Trio Petroleum said it will suspend its operations at McCool Ranch about five months after restarting production in the California oil field and will terminate its efforts to acquire a working interest in the project.
鈥淲e have made this determination, because, under previously negotiated terms, natural gas prices and water disposal costs, particularly in California, where McCool Ranch is located, makes it cost prohibitive for the Company to employ cyclic-steam operations to increase production and will not be economically feasible in the long run,鈥� the company said May 23.
Trio, based in California, has instead decided to focus its efforts on other sites it sees as more economically feasible.
Trio had a brighter outlook on McCool in January, when it said current oil prices and other considerations made the timing for a restart ideal.
Trio Petroleum acquired approximately 22% working interest in McCool Ranch in 2023. The property is fully permitted for oil and gas production, cyclic-steam injection and water disposal and is being restarted after having been idle since about 2015.
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