Asphalt Ridge Option Period to Acquire Remaining 17.75% Working Interest Extended to April 10, 2025 and non-binding Letter of Intent to acquire Novacor oil and gas assets extended to March 15, 2025.

Rhea-AI Summary

Trio Petroleum Corp (NYSE: TPET) announced two key updates: an extension of its option period to acquire additional working interest in the Asphalt Ridge Project and an extended LOI deadline for Novacor assets acquisition.

The Asphalt Ridge option period has been extended to April 10, 2025, allowing TPET to acquire the remaining 17.75% interest in the initial 960 acres. TPET currently owns 2.25% working interest and can acquire up to an additional 17.75% in the same area, plus 20% in adjacent 1,920 acres. Two exploratory wells, HSO 2-4 and HSO 8-4, showed substantial oil-bearing pay zones (190' and 100' respectively). Each typical project well has an estimated ultimate recovery of 300,000 barrels with initial production of 40 barrels per day.

The non-binding LOI to acquire Novacor's Saskatchewan heavy oil assets has been extended to March 15, 2025. The Novacor assets include seven producing wells yielding approximately 70 barrels per day, with potential for 4 additional re-entry wells and two reactivation locations capable of adding 70 barrels total daily production.

Positive

• Substantial oil-pay zones discovered in both exploratory wells
• Each Asphalt Ridge well estimated to recover 300,000 barrels
• Current Novacor assets are cash flow positive
• Potential to increase production by 70 barrels/day through well reactivations
• Low-cost development potential due to shallow well depths (1830 feet)

Negative

• Extended deadline suggests possible delays in Novacor acquisition completion
• Currently owns only 2.25% working interest in Asphalt Ridge
• Option to acquire remaining interest not yet exercised

Bakersfield, CA, March 05, 2025 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: “TPET”, “Trio” or the “Company”), a California-based oil and gas company, today provided updates on its Asphalt Ridge Project in Uintah County, Utah, and its intent to acquire a 100% working interest in certain petroleum and natural gas properties held by Novacor Exploration Ltd. which are located in the prolific Lloydminster, Saskatchewan heavy oil region.

Asphalt Ridge Project

TPET announced on January 5, 2024, that it had secured an option (the “Option”) to acquire a 20% interest in a sweet (i.e., low sulfur content), heavy-oil and tar-sand development project at Asphalt Ridge, located near the town of Vernal in Uintah County, northeastern Utah. We announced on June 11, 2024, the successful drilling and completion of the first two exploratory wells at the project, the HSO 2-4 and HSO 8-4 and that the wells encountered substantial oil-bearing pay zones in the Rimrock and Asphalt Ridge tar-sands (over 190’of oil-pay in HSO 2-4 and over 100’ of oil-pay in HSO 8-4).

TPET currently owns a 2.25% working interest in 960 acres at Asphalt Ridge, and under the Option may acquire up to an additional 17.75% working interest in the same 960 acres and also a 20% interest in an adjacent 1,920 acres, and also has a right of first refusal to participate in an additional approximate 30,000 acres of the greater Asphalt Ridge Project on terms offered to other third parties. TPET has secured an Option extension and now has until April 10, 2025, to exercise its right to acquire the remaining 17.75% interest in the initial 960 acres. 

The Asphalt Ridge Project is known to be one of the largest heavy-oil and tar-sand deposits in North America outside of Canada, making it a potential giant oilfield, and is unique given its low wax and negligible sulfur content, which is expected to make the oil very desirable for many industries, including shipping. A typical project well has an estimated ultimate recovery (“EUR”) of 300,000 barrels of oil with an initial production rate of approximately 40 barrels of oil per day.

Novacor Exploration Ltd Oil and Gas Assets

TPET announced on December 19, 2024, that it had entered into a non-binding Letter of Intent (“LOI”) for the acquisition of a 100% working interest in certain petroleum and natural gas properties held by Novacor Exploration Ltd. (“Novacor”), which are located in the prolific Lloydminster, Saskatchewan heavy oil region (the “Acquisition”). “The Lloydminster area has seen noteworthy activity from top produces both large and small as the areas thermal and heavy oil projects are key operational focuses for public companies from Cenovus and Strathcona to Lycos Energy, along with a healthy pool of private companies. Unlike other more costly plays in Canada, Lloydminster “per well” costs are not prohibitive for many small producers as the wells are generally shallow, with an average true vertical depth of just under 1830 feet.” (BOE Report February 27, 2024). In the event that Trio consummates the Acquisition, it believes that it could strategically position itself to expand its operations into one of North America’s most promising heavy oil basins, with upside potential for long term production and reserve growth. Since the Novacor assets are in the heavy oil area, they offer economical development. Market accessibility combined with a favorable regulatory process makes this area very attractive for continued and future development within these lands.

There are currently seven producing wells located on the two properties. The wells produce heavy crude oil from the McLaren/Sparky and Lloydminster formation(s). Novacor is the operator of these cash flow positive wells. Current production is approximately 70 barrels per day with potential for 4 additional re-entry wells and two fully equipped locations to be reactivated each capable of an additional 70 barrels in total per day. Trio and Novacor mutually agreed to extend the execution of definitive acquisition documents to March 15, 2025. Trio plans to negotiate an additional extension if documents are not completed and executed by that date.

About Trio Petroleum Corp

Trio Petroleum Corp is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California, and Uintah County, Utah. In Monterey County, Trio owns a 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields in the South Salinas Project, and a 21.92% working interest in 800 acres in the McCool Ranch Field. In Uintah County, Trio owns a 2.25% working interest in 960 acres and options to acquire up to an additional 17.75% working interest in the 960 acres, and also a 20% working interest in an adjacent 1,920 acres, and a right of first refusal to participate in up to a 20% working interest in an additional approximate 30,000 acres of the Asphalt Ridge Project with other third parties.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Trio Petroleum Corp (“Trio”) and its representatives and partners that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words "estimates," "believes," "hopes," "expects," "intends," “on-track”, "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Trio's control, that could cause actual results to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Trio’s S-1 filed with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC's website, www.sec.gov. Trio undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Relations Contact:
Redwood Empire Financial Communications
Michael Bayes
(404) 809 4172
michael@redwoodefc.com

FAQ

What is the current production rate of Novacor's assets that TPET plans to acquire?

The Novacor assets currently produce approximately 70 barrels per day from seven producing wells in the Lloydminster, Saskatchewan region.

What are the estimated production metrics for wells at TPET's Asphalt Ridge Project?

Each typical well at Asphalt Ridge has an estimated ultimate recovery of 300,000 barrels and initial production rate of 40 barrels of oil per day.

How much additional working interest can TPET acquire in the Asphalt Ridge Project?

TPET can acquire an additional 17.75% working interest in the initial 960 acres, plus 20% interest in adjacent 1,920 acres.

What were the drilling results from TPET's exploratory wells at Asphalt Ridge?

The HSO 2-4 well showed over 190 feet of oil-pay and HSO 8-4 well showed over 100 feet of oil-pay in the Rimrock and Asphalt Ridge tar-sands.

What is the potential production increase from Novacor's additional wells?

The assets have potential for 4 re-entry wells and two reactivation locations that could add 70 barrels total per day to production.