California’s Trio Petroleum Corp. is purchasing petroleum and gas assets in the Lloydminster, Saskatchewan heavy oil region in a cash-and-stock deal, the company said April 10.
Trio agreed to buy the assets, TWP48 and TWP47, from Novacor Exploration Ltd. Trio said it will pay $650,000 cash and 526,536 shares of common stock, for a total of roughly $1.38 million based on the company’s April 10 closing share price. Trio has closed on Novacor's TWP48 assets and expects to close soon on the TWP47 assets.
Trio said the assets consist of seven producing wells with output of 70 bbl/d from the McLaren/Sparky and Lloydminster formations. Trio said the assets hold the potential for four additional re-entry wells and two fully equipped locations to be reactivated—each capable of an additional 70 bbl/d. Novacor is the operator of the wells, which are cash flow positive, Trio said.
"Our focus remains on acquiring projects that generate immediate cash flow or offer transformative growth potential with strategic investment, said Trio CEO Robin Ross. “We believe that this approach aligns with our long-term vision of creating exponential value while managing risk and resources effectively.”
An August 2024 reserve report prepared by Petrotech and Associates detailed 91,500 bbl of total proved and probable oil in the wells currently being produced. Novacor has identified further potential upside in the Sparky GP through some multi-lateral drill opportunities.