Trio Petroleum Corp. (AMEX:TPET) stock is moving higher on Thursday after the company announced that it will acquire certain petroleum and natural gas properties held by Novacor Exploration Ltd.
The Details: Trio signed a non-binding letter of intent with Novacor under which the company would pay $1.4 million for 100% working interest in the assets, payable with $650,000 in cash and the remainder in shares of common stock of Trio.
The properties, located in Saskatchewan, Canada, currently feature seven producing wells. The assets produce 70 barrels per day of heavy crude oil from cash-flow-positive wells, with royalty obligations ranging from 13.5% to 15% and a 2% gross overriding royalty.
Production could double with four re-entry wells and two reactivations, each costing $30,000 and expected to add 10 bpd. A reserve report prepared in August 2024 by Petrotech and Associates estimates 91.5 MBBL of total proved and probable oil reserves for the currently producing wells.
"We are excited to acquire an initial footprint in this very lucrative oil and gas area of Canada and home to some of the largest players in the industry such as Cenovus Energy, Canadian Natural Resources, Baytex Energy, Rife Resources and many others who have made Heavy Oil a staple of their operation, and where numerous opportunities to acquire additional highly economic fields exist," stated Robin Ross, Trio's CEO.
TPET Price Action: At the time of publication, Trio stock is trading 145% higher at $2.00, according to data from Benzinga Pro.
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