Trans Canada Gold Corp. Signs Agreement With Croverro Energy Ltd. to Drill a Third Multilateral Horizontal Heavy Oil Well, Adjacent to the Company's First Successful Lloyd 12-14 Heavy Oil Well

Rhea-AI Summary

Trans Canada Gold Corp. (TTGXF) has agreed to participate in drilling a third 7-leg Sparky multi-lateral well with Croverro Energy The new 5-23 well will be located adjacent to their successful 12-14 Multilateral Well near Lloydminster, Alberta, with Trans Canada holding an 18.75% interest.

The planned well is expected to open approximately 3000m of Sparky formation and will be drilled in summer/Q3 2025, subject to regulatory approval. The drilling, completion, and equipping costs are estimated at $1.9 million ($350,000 net to Trans Canada), fully funded from production cash flow without share dilution.

The company's previous 12-14 Sparky well, drilled in 2023, has produced over 85,000 barrels of oil and continues consistent monthly production. The Area of Mutual Interest now encompasses 1040 acres with potential in the Sparky and GP zones. Croverro Energy will serve as the operator under the agreement terms.

Positive

• Previous well (12-14) has produced over 85,000 barrels of oil with consistent monthly production
• New well costs ($350,000) to be funded entirely from production cash flow, avoiding shareholder dilution
• Area of Mutual Interest expanded to 1040 acres

Negative

• 18.75% working interest in the joint venture

News Market Reaction – TTGXF

+20.52%

1 alert

+20.52% News Effect

On the day this news was published, TTGXF gained 20.52%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

VANCOUVER, BC / ACCESS Newswire / February 13, 2025 / Trans Canada Gold Corp. (TSXV:TTG)(OTCQB:TTGXF) ("Trans Canada" or the "Company") is pleased to announce it has agreed to participate to drill a 7-leg Sparky multi-lateral well with Croverro as operator for the Joint Venture. The newly proposed 5-23 well will be situated adjacent to the Company's 12-14 Multilateral Well near Lloydminster, Alberta. Trans Canada has an 18.75% interest in the new well. This third multi-lateral horizontal well is expected to be similar to the company's successful 7HZ LLOYD 12-14-49-01W4 well, that was drilled in 2023 and encountered 2486 metres of oil pay in the Sparky Oil Formation. The 12-14 Sparky well has now produced over 85,000 barrels of oil and continues to produce consistently month over month. The new 5-23 well is planned to open an estimated 3000 m of Sparky formation. The well is scheduled to be drilled this summer/ third quarter of 2025, subject to final permitting by the Alberta Energy Regulator.

The company has an 18.75% working interest in the Joint Venture with Croverro. The Area of Mutual Interest now contains 1040 acres with potential in the Sparky and GP zones. This third multi-lateral horizontal well is based on similar wells drilled in the Sparky Oil Formation using surrounding well control and recently processed seismic lines. Croverro Energy Ltd., under the terms of the agreement, is the Operator.

Drilling, completion and equipping costs are expected to be $1.9 million ($350,000 net to Trans Canada). The well costs are fully funded out of production cash flow, thereby preventing any share dilution.

Commented Tim Coupland, "We are excited to be drilling and advancing our third new well, the 5-23 multi-lateral oil well, adjacent to our first highly successful 12-14 Multilateral Well drilled in October 2023. This will be our third multi-lateral oil well drilled with Croverro, a reliable and experienced partner, a key step in advancing growth and production goals. Croverro has proven to be a very competent operator providing low operating cost and consistent production days. We believe drilling multi-lateral horizontal wells with good well control and utilizing new computer modelling and seismic techniques will provide continued drilling success. The partnership is allowing the Company to grow steadily and prosper as world oil prices continue to remain stable."

ABOUT TRANS CANADA GOLD CORP. - OIL AND GAS PRODUCTION/REVENUE PRODUCING WELLS

The Company is a discovery focused Oil & Gas Resource Development and Mineral Exploration Company that is currently focused on developing and drilling its' production of conventional heavy oil exploration properties, increasing production capabilities, and increasing future oil production revenues through responsible exploration. The Company identifies, acquires and finances with its working interest partners, the ongoing development of oil and gas assets primarily situated in Alberta Canada. The Company has qualified Senior exploration management and Geological teams of professionals, seasoned in exploration production, field exploration and drilling. The Company currently works with Croverro Energy Ltd., who has demonstrated proficiency, expected of an experienced oil and gas technical team that has proven oil production, and revenue success with large multi-lateral wells currently under their supervision. The Company has the necessary manpower in place to develop its natural resource properties and manage its production properties. The Company is committed to minimizing risk through selective property acquisitions, and responsible exploration drilling, and maximizing long term petroleum and natural gas resource assets.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO
Trans Canada Gold Corp.
Tel: (604) 681-3131
astar@telus.com
www.transcanadagold.com

or

Christian Timmins, Director
Trans Canada Gold Corp.
Tel: (403) 597-3410

Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Trans Canada Gold Corp.

View the original press release on ACCESS Newswire

FAQ

What is the expected cost and timeline for TTGXF's new Sparky multi-lateral well?

The new 5-23 well is expected to cost $1.9 million ($350,000 net to Trans Canada) and is scheduled for drilling in summer/Q3 2025, subject to Alberta Energy Regulator approval.

How much oil has TTGXF's existing Lloyd 12-14 well produced since 2023?

The Lloyd 12-14 well has produced over 85,000 barrels of oil since its drilling in 2023 and continues to produce consistently month over month.

What is TTGXF's working interest percentage in the new Sparky well project?

Trans Canada Gold Corp. has an 18.75% working interest in the joint venture with Croverro Energy

How will TTGXF finance the new well drilling costs?

The well costs will be fully funded out of production cash flow, preventing any share dilution.

How many meters of Sparky formation is the new TTGXF well expected to open?

The new 5-23 well is planned to open an estimated 3000 meters of Sparky formation.