Barnwell Industries, Inc. announced a new drilling acquisition in the Permian Basin for about $5 million in its Dec. 29 year-end and fourth quarter results. 

Barnwell said its Permian acquisition is a non-operated working interest in a two well pad with 10,000’ laterals targeting the Wolfcamp Formation in the Loving and Ward counties, Texas. Barnwell holds a 50% working interest in the unit and expects initial production in its fiscal second quarter ending March 31. 

The acquisition is part of Barnwell’s expansion of U.S. oil and gas investments and may be potentially utilized as net operating loss carryforward, Barnwell CEO Alexander Kinzler said. 

In the report, Barnwell said net earnings were approximately $5.5 million, $0.57 per share for the year ended Sept. 30 compared to 2021’s $6.2 million, $0.73 per share for the year ended Sept. 30. 

“The $740,000 decrease in net earnings in fiscal 2022 as compared to fiscal 2021 was primarily due to the company’s recognition of $4,472,000 in gains in fiscal 2021 that did not occur in fiscal 2022, which included a $2,341,000 gain from the termination of the company's Post-retirement Medical plan, $1,982,000 in gains from the sales of assets, and a $149,000 gain on debt extinguishment,” Kinzler said. 

Barnwell’s oil and natural gas revenues doubled for fiscal 2022 compared to 2021 due to higher commodity prices and production, Kinzler said.  New production from wells drilled in Canada and Oklahoma also contributed to the improved oil and natural gas segment operating results. 

Two new Alberta Province North Twining Unit (NTU) wells Barnwell holds 29% interest in began production in the second fiscal quarter. Three wells in the NTU also began production in the third quarter, with a fourth expected to come online in the second quarter of fiscal 2023. Barnwell’s 100% working interest well brought onstream in March performed well this year as well.