" style="width: 16%; text-align: right" title="Loss for the year">(2,030,281</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--NetIncomeLoss_c20201001__20210930__srt--StatementGeographicalAxis__country--CA_zCW99nKGqMj1" style="width: 16%; text-align: right" title="Loss for the year">(1,144,350</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zaVY77GaAo3j" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(684,335</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20201001__20210930__srt--StatementGeographicalAxis__country--US_z002CcvJPqc8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(108,892</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--NetIncomeLoss_c20211001__20220930_zAOm1oFCMPBa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(2,714,616</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_982_eus-gaap--NetIncomeLoss_c20201001__20210930_zyGqKXhnTvvh" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(1,253,242</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected income tax (recovery)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_zWIJyRx60mt6" style="text-align: right" title="Expected income tax (recovery)">(549,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--ExpectedIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--CA_zinpQxBHQzw5" style="text-align: right" title="Expected income tax (recovery)">(309,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zIOF8NQ96Kg7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(102,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_ecustom--ExpectedIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--US_zymCpxIOoqZf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(29,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98B_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930_zD4q3eYDnR49" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(651,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_ecustom--ExpectedIncomeTaxRecovery_c20201001__20210930_zlRwp0HMgrG6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(338,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Deferred income tax (recovery)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_z5KPYPwXGyda" style="text-align: right" title="Deferred income tax (recovery)">548,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_ecustom--DeferredIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--CA_zdEby9i88RB2" style="text-align: right" title="Deferred income tax (recovery)">309,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zv5X5VgzZNzd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">103,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--DeferredIncomeTaxRecovery_c20201001__20210930__srt--StatementGeographicalAxis__country--US_zgFR7HTwwYb7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">29,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98B_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930_zVEX3TDenEoj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">651,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98D_ecustom--DeferredIncomeTaxRecovery_c20201001__20210930_zMj8tMh0y379" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">338,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20211001__20220930_z9Y4biWttwZe" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20201001__20210930_zagztNr0yr88" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

-2030281

-1144350

-684335

-108892

-2714616

-1253242

-549000 -309000 -102000 -29000 -651000 -338000 548000 309000 103000 29000 651000 338000

<p id="xdx_895_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zqNSbxfKo0al" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.4in; text-align: justify; text-indent: 0pt">The significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 94%; margin-left: 0.4in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zNcjxvSveTKf" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20210930_zoNSB4v4CtOi" style="border-bottom: Black 1.5pt solid; text-align: right">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_406_ecustom--DeferredTaxAssetsNonCapitalLossCarryforwards_iI_maDTAGzuR7_zHmoUV8vJ7vh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Tax loss carryforwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,342,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">780,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_iNI_di_msDTAGzuR7_zCSbxiB0jOOa" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(74,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--FinancingFees_iI_maDTAGzuR7_z3gpiq7FuMJd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Financing fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">216,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">38,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzuR7_maDTANzJSk_zWsrXnqxE7Fd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> Total gross deferred tax assets </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,484,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">809,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANzJSk_zdSWSTM2xuLk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Deferred tax assets valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,484,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(809,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANzJSk_z5JPiOwHq1Rd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Net deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1342000 780000

74000

9000

216000 38000

1484000

809000

1484000

809000

801000

140000

4832000 4028000 2707000 with expiration dates ranging from 2037 to 2042 and 2037 to 2041 804000 213000

14. SEGMENT INFORMATION Operating segments The Company operates in a single reportable segment – the acquisition, development and production of oil and gas properties in the United States. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <div style="margin-left: auto; margin-right: auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div>

15. SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) Supplemental unaudited information regarding Permex’s oil and gas activities is presented in this note. All of Permex’s reserves are located within the U.S. Costs Incurred in Oil and Gas Producing Activities SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_zOaDwEWIsU5h" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_499_20201001__20210930_zaQJQzzplXMa" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--AcquisitionCosts_maCCOUPzDqm_zPigx3bYjgr4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Acquisition of proved properties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,699,215</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--AcquisitionCostsUnprovedProperties_maCCOUPzDqm_zkt7MikxWEc5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Acquisition of unproved properties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DevelopmentCosts_maCCOUPzDqm_zMa9oFelxsjf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,676,668</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,403</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ExplorationCosts_maCCOUPzDqm_zZyKuf4rEBA1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Exploration costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization_iT_mtCCOUPzDqm_zfpu2FmeLqc9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total costs incurred</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,676,668</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,708,618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Results of Operations from Oil and Gas Producing Activities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_z3uQFnsTI5r4" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_499_20201001__20210930_z5d7l34Clle7" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40C_eus-gaap--ResultsOfOperationsRevenueOther_zpMRWVZyXLvk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Oil and gas revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">815,391</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">46,703</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--ProductionCosts_iN_di_zzjPrE2f6Wl4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(829,194</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(59,671</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--ExplorationExpense_iN_di_z4lfXnNbquHc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Exploration expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ResultsOfOperationsDepreciationDepletionAndAmortizationAndValuationProvisions_iN_di_zSRMwEDmJZwf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depletion, depreciation and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(99,855</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(52,439</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--ImpairmentOfOilAndGasProperties_iN_di_zMgF99dXG3D5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Impairment of oil and gas properties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--ResultsOfOperationsExpensesFromOilAndGasProducingActivities_iNT_di_zIWVjY3hNsg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Result of oil and gas producing operations before income taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(113,658</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(65,407</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--ResultsOfOperationsIncomeTaxExpense_iN_di_z6Icl0Y9I0L" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Provision for income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ResultsOfOperationsOilAndGasProducingActivitiesNetIncomeExcludingCorporateOverheadAndInterestCosts_iT_zGYfEc3IVt0c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Results of oil and gas producing activities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(113,658</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(65,407</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <div style="margin-left: auto; margin-right: auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in">15.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) (cont’d…)</td></tr> </table> Proved Reserves The Company’s proved oil and natural gas reserves have been estimated by the certified independent engineering firm, MKM Engineering. Proved reserves are the estimated quantities that geologic and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are the quantities expected to be recovered through existing wells with existing equipment and operating methods when the estimates were made. Due to the inherent uncertainties and the limited nature of reservoir data, such estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production of these reserves may be substantially different from the original estimate. Revisions result primarily from new information obtained from development drilling and production history; acquisitions of oil and natural gas properties; and changes in economic factors. Our proved reserves are summarized in the table below: SCHEDULE OF PROVED RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Oil (Barrels)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Natural Gas (Mcf)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">BOE (Barrels)</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved developed and undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%">September 30, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20201001__20210930_zPujogqFShS7" style="width: 14%; text-align: right" title="Beginning balance">3,706,360</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20201001__20210930_zcND0P5ih7kb" style="width: 14%; text-align: right" title="Beginning balance">740,180</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20201001__20210930_zCwgdmDsPYrb" style="width: 14%; text-align: right" title="Beginning balance, BOE (Barrels)">3,829,723</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F41_zT662621NrM6">Revisions (1)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20201001__20210930_fKDEp_zRm2yEZoHblj" style="text-align: right" title="Revisions">(88,263</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20201001__20210930_fKDEp_zc0yPGNR1z4" style="text-align: right" title="Revisions">38,640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20201001__20210930_fKDEp_zhqhLiR8lON8" style="text-align: right" title="Revisions, BOE (Barrels)">(81,823</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F40_zrCg6jdosJhf" style="text-align: left">Purchase of proved reserves (2)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20201001__20210930_fKDIp_zRdvIYElEog3" style="text-align: right" title="Purchase of proved reserves">5,408,560</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20201001__20210930_fKDIp_zhLWk7vEL917" style="text-align: right" title="Purchase of proved reserves">2,859,590</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReserveImprovedRecoveryEnergy_uBOE_c20201001__20210930_fKDIp_zrnCX9GWOF0f" style="text-align: right" title="Purchase of proved reserves">5,885,158</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F4D_zHfwuafwDOsd">Sale of reserves (3)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20201001__20210930_fKDMp_zByTNsrycqxf" style="text-align: right" title="Sale of reserves">(2,826,290</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20201001__20210930_fKDMp_z83d1LlLKKGf" style="text-align: right" title="Sale of reserves">(618,650</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20201001__20210930_fKDMp_zzUDMdnFn5Ic" style="text-align: right" title="Sale of reserves, BOE (Barrels)">(2,929,398</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20201001__20210930_zKIzA8pcYcY6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(947</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20201001__20210930_zeUHj7rD0ck3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(1,410</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20201001__20210930_zQFW9TD6pat2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(1,182</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20211001__20220930_ztZLTdeaho49" style="text-align: right" title="Beginning balance">6,199,420</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20211001__20220930_zyUC0Mk273a" style="text-align: right" title="Beginning balance">3,018,350</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20211001__20220930_z4xTcrc4kTSf" style="text-align: right" title="Beginning balance, BOE (Barrels)">6,702,478</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Revisions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20211001__20220930_fKDMp_zShgDy5MRgX1" style="text-align: right" title="Revisions">48,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20211001__20220930_fKDMp_z2xHQfmntMY6" style="text-align: right" title="Revisions">(5,613</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20211001__20220930_fKDMp_zZL4Mio4CxD5" style="text-align: right" title="Revisions, BOE (Barrels)">47,385</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase of proved reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20211001__20220930_fKDQp_zZCk2NqNpiJi" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20211001__20220930_fKDQp_zh6PWR9QTZs5" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservePurchaseOfMineralInPlaceEnergy_uBOE_c20211001__20220930_fKDQp_zO6oaPO48bIj" style="text-align: right" title="Purchase of proved reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sale reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20211001__20220930_fKDUp_zJo04qeobTR2" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20211001__20220930_fKDUp_zyRiEO1PxF2k" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20211001__20220930_fKDUp_znChod6iFKIf" style="text-align: right" title="Sale reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20211001__20220930_zYs6hHQ9bpz7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(10,670</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20211001__20220930_zoE63umnUN8b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(11,567</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20211001__20220930_zuNLcLhh0rxc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(12,598</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uBarrels_c20211001__20220930_zAgTTF3LxDvg" style="text-align: right" title="Ending balance">6,237,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uNaturalGas_c20211001__20220930_zr22MiSv42ih" style="text-align: right" title="Ending balance">3,001,170</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iE_uBOE_c20211001__20220930_zfOEcrYXXGq4" style="text-align: right" title="Ending balance, BOE (Barrels)">6,737,265</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Proved developed reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20200930_zKb3cji7yg27" style="text-align: right" title="Proved developed reserves">549,390</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20200930_zv2HOksXdmR5" style="text-align: right" title="Proved developed reserves">82,430</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20200930_zf4vBuZJjfq5" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">563,128</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20210930_zPAmJoZJwDx5" style="text-align: right" title="Proved developed reserves">587,450</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20210930_zAM3nJC3hzmb" style="text-align: right" title="Proved developed reserves">411,910</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20210930_z9VxltwtC5ai" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">656,102</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20220930_zTGxRNftlaT4" style="text-align: right" title="Proved developed reserves">1,153,870</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20220930_zgmUiseKO2nc" style="text-align: right" title="Proved developed reserves">864,770</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20220930_zmGKcfHf5oFg" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">1,297,998</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20200930_zXj2YGahW7p" style="text-align: right" title="Proved undeveloped reserves">3,156,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20200930_zKMOoFbhwQDc" style="text-align: right" title="Proved undeveloped reserves">657,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20200930_zplosNb1Fu3g" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">3,266,595</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2019</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20190930_zPSCuokv0sRk" style="text-align: right" title="Proved undeveloped reserves">5,611,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20190930_zFln27ZehqY" style="text-align: right" title="Proved undeveloped reserves">2,606,440</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20190930_znB3LoAHFJW1" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">6,046,377</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20220930_zRdl8H21A2Dd" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">5,083,200</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20220930_zWR0Vv8w4s0k" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">2,136,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20220930_zAcB5eeFWRKk" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">5,439,267</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td id="xdx_F05_zULRy1dcocIe" style="width: 2%">(1)</td> <td id="xdx_F12_zhmfguAXuhXc" style="width: 98%">Revisions in 2021 included <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBST1ZFRCBSRVNFUlZFUyAoRGV0YWlscykgKFBhcmFudGhldGlhY2FsKQA_" id="xdx_90C_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OtherNonrenewableNaturalResourcesMember_zWxAHxw6gNrd">120,850 bbls in proved undeveloped reserves being reclassified as probable in the 2021 reserve report, net of other immaterial revisions in several properties.</td></tr> <tr style="vertical-align: top; text-align: left"> <td id="xdx_F09_zzjjDJrIAkE5">(2)</td> <td id="xdx_F1F_zdULOzHR91q2">During 2021, the Company purchased 1,246 net acres in Martin County, Texas.</td></tr> <tr style="vertical-align: top; text-align: left"> <td id="xdx_F0F_z44jeEfvxMXh">(3) </td> <td id="xdx_F15_zMtYXvZ9KMGk">During 2021, the Company sold ODC and Taylor properties.</td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <div style="margin-left: auto; margin-right: auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in">15.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) (cont’d…)</td></tr> </table> Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves The following information is based on the Company’s best estimate of the required data for the Standardized Measure of Discounted Future Net Cash Flows as of September 30, 2022 and September 30, 2021 in accordance with ASC 932, “Extractive Activities – Oil and Gas” which requires the use of a 10% discount rate. This information is not the fair market value, nor does it represent the expected present value of future cash flows of the Company’s proved oil and gas reserves. Future cash inflows for the years ended September 30, 2022 and September 30, 2021 were estimated as specified by the SEC through calculation of an average price based on the 12-month unweighted arithmetic average of the first-day-of-the-month price for the period from October through September during each respective fiscal year. The resulting net cash flow are reduced to present value by applying a 10% discount factor. SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220930_zR92zHabg40b" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20210930_zRbnpekInDC2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40C_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesCashInflows_iI_maFNCFRzWs3_z6aK5HK5LwBb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Future cash inflows</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">589,481,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">355,958,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesProductionCosts_iNI_di_msFNCFRzWs3_zzmcjz9wpkUd" style="vertical-align: bottom; background-color: White"> <td id="xdx_F4B_zJTjEYHqFhJd" style="text-align: left">Future production costs(1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(91,630,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(69,683,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesDevelopmentCosts_iNI_di_msFNCFRzWs3_zdO6a16uTZKk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,700,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,700,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesIncomeTaxExpense_iNI_di_msFNCFRzWs3_zqJ8aX8V6Ov8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Future income tax expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(113,873,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(57,206,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesNetCashFlows_iTI_mtFNCFRzWs3_maSMODFzWnU_zIUtr8f3b5md" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future net cash flows</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">312,278,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">157,369,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesTenPercentAnnualDiscountForEstimatedTimingOfCashFlows_iNI_di_msSMODFzWnU_zDQtwsviw2aj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">10% annual discount for estimated timing of cash flows</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(167,549,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(84,100,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iTI_mtSMODFzWnU_zxNN4HMROxbf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the fiscal year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">73,269,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations.</td></tr> </table> Average hydrocarbon prices are set forth in the table below. SCHEDULE OF AVERAGE HYDROCARBON PRICES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"></td><td style="text-align: right"> </td> <td colspan="2" style="text-align: right">Average Price</td><td style="text-align: right"> </td><td style="text-align: right"> </td> <td colspan="2" style="text-align: right">Natural</td><td style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">Crude Oil (Bbl)</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">Gas (Mcf)</td><td style="padding-bottom: 1.5pt; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Year ended September 30, 2020 (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20200930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_z1Ejs8VBwuE5" style="width: 16%; text-align: right" title="Average Price">40.30</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20200930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zgHcRciv4qc9" style="width: 16%; text-align: right" title="Average Price">1.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Year ended September 30, 2021 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_znge9uACHNx1" style="text-align: right" title="Average Price">55.98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zOlcjEnJULVf" style="text-align: right" title="Average Price">2.95</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Year ended September 30, 2022 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_zuvLOR7kTJea" style="text-align: right" title="Average Price">91.72</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zvpyrHx9E4dd" style="text-align: right" title="Average Price">5.79</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year.</td> </tr> </table> Future production and development costs, which include dismantlement and restoration expense, are computed by estimating the expenditures to be incurred in developing and producing the Company’s proved crude oil and natural gas reserves at the end of the year, based on year-end costs, and assuming continuation of existing economic conditions. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2022 AND 2021 <div style="margin-left: auto; margin-right: auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in">15.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) (cont’d…)</td></tr> </table> Sources of Changes in Discounted Future Net Cash Flows Principal changes in the aggregate standardized measure of discounted future net cash flows attributable to the Company’s proved crude oil and natural gas reserves, as required by ASC 932, at fiscal year-end are set forth in the table below. SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211001__20220930_zzWwh4oj22o7" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201001__20210930_zffuuujpSmTc" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iS_z5gyyXwys369" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Standardized measure of discounted future net cash flows at the beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">73,269,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">20,797,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_esrt--ExtensionsDiscoveriesAdditionsAndImprovedRecoveryLessRelatedCosts_zaCEp4bCG0T9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Extensions, discoveries and improved recovery, less related costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--DecreaseDueToSalesOfMineralsInPlace_iN_di_zbmm6dGr7Ugk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(62,682,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_esrt--IncreaseDueToPurchasesOfMineralsInPlace_z6kahCczJSqf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">125,927,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--PreviouslyEstimatedDevelopmentCostIncurred_iN_di_z1FSKvnb2YH" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Revisions of previous quantity estimates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,674,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,751,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_esrt--NetIncreaseDecreaseInSalesAndTransferPricesAndProductionCosts_znaZqNtMLO5g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net changes in prices and production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88,333,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,573,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowOfProvedOilAndGasReservesOther_ziCbPcBMUHh8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Accretion of discount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,077,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,498,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_esrt--SalesAndTransfersOfOilAndGasProducedNetOfProductionCosts_z5hem9QDnGzk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales of oil produced, net of production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(49,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_esrt--IncreaseDecreaseInEstimatedFutureDevelopmentCosts_iN_di_z9KYfYPtav32" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Changes in future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">911,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(21,339,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--IncreaseDecreaseInTimingOfFutureProduction_iN_di_z1JusOvTuh8i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Changes in timing of future production</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,099,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,580,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_esrt--IncreaseDecreaseInFutureIncomeTaxExpenseEstimatesOnFutureCashFlowsRelatedToProvedOilAndGasReserves_iN_di_zFZ3YKWnB4y1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Net changes in income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26,387,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,187,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iE_zvvGdYOjL76i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">73,269,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_zOaDwEWIsU5h" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_499_20201001__20210930_zaQJQzzplXMa" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--AcquisitionCosts_maCCOUPzDqm_zPigx3bYjgr4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Acquisition of proved properties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,699,215</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--AcquisitionCostsUnprovedProperties_maCCOUPzDqm_zkt7MikxWEc5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Acquisition of unproved properties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DevelopmentCosts_maCCOUPzDqm_zMa9oFelxsjf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,676,668</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,403</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ExplorationCosts_maCCOUPzDqm_zZyKuf4rEBA1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Exploration costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization_iT_mtCCOUPzDqm_zfpu2FmeLqc9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total costs incurred</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,676,668</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,708,618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Results of Operations from Oil and Gas Producing Activities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_z3uQFnsTI5r4" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_499_20201001__20210930_z5d7l34Clle7" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40C_eus-gaap--ResultsOfOperationsRevenueOther_zpMRWVZyXLvk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Oil and gas revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">815,391</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">46,703</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--ProductionCosts_iN_di_zzjPrE2f6Wl4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(829,194</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(59,671</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--ExplorationExpense_iN_di_z4lfXnNbquHc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Exploration expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--ResultsOfOperationsDepreciationDepletionAndAmortizationAndValuationProvisions_iN_di_zSRMwEDmJZwf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depletion, depreciation and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(99,855</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(52,439</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--ImpairmentOfOilAndGasProperties_iN_di_zMgF99dXG3D5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Impairment of oil and gas properties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--ResultsOfOperationsExpensesFromOilAndGasProducingActivities_iNT_di_zIWVjY3hNsg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Result of oil and gas producing operations before income taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(113,658</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(65,407</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--ResultsOfOperationsIncomeTaxExpense_iN_di_z6Icl0Y9I0L" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Provision for income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ResultsOfOperationsOilAndGasProducingActivitiesNetIncomeExcludingCorporateOverheadAndInterestCosts_iT_zGYfEc3IVt0c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Results of oil and gas producing activities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(113,658</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(65,407</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

3699215

1676668

9403

1676668

3708618

815391

46703

829194

59671

99855

52439

113658 65407

-113658

-65407

Our proved reserves are summarized in the table below: SCHEDULE OF PROVED RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Oil (Barrels)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Natural Gas (Mcf)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">BOE (Barrels)</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved developed and undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%">September 30, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20201001__20210930_zPujogqFShS7" style="width: 14%; text-align: right" title="Beginning balance">3,706,360</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20201001__20210930_zcND0P5ih7kb" style="width: 14%; text-align: right" title="Beginning balance">740,180</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20201001__20210930_zCwgdmDsPYrb" style="width: 14%; text-align: right" title="Beginning balance, BOE (Barrels)">3,829,723</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F41_zT662621NrM6">Revisions (1)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20201001__20210930_fKDEp_zRm2yEZoHblj" style="text-align: right" title="Revisions">(88,263</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20201001__20210930_fKDEp_zc0yPGNR1z4" style="text-align: right" title="Revisions">38,640</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20201001__20210930_fKDEp_zhqhLiR8lON8" style="text-align: right" title="Revisions, BOE (Barrels)">(81,823</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_F40_zrCg6jdosJhf" style="text-align: left">Purchase of proved reserves (2)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20201001__20210930_fKDIp_zRdvIYElEog3" style="text-align: right" title="Purchase of proved reserves">5,408,560</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20201001__20210930_fKDIp_zhLWk7vEL917" style="text-align: right" title="Purchase of proved reserves">2,859,590</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReserveImprovedRecoveryEnergy_uBOE_c20201001__20210930_fKDIp_zrnCX9GWOF0f" style="text-align: right" title="Purchase of proved reserves">5,885,158</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F4D_zHfwuafwDOsd">Sale of reserves (3)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20201001__20210930_fKDMp_zByTNsrycqxf" style="text-align: right" title="Sale of reserves">(2,826,290</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20201001__20210930_fKDMp_z83d1LlLKKGf" style="text-align: right" title="Sale of reserves">(618,650</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20201001__20210930_fKDMp_zzUDMdnFn5Ic" style="text-align: right" title="Sale of reserves, BOE (Barrels)">(2,929,398</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20201001__20210930_zKIzA8pcYcY6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(947</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20201001__20210930_zeUHj7rD0ck3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(1,410</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20201001__20210930_zQFW9TD6pat2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(1,182</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20211001__20220930_ztZLTdeaho49" style="text-align: right" title="Beginning balance">6,199,420</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20211001__20220930_zyUC0Mk273a" style="text-align: right" title="Beginning balance">3,018,350</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20211001__20220930_z4xTcrc4kTSf" style="text-align: right" title="Beginning balance, BOE (Barrels)">6,702,478</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Revisions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20211001__20220930_fKDMp_zShgDy5MRgX1" style="text-align: right" title="Revisions">48,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20211001__20220930_fKDMp_z2xHQfmntMY6" style="text-align: right" title="Revisions">(5,613</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20211001__20220930_fKDMp_zZL4Mio4CxD5" style="text-align: right" title="Revisions, BOE (Barrels)">47,385</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase of proved reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20211001__20220930_fKDQp_zZCk2NqNpiJi" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20211001__20220930_fKDQp_zh6PWR9QTZs5" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservePurchaseOfMineralInPlaceEnergy_uBOE_c20211001__20220930_fKDQp_zO6oaPO48bIj" style="text-align: right" title="Purchase of proved reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sale reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20211001__20220930_fKDUp_zJo04qeobTR2" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20211001__20220930_fKDUp_zyRiEO1PxF2k" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20211001__20220930_fKDUp_znChod6iFKIf" style="text-align: right" title="Sale reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20211001__20220930_zYs6hHQ9bpz7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(10,670</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20211001__20220930_zoE63umnUN8b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(11,567</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20211001__20220930_zuNLcLhh0rxc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(12,598</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uBarrels_c20211001__20220930_zAgTTF3LxDvg" style="text-align: right" title="Ending balance">6,237,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uNaturalGas_c20211001__20220930_zr22MiSv42ih" style="text-align: right" title="Ending balance">3,001,170</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iE_uBOE_c20211001__20220930_zfOEcrYXXGq4" style="text-align: right" title="Ending balance, BOE (Barrels)">6,737,265</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Proved developed reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20200930_zKb3cji7yg27" style="text-align: right" title="Proved developed reserves">549,390</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20200930_zv2HOksXdmR5" style="text-align: right" title="Proved developed reserves">82,430</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20200930_zf4vBuZJjfq5" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">563,128</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20210930_zPAmJoZJwDx5" style="text-align: right" title="Proved developed reserves">587,450</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20210930_zAM3nJC3hzmb" style="text-align: right" title="Proved developed reserves">411,910</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20210930_z9VxltwtC5ai" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">656,102</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20220930_zTGxRNftlaT4" style="text-align: right" title="Proved developed reserves">1,153,870</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20220930_zgmUiseKO2nc" style="text-align: right" title="Proved developed reserves">864,770</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20220930_zmGKcfHf5oFg" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">1,297,998</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2020</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20200930_zXj2YGahW7p" style="text-align: right" title="Proved undeveloped reserves">3,156,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20200930_zKMOoFbhwQDc" style="text-align: right" title="Proved undeveloped reserves">657,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20200930_zplosNb1Fu3g" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">3,266,595</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2019</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20190930_zPSCuokv0sRk" style="text-align: right" title="Proved undeveloped reserves">5,611,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20190930_zFln27ZehqY" style="text-align: right" title="Proved undeveloped reserves">2,606,440</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20190930_znB3LoAHFJW1" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">6,046,377</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20220930_zRdl8H21A2Dd" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">5,083,200</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20220930_zWR0Vv8w4s0k" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">2,136,400</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20220930_zAcB5eeFWRKk" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">5,439,267</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td id="xdx_F05_zULRy1dcocIe" style="width: 2%">(1)</td> <td id="xdx_F12_zhmfguAXuhXc" style="width: 98%">Revisions in 2021 included <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBST1ZFRCBSRVNFUlZFUyAoRGV0YWlscykgKFBhcmFudGhldGlhY2FsKQA_" id="xdx_90C_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OtherNonrenewableNaturalResourcesMember_zWxAHxw6gNrd">120,850 bbls in proved undeveloped reserves being reclassified as probable in the 2021 reserve report, net of other immaterial revisions in several properties.</td></tr> <tr style="vertical-align: top; text-align: left"> <td id="xdx_F09_zzjjDJrIAkE5">(2)</td> <td id="xdx_F1F_zdULOzHR91q2">During 2021, the Company purchased 1,246 net acres in Martin County, Texas.</td></tr> <tr style="vertical-align: top; text-align: left"> <td id="xdx_F0F_z44jeEfvxMXh">(3) </td> <td id="xdx_F15_zMtYXvZ9KMGk">During 2021, the Company sold ODC and Taylor properties.</td></tr> </table> 3706360 740180 3829723 -88263 38640 -81823 5408560 2859590 5885158 2826290 618650 2929398 947 1410 1182 6199420 3018350 6702478 48320 -5613 47385 10670 11567 12598 6237070 3001170 6737265 549390 82430 563128 587450 411910 656102 1153870 864770 1297998 3156970 657750 3266595 5611970 2606440 6046377 5083200 2136400 5439267 120850

1246

SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220930_zR92zHabg40b" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20210930_zRbnpekInDC2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40C_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesCashInflows_iI_maFNCFRzWs3_z6aK5HK5LwBb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Future cash inflows</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">589,481,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">355,958,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesProductionCosts_iNI_di_msFNCFRzWs3_zzmcjz9wpkUd" style="vertical-align: bottom; background-color: White"> <td id="xdx_F4B_zJTjEYHqFhJd" style="text-align: left">Future production costs(1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(91,630,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(69,683,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesDevelopmentCosts_iNI_di_msFNCFRzWs3_zdO6a16uTZKk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,700,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,700,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesIncomeTaxExpense_iNI_di_msFNCFRzWs3_zqJ8aX8V6Ov8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Future income tax expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(113,873,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(57,206,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesNetCashFlows_iTI_mtFNCFRzWs3_maSMODFzWnU_zIUtr8f3b5md" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future net cash flows</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">312,278,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">157,369,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesTenPercentAnnualDiscountForEstimatedTimingOfCashFlows_iNI_di_msSMODFzWnU_zDQtwsviw2aj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">10% annual discount for estimated timing of cash flows</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(167,549,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(84,100,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iTI_mtSMODFzWnU_zxNN4HMROxbf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the fiscal year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">73,269,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations.</td></tr> </table> 589481000 355958000 91630000 69683000 71700000 71700000 113873000 57206000 312278000 157369000 167549000 84100000 144729000 73269000

Average hydrocarbon prices are set forth in the table below. SCHEDULE OF AVERAGE HYDROCARBON PRICES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"></td><td style="text-align: right"> </td> <td colspan="2" style="text-align: right">Average Price</td><td style="text-align: right"> </td><td style="text-align: right"> </td> <td colspan="2" style="text-align: right">Natural</td><td style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">Crude Oil (Bbl)</td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">Gas (Mcf)</td><td style="padding-bottom: 1.5pt; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Year ended September 30, 2020 (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20200930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_z1Ejs8VBwuE5" style="width: 16%; text-align: right" title="Average Price">40.30</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20200930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zgHcRciv4qc9" style="width: 16%; text-align: right" title="Average Price">1.77</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Year ended September 30, 2021 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_znge9uACHNx1" style="text-align: right" title="Average Price">55.98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zOlcjEnJULVf" style="text-align: right" title="Average Price">2.95</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Year ended September 30, 2022 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_zuvLOR7kTJea" style="text-align: right" title="Average Price">91.72</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_ecustom--AverageHydrocarbonPrices_iI_uUSDPShares_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zvpyrHx9E4dd" style="text-align: right" title="Average Price">5.79</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.4in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year.</td> </tr> </table>

40.30 1.77 55.98 2.95 91.72 5.79 SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211001__20220930_zzWwh4oj22o7" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201001__20210930_zffuuujpSmTc" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iS_z5gyyXwys369" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Standardized measure of discounted future net cash flows at the beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">73,269,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">20,797,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_esrt--ExtensionsDiscoveriesAdditionsAndImprovedRecoveryLessRelatedCosts_zaCEp4bCG0T9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Extensions, discoveries and improved recovery, less related costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--DecreaseDueToSalesOfMineralsInPlace_iN_di_zbmm6dGr7Ugk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(62,682,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_esrt--IncreaseDueToPurchasesOfMineralsInPlace_z6kahCczJSqf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">125,927,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--PreviouslyEstimatedDevelopmentCostIncurred_iN_di_z1FSKvnb2YH" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Revisions of previous quantity estimates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,674,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,751,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_esrt--NetIncreaseDecreaseInSalesAndTransferPricesAndProductionCosts_znaZqNtMLO5g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net changes in prices and production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88,333,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,573,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowOfProvedOilAndGasReservesOther_ziCbPcBMUHh8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Accretion of discount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,077,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,498,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_esrt--SalesAndTransfersOfOilAndGasProducedNetOfProductionCosts_z5hem9QDnGzk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales of oil produced, net of production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(49,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_esrt--IncreaseDecreaseInEstimatedFutureDevelopmentCosts_iN_di_z9KYfYPtav32" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Changes in future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">911,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(21,339,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--IncreaseDecreaseInTimingOfFutureProduction_iN_di_z1JusOvTuh8i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Changes in timing of future production</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,099,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,580,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_esrt--IncreaseDecreaseInFutureIncomeTaxExpenseEstimatesOnFutureCashFlowsRelatedToProvedOilAndGasReserves_iN_di_zFZ3YKWnB4y1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Net changes in income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26,387,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,187,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iE_zvvGdYOjL76i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">73,269,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 73269000 20797000 62682000 125927000 -1674000 1751000 88333000 32573000 10077000 1498000 -49000 13000 -911000 21339000 3099000 2580000 26387000 19187000 144729000 73269000

764386

3300495

96615

137214

136400 317277

997401

3754986

145000 145000

10368436

8426776

166960

240796

11677797

12567558

3419106

1561344

38291

79866

104224

3498972

1703859

260394

236412

97023

140682

23500

3856389

2104453

2206014

1932604

14989912

14337739

5092665

4513194

-127413

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-8260415

7821408

10463105

11677797

12567558

60:1 reverse stock split

156716

258757

541459

577244

303

17965

18140

47813

157019

276722

559599

625057

235511

135467

762668

332346

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1053070

3014307

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120459

161988

7994

8238

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24714

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22337

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13723

1072760

1247531

3929106

2572367

-915741

-970809

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108

6000

4000

18000

16000

7900 7900

1026

2598

2208

27246

930 930

-136

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-22570

-152869

6148

82140

39400

149525

-909593

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-543234 -543234

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-888669

-3873341

-1797785

-0.74

-0.46

-1.99

-1.27

-0.74

-0.46

-1.99

-1.27

1964147

1932604

1943118

1411734

1964147

1932604

1943118

1411734

60:1 reverse stock split

1932604

14337739

4513512

-127413

-10680929

8042909

273410

781953

-129780

35919

-93861

543234 -543234

-909593

2206014

14989912

5092665

-127413

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7821408

1932604

14356535

4571535

-127413

-6454915

12345742

-18302

185

-888669

1932604

14338233

4571720

-127413

-7343584

11438956

60:1 share consolidation 60:1 share consolidation

1932604

14337739

4513194

-127413

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10463105

273410

781953

-129780

35919

-93861

543234 -543234

318

-3330107

2206014

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5092665

-127413

-12133756

7821408

1103010

8976747

2476717

-127413

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1103010

8976747

2476717

-127413

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5780252

829594

7303161

607170

7910331

-1941675

882972

-1058703

604861

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1932604

14338233

4571720

-127413

-7343584

11438956

1932604

14338233

4571720

-127413

-7343584

11438956

60:1 reverse stock split

-3330107

-1797785

23982

24714

120459

161988

1062

7900

14956

930

-22570

-152869

318

604861

-40599

173756

-180877

831968

1045347

695431

-10618 -5819 930

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1249704

201698

-1249704

-201698

8112340

781953

93861

1067374

38291

23700

3647

649801

7017619

-2536109

5340983

3300495

25806

764386

5366789

1692151 579153 1459667 93960

1182

18960

1. BACKGROUND Permex Petroleum Corporation (the “Company”) was incorporated on April 24, 2017 under the laws of British Columbia, Canada and maintains its head office at Suite 925, 2911 Turtle Creek Blvd, Dallas, Texas, 75219. Its registered office is located at 10th floor, 595 Howe Street, Vancouver, British Columbia, Canada, V6C 2T5. The Company is primarily engaged in the acquisition, development and production of oil and gas properties in the United States. The Company’s oil and gas interests are located in Texas and New Mexico, USA. The Company is listed on the Canadian Securities Exchange (the “CSE”) under the symbol “OIL” and on the OTCQB under the symbol “OILCF”. On October 26, 2022, the Company’s board of directors approved a reverse stock split of the Company’s issued and outstanding common stock at a 1 for 60 ratio, which was effective November 2, 2022. The par value and authorized shares of common stock were not adjusted as a result of the reverse stock split. All issued and outstanding common stock, options, and warrants to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented.

2017-04-24

2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2023 or for any other interim period or for any other future fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes for the fiscal year ended September 30, 2022. Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary, Permex Petroleum US Corporation. All intercompany balances and transactions have been eliminated. PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED) 2. Significant Accounting Policies (cont’d…) Going concern of operations These consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has incurred losses since inception in the amount of $12,133,756 and has not yet achieved profitable operations. The Company has been relying on equity financing and loans from related parties to fund its operation in the past. While the Company has been successful in securing financing to date, there can be no assurances that it will be able to do so in the future. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management plans to fund operations of the Company with its current working capital and through increasing production from its oil and gas leases. The Company also expects to raise additional funds through equity financings. There are no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available in the future. Management believes that this plan provides an opportunity for the Company to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (ii) the costs of site restoration when determining decommissioning liabilities; (iii) the useful lives of assets for the purposes of depletion and depreciation; (iv) petroleum and natural gas reserves; and (v) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. New accounting standards There are not currently any new or pending accounting standards that are expected to have a significant impact on the Company’s consolidated financial statements. PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED)

Basis of presentation The unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2023 or for any other interim period or for any other future fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes for the fiscal year ended September 30, 2022.

Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary, Permex Petroleum US Corporation. All intercompany balances and transactions have been eliminated. PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED) 2. Significant Accounting Policies (cont’d…)

Going concern of operations These consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has incurred losses since inception in the amount of $12,133,756 and has not yet achieved profitable operations. The Company has been relying on equity financing and loans from related parties to fund its operation in the past. While the Company has been successful in securing financing to date, there can be no assurances that it will be able to do so in the future. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management plans to fund operations of the Company with its current working capital and through increasing production from its oil and gas leases. The Company also expects to raise additional funds through equity financings. There are no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available in the future. Management believes that this plan provides an opportunity for the Company to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern.

-12133756

Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (ii) the costs of site restoration when determining decommissioning liabilities; (iii) the useful lives of assets for the purposes of depletion and depreciation; (iv) petroleum and natural gas reserves; and (v) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates.

New accounting standards There are not currently any new or pending accounting standards that are expected to have a significant impact on the Company’s consolidated financial statements.

3. REVENUE Revenue from contracts with customers is presented in “Oil and gas sales” on the Consolidated Statements of Loss. As of June 30, 2023 and September 30, 2022, receivable from contracts with customers, included in trade and other receivables, were $52,201 and $56,639, respectively. The following table present our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_znXapR49Rlx3" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B3_srt--StatementGeographicalAxis_custom--NMMember_zyQ7uBouys1i" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zJeBF1gdS3Vi" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Three months ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_437_c20230401__20230630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zrwBeXQyOnVg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">113,471</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">42,230</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">155,701</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_43A_c20230401__20230630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zAJHIVBCDCSd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,015</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,015</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_437_c20230401__20230630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zFflOQppxDw3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">114,486</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">42,230</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">156,716</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_zhKwOqSGC2q7" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B3_srt--StatementGeographicalAxis_custom--NMMember_zGcaQ9ArLjaj" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zJ0wtwzfDmv6" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Three months ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_43F_c20220401__20220630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zTjFdg29NLs8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">205,861</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">36,562</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242,423</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_432_c20220401__20220630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zHwikzHE6Puf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,334</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,334</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_439_c20220401__20220630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zWf5fbxnSVIa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">222,195</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">36,562</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">258,757</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_zWpjiVkCdUH6" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_custom--NMMember_z0xp38sXs7A3" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zxE5cU1kGtJ5" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Nine months ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_438_c20221001__20230630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zRZXfZ1KIa0b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">417,050</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">116,285</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">533,335</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_438_c20221001__20230630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zyNoEQTnA2id" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,124</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,124</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_431_c20221001__20230630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zi1j0PWDlh0h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">425,174</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">116,285</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">541,459</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BC_srt--StatementGeographicalAxis_custom--TXMember_zcY0WImzMy78" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_custom--NMMember_zHhOCbrsQECg" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_zNzfjyFJ62X7" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Nine months ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_435_c20211001__20220630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zy48IkTgj0g5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">445,769</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">84,809</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">530,578</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_432_c20211001__20220630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zAKXmMxJao27" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,666</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,666</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20211001__20220630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zoEdkQwqKG2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">492,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,809</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">577,244</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

52201

56639

The following table present our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_znXapR49Rlx3" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B3_srt--StatementGeographicalAxis_custom--NMMember_zyQ7uBouys1i" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zJeBF1gdS3Vi" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Three months ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_437_c20230401__20230630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zrwBeXQyOnVg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">113,471</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">42,230</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">155,701</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_43A_c20230401__20230630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zAJHIVBCDCSd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,015</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,015</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_437_c20230401__20230630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zFflOQppxDw3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">114,486</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">42,230</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">156,716</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_zhKwOqSGC2q7" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B3_srt--StatementGeographicalAxis_custom--NMMember_zGcaQ9ArLjaj" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zJ0wtwzfDmv6" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Three months ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_43F_c20220401__20220630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zTjFdg29NLs8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">205,861</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">36,562</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">242,423</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_432_c20220401__20220630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zHwikzHE6Puf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,334</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,334</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_439_c20220401__20220630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zWf5fbxnSVIa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">222,195</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">36,562</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">258,757</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B0_srt--StatementGeographicalAxis_custom--TXMember_zWpjiVkCdUH6" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_custom--NMMember_z0xp38sXs7A3" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zxE5cU1kGtJ5" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Nine months ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_438_c20221001__20230630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zRZXfZ1KIa0b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">417,050</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">116,285</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">533,335</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_438_c20221001__20230630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zyNoEQTnA2id" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,124</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,124</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_431_c20221001__20230630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zi1j0PWDlh0h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">425,174</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">116,285</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">541,459</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="display: none; vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BC_srt--StatementGeographicalAxis_custom--TXMember_zcY0WImzMy78" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_custom--NMMember_zHhOCbrsQECg" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_zNzfjyFJ62X7" style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Nine months ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_435_c20211001__20220630__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zy48IkTgj0g5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">445,769</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">84,809</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">530,578</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_432_c20211001__20220630__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zAKXmMxJao27" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,666</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,666</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20211001__20220630_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zoEdkQwqKG2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">492,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,809</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">577,244</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

113471

42230

155701

1015

114486

42230

156716

205861

36562

242423

16334

222195

36562

258757

417050

116285

533335

8124

425174

116285

541459

445769

84809

530578

46666

492435

84809

577244

4. CONCENTRATION OF CREDIT RISK The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash equivalents and trade receivables. The Company’s cash balances sometimes exceed the United States’ Federal Deposit Insurance Corporation insurance limits. The Company mitigates this risk by placing its cash and cash equivalents with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution. To date, the Company has not recognized any losses caused by uninsured balances. The majority of the Company’s receivable balance is concentrated in trade receivables, with a balance of $<span id="xdx_90D_eus-gaap--AccountsReceivableNetCurrent_iI_c20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_z6YkWTU3O1m" title="Trade receivables">94,380 as of June 30, 2023 (September 30, 2022 - $<span id="xdx_908_eus-gaap--AccountsReceivableNetCurrent_iI_c20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zkvNZhXd9Li7" title="Trade receivables">91,928). Two customers represented $<span id="xdx_904_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20221001__20230630__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_zBW6V393QNRe" title="Revenue">57,744 (<span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20221001__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_zGzvVdx08llb" title="Concentration risk percentage">61%) of the trade receivable balance. The Company routinely assesses the financial strength of its customers. The non-trade receivable balance consists of goods and services tax (“GST”) recoverable of $2,235. GST recoverable is due from the Canadian Government. It is in management’s opinion that the Company is not exposed to significant credit risk. To date, the Company has not recognized any credit losses on its receivables. PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED)

94380

91928

57744

0.61

2235

5. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230630_zLTCCr0TX7Wi" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zutzBdBL3t6a" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OilAndGasPropertyFullCostMethodGross_iI_maOAGPFzkEd_zFGdQQI1VGoi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Oil and natural gas properties, at cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">10,473,886</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">8,029,234</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ConstructionInProgressGross_iI_maOAGPFzkEd_ziDH3I5sBLee" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Construction in progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,306</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OilAndGasPropertyFullCostMethodDepletion_iNI_di_msOAGPFzkEd_z3NrLNAYXuGj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depletion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(267,941</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(184,658</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--OilAndGasPropertyFullCostMethodNet_iTI_mtOAGPFzkEd_maPPAENzIKW_ziCDIwG7A73l" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Oil and natural gas properties, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,205,945</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,304,882</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOther_iI_maPPAEOzS2v_zLkt8zG7Lude" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Other property and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">205,315</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">127,542</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOtherAccumulatedDepreciation_iNI_di_msPPAEOzS2v_zSJUFq5Ejz23" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(42,824</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,648</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentOtherNet_iTI_mtPPAEOzS2v_maPPAENzIKW_zVdSVaJIHtAd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">162,491</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">121,894</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzIKW_zR0Y7Xx3rFL3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,368,436</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,426,776</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depletion and depreciation expense was $120,459 and $161,988 for the nine month periods ended June 30, 2023 and June 30, 2022, respectively. Depletion and depreciation expense for the three month periods ended June 30, 2023 and June 30, 2022 was $37,286 and $73,093, respectively.

Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230630_zLTCCr0TX7Wi" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zutzBdBL3t6a" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OilAndGasPropertyFullCostMethodGross_iI_maOAGPFzkEd_zFGdQQI1VGoi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Oil and natural gas properties, at cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">10,473,886</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">8,029,234</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ConstructionInProgressGross_iI_maOAGPFzkEd_ziDH3I5sBLee" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Construction in progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,306</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OilAndGasPropertyFullCostMethodDepletion_iNI_di_msOAGPFzkEd_z3NrLNAYXuGj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depletion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(267,941</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(184,658</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--OilAndGasPropertyFullCostMethodNet_iTI_mtOAGPFzkEd_maPPAENzIKW_ziCDIwG7A73l" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Oil and natural gas properties, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,205,945</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,304,882</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOther_iI_maPPAEOzS2v_zLkt8zG7Lude" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Other property and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">205,315</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">127,542</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOtherAccumulatedDepreciation_iNI_di_msPPAEOzS2v_zSJUFq5Ejz23" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(42,824</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,648</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentOtherNet_iTI_mtPPAEOzS2v_maPPAENzIKW_zVdSVaJIHtAd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Other property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">162,491</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">121,894</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzIKW_zR0Y7Xx3rFL3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,368,436</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,426,776</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

10473886

8029234

460306

267941

184658

10205945

8304882

205315

127542

42824

5648

162491

121894

10368436

8426776

120459

161988

37286

73093

6. LEASES All of the Company’s right-of-use assets are operating leases related to its office premises. Details of the Company’s right-of-use assets and lease liabilities are as follows: SCHEDULE OF RIGHT OF USE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230630_zgRgMV50q419" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220930_zxZLgEULBe9j" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_maAz2XJ_zha0af61U5q4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify; padding-bottom: 2.5pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">166,960</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">240,796</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Balance, beginning of the year</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiability_iS_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zx6DFgks5oh3" style="text-align: right" title="Beginning balance">244,906</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseLiability_iS_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zPFaQqIMEGtg" style="text-align: right" title="Beginning balance">78,949</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Addition</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--AdditionOperatingLeasePayments_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zkPcGJTXL351" style="text-align: right" title="Addition">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--AdditionOperatingLeasePayments_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zQ82IebvUCKg" style="text-align: right" title="Addition">220,368</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Liability accretion</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--AccretionExpense_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zWKxKEAZvccb" style="text-align: right" title="Liability accretion">19,111</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--AccretionExpense_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zPnIhavNUS0f" style="text-align: right" title="Liability accretion">9,042</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Lease payments</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--OperatingLeasePayments_iN_di_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z5PVwKfsAYwi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(87,128</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--OperatingLeasePayments_iN_di_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zVnGFd9Ng0Mj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(63,453</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Balance, end of the year</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_eus-gaap--OperatingLeaseLiability_iE_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z9IQDNCEldjc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">176,889</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--OperatingLeaseLiability_iE_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z9NtTdzbaRnb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">244,906</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Current lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zENZfl06LxSa" style="text-align: right" title="Current lease liabilities">79,866</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zkHcfhpcgor7" style="text-align: right" title="Current lease liabilities">104,224</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Long-term lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zRHocJHg9Vif" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">97,023</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zsNxcJ16dWse" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">140,682</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The following table presents the Company’s total lease cost. SCHEDULE OF LEASE COST <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230401__20230630_zJ8blZ6hztjb" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220401__20220630_zBjaLBPZKblc" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20221001__20230630_zO1i7ZCvEW7k" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20211001__20220630_zKBBERkvDJ27" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseCost_maLCzNVK_zftBNrJEm2vi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">27,704</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">12,956</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">92,947</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">40,730</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--VariableLeaseCost_maLCzNVK_zjBLdTuUCXqi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Variable lease expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,516</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,397</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48,513</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,823</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--SubleaseIncome_iN_di_msLCzNVK_zWMNknUl6iM2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Sublease income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12,367</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,752</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,762</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(26,350</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--PaymentsForRent_iN_di_msLCzNVK_zgh8izOW4rpj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Rent subsidy</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,674</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_mtLCzNVK_z9MqtQed33I6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">37,853</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,601</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">108,698</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,529</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of June 30, 2023, maturities of the Company’s operating lease liabilities are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; width: 93%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify">Year</td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_49A_20230630_zz6p8kyA7VI" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzLB2_ziIlmicsE8wg" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 82%; text-align: justify">2023 remaining</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 14%; text-align: right">23,709</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzLB2_zi8fk9clBrA1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2024</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">82,190</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzLB2_zB83p4pC0GL7" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2025</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">84,664</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzLB2_zVbd4hx7jwF4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2026</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">14,180</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzLB2_z1BmYYytC5d6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Total lease payments</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">204,743</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zkjr4kE4DVch" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Less: imputed interest</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(27,854</td> <td style="font: 10pt Times New Roman, Times, Serif">)</td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiability_iI_z14zWMlktor1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Total lease liabilities</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif">$</td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">176,889</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED)

All of the Company’s right-of-use assets are operating leases related to its office premises. Details of the Company’s right-of-use assets and lease liabilities are as follows: SCHEDULE OF RIGHT OF USE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230630_zgRgMV50q419" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220930_zxZLgEULBe9j" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_maAz2XJ_zha0af61U5q4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify; padding-bottom: 2.5pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">166,960</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">240,796</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Balance, beginning of the year</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiability_iS_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zx6DFgks5oh3" style="text-align: right" title="Beginning balance">244,906</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseLiability_iS_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zPFaQqIMEGtg" style="text-align: right" title="Beginning balance">78,949</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Addition</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--AdditionOperatingLeasePayments_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zkPcGJTXL351" style="text-align: right" title="Addition">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--AdditionOperatingLeasePayments_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zQ82IebvUCKg" style="text-align: right" title="Addition">220,368</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Liability accretion</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--AccretionExpense_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zWKxKEAZvccb" style="text-align: right" title="Liability accretion">19,111</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--AccretionExpense_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zPnIhavNUS0f" style="text-align: right" title="Liability accretion">9,042</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Lease payments</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--OperatingLeasePayments_iN_di_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z5PVwKfsAYwi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(87,128</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--OperatingLeasePayments_iN_di_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zVnGFd9Ng0Mj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(63,453</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Balance, end of the year</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_eus-gaap--OperatingLeaseLiability_iE_c20221001__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z9IQDNCEldjc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">176,889</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--OperatingLeaseLiability_iE_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z9NtTdzbaRnb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">244,906</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Current lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zENZfl06LxSa" style="text-align: right" title="Current lease liabilities">79,866</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zkHcfhpcgor7" style="text-align: right" title="Current lease liabilities">104,224</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Long-term lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zRHocJHg9Vif" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">97,023</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zsNxcJ16dWse" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">140,682</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

166960

240796

244906

78949

220368

19111

9042

87128

63453

176889

244906

79866

104224

97023

140682

The following table presents the Company’s total lease cost. SCHEDULE OF LEASE COST <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20230401__20230630_zJ8blZ6hztjb" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220401__20220630_zBjaLBPZKblc" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20221001__20230630_zO1i7ZCvEW7k" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20211001__20220630_zKBBERkvDJ27" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseCost_maLCzNVK_zftBNrJEm2vi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">27,704</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">12,956</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">92,947</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">40,730</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--VariableLeaseCost_maLCzNVK_zjBLdTuUCXqi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Variable lease expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,516</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,397</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">48,513</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,823</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--SubleaseIncome_iN_di_msLCzNVK_zWMNknUl6iM2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Sublease income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12,367</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,752</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,762</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(26,350</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--PaymentsForRent_iN_di_msLCzNVK_zgh8izOW4rpj" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Rent subsidy</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,674</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_mtLCzNVK_z9MqtQed33I6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">37,853</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,601</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">108,698</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">43,529</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

27704

12956

92947

40730

22516

13397

48513

30823

12367

10752

32762

26350

1674

37853

15601

108698

43529

As of June 30, 2023, maturities of the Company’s operating lease liabilities are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; width: 93%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify">Year</td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_49A_20230630_zz6p8kyA7VI" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzLB2_ziIlmicsE8wg" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 82%; text-align: justify">2023 remaining</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%">$</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 14%; text-align: right">23,709</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzLB2_zi8fk9clBrA1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2024</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">82,190</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzLB2_zB83p4pC0GL7" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2025</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">84,664</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzLB2_zVbd4hx7jwF4" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">2026</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">14,180</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzLB2_z1BmYYytC5d6" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Total lease payments</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right">204,743</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zkjr4kE4DVch" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Less: imputed interest</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(27,854</td> <td style="font: 10pt Times New Roman, Times, Serif">)</td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiability_iI_z14zWMlktor1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Total lease liabilities</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif">$</td> <td style="border-bottom: black 2.25pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">176,889</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> </table>

23709

82190

84664

14180

204743

27854

176889

7. ASSET RETIREMENT OBLIGATIONS Asset retirement obligations reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with the Company’s oil and gas properties. Changes to the asset retirement obligations are as follows: SCHEDULE OF ASSET RETIREMENT OBLIGATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Asset retirement obligations, beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--AssetRetirementObligation_iS_c20221001__20230630_zmtohwbjo4Cj" style="width: 16%; text-align: right" title="Asset retirement obligations, beginning of the year">236,412</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AssetRetirementObligation_iS_c20211001__20220930_zWkjSJxthF5e" style="width: 16%; text-align: right" title="Asset retirement obligations, beginning of the year">552,594</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Revisions of estimates</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20221001__20230630_z7udtUDufnKe" style="text-align: right" title="Revisions of estimates">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20211001__20220930_zmqvNpymiKCe" style="text-align: right" title="Revisions of estimates">(371,212</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Accretion expense</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AssetRetirementObligationAccretionExpense_c20221001__20230630_zGEwTcBil7I4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">23,982</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AssetRetirementObligationAccretionExpense_c20211001__20220930_zXA4qGzm83x8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">55,030</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Asset retirement obligations, ending of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--AssetRetirementObligation_iE_c20221001__20230630_zwufPYSg9XCi" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">260,394</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--AssetRetirementObligation_iE_c20211001__20220930_ztel8kJAwtul" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">236,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> During the year ended September 30, 2022, the Company had revision of estimates totalling $371,212 primarily due to changes in future cost estimates and retirement dates for its oil and gas assets. Reclamation deposits As of June 30, 2023, the Company held reclamation deposits of $145,000 (September 30, 2022 - $145,000), which are expected to be released after all reclamation work has been completed with regard to its oil and natural gas interests. PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED)

SCHEDULE OF ASSET RETIREMENT OBLIGATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Asset retirement obligations, beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--AssetRetirementObligation_iS_c20221001__20230630_zmtohwbjo4Cj" style="width: 16%; text-align: right" title="Asset retirement obligations, beginning of the year">236,412</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AssetRetirementObligation_iS_c20211001__20220930_zWkjSJxthF5e" style="width: 16%; text-align: right" title="Asset retirement obligations, beginning of the year">552,594</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Revisions of estimates</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20221001__20230630_z7udtUDufnKe" style="text-align: right" title="Revisions of estimates">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20211001__20220930_zmqvNpymiKCe" style="text-align: right" title="Revisions of estimates">(371,212</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Accretion expense</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AssetRetirementObligationAccretionExpense_c20221001__20230630_zGEwTcBil7I4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">23,982</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AssetRetirementObligationAccretionExpense_c20211001__20220930_zXA4qGzm83x8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">55,030</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Asset retirement obligations, ending of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--AssetRetirementObligation_iE_c20221001__20230630_zwufPYSg9XCi" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">260,394</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--AssetRetirementObligation_iE_c20211001__20220930_ztel8kJAwtul" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">236,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

236412

552594

-371212

23982

55030

260394

236412

-371212

145000 145000

8. DEBT Convertible debenture – Related party As of September 30, 2022, the Company had a debenture loan of $<span id="xdx_908_eus-gaap--ConvertibleDebt_iI_c20220930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zmZAmpxGWtsc" title="Debenture loan">73,000 (CAD$<span id="xdx_90C_eus-gaap--ConvertibleDebt_iI_uCAD_c20220930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zSr4oshzGCKe" title="Debenture loan">100,000) from the CEO of the Company outstanding. The debenture loan was secured by an interest in all of the Company’s right, title, and interest in all of its oil and gas assets, bore interest at a rate of 12% per annum and had a <span id="xdx_901_eus-gaap--DebtInstrumentMaturityDateDescription_c20211001__20220930__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_z28cfAkTPNqk" title="Debt instrument, maturity date, description">maturity date of December 20, 2022. The debenture was convertible at the holder’s option into units of the Company at $6.57 (CAD$9.00) per unit. Each unit would be comprised of one common share of the Company and one share purchase warrant; each warrant entitled the holder to acquire one additional common share for a period of three years at an exercise price of $8.76 (CAD $12.00). During the year ended September 30, 2022, the Company repaid $34,709 of the loan (CAD$47,546). In November 2022, the Company repaid the remaining principal loan amount of $38,291 (CAD$52,454). The Company recorded interest of $nil and $1,182 for the three and nine months ended June 30, 2023. The Company recorded interest of $2,597 and $6,285 for the three and nine months ended June 30, 2022. Loan payable In May 2020, the Company opened a Canada Emergency Business Account (“CEBA”) and received a loan of $<span id="xdx_903_eus-gaap--ProceedsFromLoans_c20200501__20200531__us-gaap--UnderlyingAssetClassAxis__us-gaap--LoansPayableMember__us-gaap--TypeOfArrangementAxis__custom--CEBAMember_zFprwOaEmnDk" title="Proceeds from loans">28,640 (CAD$<span id="xdx_902_eus-gaap--ProceedsFromLoans_uCAD_c20200501__20200531__us-gaap--UnderlyingAssetClassAxis__us-gaap--LoansPayableMember__us-gaap--TypeOfArrangementAxis__custom--CEBAMember_z3eYA7D7QxZ5" title="Proceeds from loans">40,000) from the Canadian Government. The CEBA program was established to provide interest-free loans of up to CAD$60,000 to small businesses to help them cover operating costs during the COVID-19 pandemic. The loan was unsecured and non-interest bearing with a repayment deadline of December 31, 2023. During the year ended September 30, 2022, the Company repaid the loan balance of $23,600 (CAD$30,000) and recognized a gain of $7,800 (CAD$10,000) on the forgiven amount.

73000

100000

0.12

maturity date of December 20, 2022

6.57

9.00

P3Y

8.76

12.00

34709

47546

38291

52454

1182

2597

6285

28640

40000

60000

23600

30000

7800 10000

9. RELATED PARTY TRANSACTIONS The convertible debenture loan from the CEO of the Company mentioned in Note 8 was repaid during the nine months ended June 30, 2023.

10. LOSS PER SHARE The calculation of basic and diluted loss per share for the three and nine month periods ended June 30, 2023 and 2022 was based on the net losses attributable to common shareholders. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230401__20230630_zlRMeQDqE6r4" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20220401__20220630_zfLMLv5jnHs9" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20221001__20230630_zV0a1TyKwRdb" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20211001__20220630_zi9fSQXuS0zj" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zO09lUYXtVsl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(1,452,827</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(888,669</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(3,873,341</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(1,797,785</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_z4lycu8QbAC2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Weighted average common shares outstanding</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20230401__20230630_zAa8PpSn0Bzi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,964,147</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20220401__20220630_zKsLLATsmsYk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,932,604</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20221001__20230630_zC63pqOjdUS7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,943,118</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20211001__20220630_zY5jeY7xayBl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,411,734</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zTU5bW73LRyl" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Weighted average common shares outstanding, basic</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,964,147</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,932,604</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,943,118</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,411,734</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--EarningsPerShareBasic_zZGa9TOCFKxl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic and diluted loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--EarningsPerShareDiluted_c20230401__20230630_zaibvvuEIpL2" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(0.74</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--EarningsPerShareDiluted_c20220401__20220630_zx5pc3TfYfb1" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(0.46</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--EarningsPerShareDiluted_c20221001__20230630_zBivVUUnSWS6" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(1.99</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--EarningsPerShareDiluted_c20211001__20220630_zcsGAkrVUgna" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(1.27</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--EarningsPerShareBasic_zrnQCBCAPfIk" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.74</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.46</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.99</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.27</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> For the three and nine months ended June 30, 2023, 81,250 stock options and 1,118,942 warrants were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. For the three and nine months ended June 30, 2022, 92,917 stock options and 1,097,096 warrants were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED)

The calculation of basic and diluted loss per share for the three and nine month periods ended June 30, 2023 and 2022 was based on the net losses attributable to common shareholders. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20230401__20230630_zlRMeQDqE6r4" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20220401__20220630_zfLMLv5jnHs9" style="border-bottom: Black 1.5pt solid; text-align: right">Three Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20221001__20230630_zV0a1TyKwRdb" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20211001__20220630_zi9fSQXuS0zj" style="border-bottom: Black 1.5pt solid; text-align: right">Nine Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zO09lUYXtVsl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: justify">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(1,452,827</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(888,669</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(3,873,341</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">(1,797,785</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_z4lycu8QbAC2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Weighted average common shares outstanding</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20230401__20230630_zAa8PpSn0Bzi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,964,147</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20220401__20220630_zKsLLATsmsYk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,932,604</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20221001__20230630_zC63pqOjdUS7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,943,118</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20211001__20220630_zY5jeY7xayBl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average common shares outstanding, diluted">1,411,734</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_zTU5bW73LRyl" style="display: none; vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Weighted average common shares outstanding, basic</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,964,147</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,932,604</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,943,118</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,411,734</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--EarningsPerShareBasic_zZGa9TOCFKxl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic and diluted loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--EarningsPerShareDiluted_c20230401__20230630_zaibvvuEIpL2" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(0.74</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--EarningsPerShareDiluted_c20220401__20220630_zx5pc3TfYfb1" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(0.46</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--EarningsPerShareDiluted_c20221001__20230630_zBivVUUnSWS6" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(1.99</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--EarningsPerShareDiluted_c20211001__20220630_zcsGAkrVUgna" style="border-bottom: Black 2.5pt double; text-align: right" title="Diluted loss per share">(1.27</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--EarningsPerShareBasic_zrnQCBCAPfIk" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.74</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.46</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.99</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.27</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

-1452827

-888669

-3873341

-1797785

1964147

1932604

1943118

1411734

1964147

1932604

1943118

1411734

-0.74

-0.46

-1.99

-1.27

-0.74

-0.46

-1.99

-1.27

81250

1118942

92917

1097096

11. EQUITY Common stock The Company has authorized an unlimited number of common shares with no par value. At June 30, 2023 and September 30, 2022, the Company had 2,206,014 common shares issued and outstanding after giving effect to the 60:1 reverse stock split. During the nine months ended June 30, 2023, the Company announced a warrant exercise incentive program (the “Program”) whereby the Company amended the exercise prices of <span id="xdx_909_ecustom--NumberOfWarrantsForWhichExercisePriceAmended_c20221001__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zonR93a4fK09" title="Number of warrants for which exercise price amended">1,015,869 warrants (the “Eligible Warrants”) from $<span id="xdx_907_eus-gaap--WarrantExercisePriceIncrease_pid_c20221001__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember__srt--RangeAxis__srt--MaximumMember_zHJpsgqYJqlf" title="Warrant exercise price">12.60 per share to $<span id="xdx_902_eus-gaap--WarrantExercisePriceIncrease_pid_c20221001__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember__srt--RangeAxis__srt--MinimumMember_zUf8IgF5Clgl" title="Warrant exercise price">2.86 per share if the holders of the Eligible Warrants exercised the Eligible Warrants before June 30, 2023 (the “Program Period”). In addition to the repricing, the Company offered, to each warrant holder who exercised the Eligible Warrants during the Program Period, the issuance of one additional common share purchase warrant for each warrant exercised during the Program Period (each, an “Incentive Warrant”). Each Incentive Warrant entitles the warrant holder to purchase one common share of the Company for a period of <span id="xdx_903_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zx37fqoTD8Sb" title="Warrant sterm">5 years from the date of issuance, at a price of $<span id="xdx_900_eus-gaap--SharePrice_iI_c20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zOhxG0sjYjAi" title="Price per share">4.50 per Share. On June 30, 2023, the Company issued <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230630__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_z069U7jchvOf" title="Stock issued during period shares new issues">273,410 common shares at a price of $2.86 per share from the exercise of the Eligible Warrants pursuant to the Program for gross proceeds of $781,953 (net proceeds of $<span id="xdx_90A_ecustom--NetProceedsFromIssuanceOfCommonStock_c20230630__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zth7cqWhcdz5" title="Proceeds from issuance of common stock">688,092). In connection with the Program, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230630__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zCWze7cV0grc" title="Stock issued during period shares new issues">273,410 Incentive Warrants. The Company also incurred $62,556 and issued <span id="xdx_90D_ecustom--NumberOfWarrantsIssuedAsAFindersFee_c20230630__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zjKObfcsw7sc" title="Number of warrants issued as a finders fee">21,872 warrants as a finders’ fee to its investment bank. The finder’s warrants are on the same terms as the Incentive Warrants. The Incentive Warrants and finder’s warrants were valued at $449,005 and $35,919, respectively, using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_zB6hekobQE7i">3.68%, an expected life of <span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_zwR1OdXk2cf">5 years, annualized volatility of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_zNwSTu2EEVp9">128.81% and a dividend rate of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_zJ80XVsESGaf">0%). The repricing of the Eligible Warrants is accounted for as a modification under ASC 815-40-35-14 through 18. The effect of the modification is $544,164, measured as the excess of the fair value of the repriced warrants over the fair value of the original warrants immediately before it was modified and the fair value of the incentive warrants issued as an additional inducement to exercise the warrants. The fair values were measured using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_zQtDvv7eR8x9">4.21%, an expected life of <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_zmSKlJa3y9P8">3.75 years, annualized volatility of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_z4CSnn7berpe">137.62% and a dividend rate of <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_zRl1uVqT6KUd">0%). The Company recognized a deemed dividend of $543,234 for the fair value of the Incentive Warrants and the portion of inducement related to the equity-classified warrants. The effect of the repricing of the liability-classified warrants was $930 and was recorded in the statement of loss. The Company also incurred legal and other expenses of $31,305 in connection with the Program. During the year ended September 30, 2022, the Company: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 48px"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px">a) </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Completed a non-brokered private placement of <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211104__20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zVEvkKaf6cn5" title="Stock shares new issue">44,117 units at a price of $12.96 (CAD$<span id="xdx_908_eus-gaap--SaleOfStockPricePerShare_iI_uCADPShares_c20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zGQojJLkgbTa" title="Sale of stock price per share">16.20) per unit for gross proceeds of $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20211104__20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z4NCOKyuSOck" title="Common stock, gross proceeds">571,760 (CAD$<span id="xdx_902_eus-gaap--ProceedsFromIssuanceOfCommonStock_uCAD_c20211104__20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zUW4P2o4iNY8" title="Common stock, gross proceeds">714,700) on November 4, 2021. Each unit is comprised of one common share and one half of one share purchase warrant; each whole warrant entitles the holder to acquire one additional common share for a period of 24 months at an exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zxgpxjBAETll" title="Exercise price">25.80 (CAD$<span id="xdx_902_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_uCADPShares_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z11JlFpy6Q8e" title="Exercise price">32.40). $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfWarrants_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z7WPo6EtkB9e" title="Proceeds from allocated warrants">202,009 of the proceeds was allocated to the warrants and recorded as a warrant liability. The Company paid $34,733 and issued <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zx7s6LCgNmz5" title="Warrants issued">2,680 agent’s warrants as a finders’ fee. The finder’s warrants have the same terms as the warrants issued under the private placement. The finder’s warrants were valued at $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zorDrSKZnDkk" title="Warrants issued">24,543 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zhRuE6umxu2k" title="Risk- free interest rate">0.98%, an expected life of <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z3Sd4EaZ0KW4" title="Expected life">2 years, annualized volatility of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zGaocgUJEPYj" title="Annualized volatility">153.02% and a dividend rate of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zZiLDr6VwAmi" title="Dividend rate">0%). The Company also incurred filing and other expenses of $800 in connection with the private placement. $8,671 of issuance costs related to the warrants was recorded in the statement of loss.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">b) </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Completed a brokered private placement of <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220329__20220329__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_z0F7La9wbii4" title="Stock shares new issue">785,477 units at a price of $9.60 per unit for gross proceeds of $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20220329__20220329__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zqcxZ40mNzuk" title="Common stock, gross proceeds">7,540,580 on March 29, 2022. Each unit is comprised of one common share and one common share purchase warrant; each warrant entitles the holder to acquire one additional common share for a period of 5 years at an exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zHgJdshwTlV3" title="Exercise price">12.60. $<span id="xdx_904_eus-gaap--ProceedsFromIssuanceOfWarrants_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zLsLcM3q9oV" title="Proceeds from allocated warrants">607,170 of the proceeds was allocated to the warrants. ThinkEquity LLC acted as sole placement agent for the private placement. In connection with the private placement, ThinkEquity received a cash commission of $754,058, 78,548 broker warrants and expense reimbursement of $131,560. The broker’s warrants have the same terms as the warrants issued under the private placement. The broker’s warrants were valued at $858,429 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_z2lOBRAAXLH6" title="Risk-free interest rate">2.45%, an expected life of <span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zkGP17WTuQfe" title="Expected life">5 years, annualized volatility of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zwDEF0t7jKz4" title="Annualized volatility">134.66% and a dividend rate of <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zdXnRiuv7g52" title="Dividend rate">0%). The Company also incurred filing and other expenses of $159,271 in connection with the private placement.</td></tr> </table> Share-based payments Stock options The Company has a stock option plan (the “Plan”) in place under which it is authorized to grant options to executive officers and directors, employees and consultants. Pursuant to the Plan, the Company may issue aggregate stock options totaling up to 10% of the issued and outstanding common stock of the Company. Further, the Plan calls for the exercise price of each option to be equal to the market price of the Company’s stock as calculated on the date of grant. The options can be granted for a maximum term of <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20221001__20230630_zUjsOmqDNbYl" title="Vested term">10 years and vest at the discretion of the Board of Directors at the time of grant. PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED) 11. EQUITY (cont’d…) Share-based payments (cont’d…) Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20211001__20220930_z3JftlVu0pNa" style="width: 16%; text-align: right" title="Number of options, beginning balance">37,917</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20211001__20220930_zrJlG9S6KOWi" style="width: 16%; text-align: right" title="Weighted average exercise price,beginning balance">19.51</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20211001__20220930_zehGflL53bg3" style="text-align: right" title="Granted">55,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zu0rjSPagBrl" style="text-align: right" title="Weighted average exercise price, granted">10.51</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; padding-left: 10pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20211001__20220930_z9yNEXFdy3wl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(8,334</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20211001__20220930_z5bZbRxF4cmb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">17.34</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">84,583</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20221001__20230630_zsDDZArNk9S4" title="Weighted average exercise price, beginning balance">13.26</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 10pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_iN_di_c20221001__20230630_zl6ZTM9bnt5b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">(3,333</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20221001__20230630_zmotK7PXGskh" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">10.66</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">81,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20221001__20230630_zXJvN6hsk1Kl" title="Weighted average exercise price, ending balance">13.74</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20230630_zhRMSFmc7fMc" style="border-bottom: Black 2.5pt double; text-align: right" title="Exercisable">81,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20221001__20230630_zkOSSFSGDgVh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, exercisable">74</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The aggregate intrinsic value of options outstanding and exercisable as at June 30, 2023 was $<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iI_dxL_c20230630_zvvVbfe4x1s5" title="Aggregate intrinsic value of options outstanding and exercisable::XDX::-">nil (September 30, 2022 - $<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iI_dxL_c20220930_z7Wp9yAi8JH" title="Aggregate intrinsic value of options outstanding and exercisable::XDX::-">nil). The options outstanding as of June 30, 2023 have exercise prices in the range of $2.25 to $22.50 and a weighted average remaining contractual life of <span id="xdx_90D_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20221001__20230630_zvaEUFtk2oB7" title="Weighted average remaining contractual life">6.91 years. During the nine months ended June 30, 2023 and 2022, the Company recognized share-based payment expense of $318 and $604,861, respectively, for the portion of stock options that vested during the period. The share-based payment expense for the three months ended June 30, 2023 and 2022 was $nil and $185, respectively. The following weighted average assumptions were used for the Black-Scholes valuation of stock options granted: <p id="xdx_89B_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zDnno7vKBgz4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify; text-indent: -0.5in">SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1.5</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10 Years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221001__20230630_zMwP2StLdLnc" title="Expected annualized volatility">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220630_zdan4QS4Vgsi" title="Expected annualized volatility">96.56</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Nil</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As June 30, 2023, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: right">Number of Options</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zlT63n0yiHzk" style="width: 22%; text-align: right" title="Number of options">22,917</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zlx5BYkTfeYh" style="width: 22%; text-align: right" title="Exercise price">22.50</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_902_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zzQMxrNjWh64" title="Issuance date">December 4, 2017</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zArLXnrwifhl" title="Expiry date">December 4, 2027</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zHjH0zg1Rk2" style="text-align: right" title="Number of options">5,000</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zku4Wh2kaErc" style="text-align: right" title="Exercise price">13.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zG0fjKfJ98x2" title="Issuance date">November 1, 2018</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zZPGn5ZNR4Vj" title="Expiry date">November 1, 2028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zUAUnVbMkUR1" style="text-align: right" title="Number of options">5,000</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_z5zq27cM6sZ1" style="text-align: right" title="Exercise price">2.25</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zjUnE36nCKK6" title="Issuance date">March 16, 2020</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zS4n2yiUQoqa" title="Expiry date">March 16, 2030</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z0iVksdaMy6a" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of options">48,333</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zpX81K6Au5If" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise Price">10.80</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_90D_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zZflpdoVrFh3" title="Issuance date">October 6, 2021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_901_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zhFeCwO4rxo1" title="Expiry date">October 6, 2031</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630_z01gzAa6Bmy7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options">81,250</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED JUNE 30, 2023 (UNAUDITED) 11. EQUITY (cont’d…) Warrants Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentsOutstandingNumber_iS_c20211001__20220930_z9znfaiQkvx5" style="width: 16%; text-align: right" title="Number of warrants, beginning balance">208,332</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20211001__20220930_zQCGUXBltY1j" style="width: 16%; text-align: right" title="Weighted Average Exercise Price, beginning balance">9.42</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 10pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentsGranted_c20211001__20220930_zIjL2SiITB2e" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">888,738</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20211001__20220930_z2pmCIBo5gnj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">12.91</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance, September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20221001__20230630_zaLDqBtYiL44" style="text-align: right" title="Number of warrants, beginning balance">1,097,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20221001__20230630_z1c58u8Bnu4c" style="text-align: right" title="Weighted Average Exercise Price, beginning balance">12.12</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20221001__20230630_ziLbexkJvHW9" style="text-align: right" title="Exercised">(273,410</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedWeightedAverageGrantDateFairValue_c20221001__20230630_zwySku6l7bm6" style="text-align: right" title="Weighted average exercise price, exercised">2.86</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20221001__20230630_zxyBTh87bVMa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">295,282</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20221001__20230630_zqiOVFtMUyYe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">4.50</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20221001__20230630_z512HNlbKSO2" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, ending balance">1,118,942</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iE_c20221001__20230630_zTMF0wzQ7Nph" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, ending balance">9.98</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As June 30, 2023, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zTZ6xZKIDg5j" style="width: 22%; text-align: right" title="Number of warrants">17,558</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zVizZOhnrzgd" style="width: 22%; text-align: right" title="Exercise price">24.30</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zORN0t7P2x8a" title="Issuance date">November 4, 2021</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zpsrSDBWSep4" title="Expiry date">November 4, 2023</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_987_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zMhMIlYFLSdb" style="text-align: right" title="Number of warrants">597,770</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zhzlqGaVOnsk" style="text-align: right" title="Exercise price">12.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zWuaDxrvZfui" title="Issuance date">March 29, 2022</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zvoKZPCElxlg" title="Expiry date">March 29, 2027</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_988_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zd4OZqf0xFQ6" style="text-align: right" title="Number of warrants">295,282</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zlaQw4jcADH3" style="text-align: right" title="Exercise price">4.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zGoyYcfJ8oZ4" title="Issuance date">June 30, 2023</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zfz9DmWNJbmh" title="Expiry date">June 30, 2028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zHs6xqZgV4af" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants">208,332</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_983_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zmXwBfW60ok1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise price">9.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_904_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_z2pcx8qq1Xm9" title="Issuance date">September 30, 2021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zt0U5yl1AEy1" title="Expiry date">September 30, 2031</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230331_zE7vIbtNv8I1" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants">1,118,942</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <span id="xdx_907_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zMwhoFbW9u0k" title="Number of shares issued with private placement">22,059 warrants issued with private placement units during fiscal 2022 have an exercise price denominated in CAD. These warrants were initially valued at $202,009 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20221001__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zkvhQWhKjzak" title="Risk free interest rate">0.98%, an expected life of <span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20221001__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zCuybZSrCyL" title="Expected life">2 years, annualized volatility of <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221001__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zBQTCFUMBfWg" title="Volatility rate">153.02% and a dividend rate of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20221001__20230630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z6FqOAsMFsXk" title="Dividend rate">0%) and recorded as a warrant liability. The fair value of these warrants were remeasured at each reporting period and a gain on fair value of $178,509 was recorded during the year ended September 30, 2022. During the nine months ended June 30, 2023, a gain on fair value of $23,500 was recorded (2022 - $152,869). During the three months ended June 30, 2023, a gain on fair value of $1,066 was recorded (2022 - $72,838). <p id="xdx_897_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zoPmkCAcsXpb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at June 30, 2023 and September 30, 2022: SCHEDULE OF VALUATION OF WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20230630_zPswnSimGLXl" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zKIddqDdsWE7" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zDgJiUZ0gi7c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">4.58</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3.79</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.33 Year</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1 Year</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zfXB5CpztVj8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73.12</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135.59</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20230630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zkMreAZ5eq8c" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20220930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zNB3huAe1Y6k" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--WeightedAverageFairValueOfOptionsGranted_iI_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zDpgfkXYqZyi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2206014

60:1 reverse stock split 60:1 reverse stock split 1015869

12.60

2.86

P5Y

4.50

273410

2.86

781953

688092

273410

62556

21872 449005 35919

0.0368

P5Y

1.2881

544164

0.0421

P3Y9M

1.3762

543234

930

31305

44117

12.96

16.20

571760

714700

25.80

32.40

202009

34733

2680

24543

0.0098

P2Y

1.5302

800

8671

785477

9.60

7540580

P5Y

12.60

607170

754058

78548

131560

858429

0.0245

P5Y

1.3466

159271

0.10

P10Y

Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20211001__20220930_z3JftlVu0pNa" style="width: 16%; text-align: right" title="Number of options, beginning balance">37,917</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20211001__20220930_zrJlG9S6KOWi" style="width: 16%; text-align: right" title="Weighted average exercise price,beginning balance">19.51</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20211001__20220930_zehGflL53bg3" style="text-align: right" title="Granted">55,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zu0rjSPagBrl" style="text-align: right" title="Weighted average exercise price, granted">10.51</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; padding-left: 10pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20211001__20220930_z9yNEXFdy3wl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(8,334</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20211001__20220930_z5bZbRxF4cmb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">17.34</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">84,583</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20221001__20230630_zsDDZArNk9S4" title="Weighted average exercise price, beginning balance">13.26</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 10pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_iN_di_c20221001__20230630_zl6ZTM9bnt5b" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">(3,333</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20221001__20230630_zmotK7PXGskh" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">10.66</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">81,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20221001__20230630_zXJvN6hsk1Kl" title="Weighted average exercise price, ending balance">13.74</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20230630_zhRMSFmc7fMc" style="border-bottom: Black 2.5pt double; text-align: right" title="Exercisable">81,250</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20221001__20230630_zkOSSFSGDgVh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, exercisable">74</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

37917

19.51

55000

10.51

8334

17.34

84583

13.26

3333

10.66

81250

13.74

81250

2.25

22.50

P6Y10M28D

318

604861

185

<p id="xdx_89B_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zDnno7vKBgz4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify; text-indent: -0.5in">SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1.5</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10 Years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221001__20230630_zMwP2StLdLnc" title="Expected annualized volatility">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220630_zdan4QS4Vgsi" title="Expected annualized volatility">96.56</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Nil</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

0.015

P10Y

0.9656

10.17

As June 30, 2023, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: right">Number of Options</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zlT63n0yiHzk" style="width: 22%; text-align: right" title="Number of options">22,917</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zlx5BYkTfeYh" style="width: 22%; text-align: right" title="Exercise price">22.50</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_902_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zzQMxrNjWh64" title="Issuance date">December 4, 2017</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zArLXnrwifhl" title="Expiry date">December 4, 2027</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zHjH0zg1Rk2" style="text-align: right" title="Number of options">5,000</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zku4Wh2kaErc" style="text-align: right" title="Exercise price">13.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zG0fjKfJ98x2" title="Issuance date">November 1, 2018</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zZPGn5ZNR4Vj" title="Expiry date">November 1, 2028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zUAUnVbMkUR1" style="text-align: right" title="Number of options">5,000</td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_z5zq27cM6sZ1" style="text-align: right" title="Exercise price">2.25</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zjUnE36nCKK6" title="Issuance date">March 16, 2020</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zS4n2yiUQoqa" title="Expiry date">March 16, 2030</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z0iVksdaMy6a" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of options">48,333</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zpX81K6Au5If" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise Price">10.80</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_90D_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zZflpdoVrFh3" title="Issuance date">October 6, 2021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_901_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zhFeCwO4rxo1" title="Expiry date">October 6, 2031</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230630_z01gzAa6Bmy7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options">81,250</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

22917

22.50

2017-12-04 2027-12-04

5000

13.50

2018-11-01 2028-11-01

5000

2.25

2020-03-16 2030-03-16

48333

10.80

2021-10-06 2031-10-06

81250

Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentsOutstandingNumber_iS_c20211001__20220930_z9znfaiQkvx5" style="width: 16%; text-align: right" title="Number of warrants, beginning balance">208,332</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20211001__20220930_zQCGUXBltY1j" style="width: 16%; text-align: right" title="Weighted Average Exercise Price, beginning balance">9.42</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; padding-left: 10pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentsGranted_c20211001__20220930_zIjL2SiITB2e" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">888,738</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20211001__20220930_z2pmCIBo5gnj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">12.91</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance, September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20221001__20230630_zaLDqBtYiL44" style="text-align: right" title="Number of warrants, beginning balance">1,097,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20221001__20230630_z1c58u8Bnu4c" style="text-align: right" title="Weighted Average Exercise Price, beginning balance">12.12</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20221001__20230630_ziLbexkJvHW9" style="text-align: right" title="Exercised">(273,410</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedWeightedAverageGrantDateFairValue_c20221001__20230630_zwySku6l7bm6" style="text-align: right" title="Weighted average exercise price, exercised">2.86</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20221001__20230630_zxyBTh87bVMa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">295,282</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20221001__20230630_zqiOVFtMUyYe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">4.50</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, June 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20221001__20230630_z512HNlbKSO2" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, ending balance">1,118,942</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iE_c20221001__20230630_zTMF0wzQ7Nph" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, ending balance">9.98</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 208332 9.42 888738 12.91

1097070

12.12

273410

2.86

295282

4.50

1118942

9.98

As June 30, 2023, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zTZ6xZKIDg5j" style="width: 22%; text-align: right" title="Number of warrants">17,558</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zVizZOhnrzgd" style="width: 22%; text-align: right" title="Exercise price">24.30</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zORN0t7P2x8a" title="Issuance date">November 4, 2021</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zpsrSDBWSep4" title="Expiry date">November 4, 2023</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_987_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zMhMIlYFLSdb" style="text-align: right" title="Number of warrants">597,770</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zhzlqGaVOnsk" style="text-align: right" title="Exercise price">12.60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zWuaDxrvZfui" title="Issuance date">March 29, 2022</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zvoKZPCElxlg" title="Expiry date">March 29, 2027</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_988_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zd4OZqf0xFQ6" style="text-align: right" title="Number of warrants">295,282</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zlaQw4jcADH3" style="text-align: right" title="Exercise price">4.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zGoyYcfJ8oZ4" title="Issuance date">June 30, 2023</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zfz9DmWNJbmh" title="Expiry date">June 30, 2028</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zHs6xqZgV4af" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants">208,332</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_983_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zmXwBfW60ok1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise price">9.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_904_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_z2pcx8qq1Xm9" title="Issuance date">September 30, 2021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230630__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zt0U5yl1AEy1" title="Expiry date">September 30, 2031</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230331_zE7vIbtNv8I1" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants">1,118,942</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

17558

24.30

2021-11-04 2023-11-04

597770

12.60

2022-03-29 2027-03-29

295282

4.50

2023-06-30 2028-06-30

208332

9.00

2021-09-30 2031-09-30

1118942

22059

202009

0.0098

P2Y

1.5302

178509 23500 152869 1066 72838

<p id="xdx_897_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zoPmkCAcsXpb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at June 30, 2023 and September 30, 2022: SCHEDULE OF VALUATION OF WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in; border-collapse: collapse; width: 93%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20230630_zPswnSimGLXl" style="border-bottom: Black 1.5pt solid; text-align: right">June 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zKIddqDdsWE7" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zDgJiUZ0gi7c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">4.58</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3.79</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.33 Year</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1 Year</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zfXB5CpztVj8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73.12</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135.59</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20230630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zkMreAZ5eq8c" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20220930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zNB3huAe1Y6k" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--WeightedAverageFairValueOfOptionsGranted_iI_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zDpgfkXYqZyi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4.58

3.79

P0Y3M29D

P1Y

73.12

135.59

0.00 1.46 The number of shares has been restated to reflect the 60:1 share consolidation (Note 1). Revisions in 2021 included 120,850 bbls in proved undeveloped reserves being reclassified as probable in the 2021 reserve report, net of other immaterial revisions in several properties. During 2021, the Company purchased 1,246 net acres in Martin County, Texas. During 2021, the Company sold ODC and Taylor properties. Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations. Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year. The number of shares has been restated to reflect the 60:1 reverse stock split (Note 1) The number of shares has been restated to reflect the 60:1 reverse stock split (Note 1) The number of shares has been restated to reflect the 60:1 share consolidation (Note 1) The number of shares has been restated to reflect the 60:1 reverse stock split (Note 1).