As of the most recent check, shares of Trio Petroleum Corp. (NYSE: TPET) were skyrocketing on the US stock charts by an astounding 237.01%, trading at $2.77. The company’s announcement of a significant purchase in the energy sector preceded the spike.
Trio Made A Calculated Acquisition Move
A non-binding Letter of Intent (LOI) has been signed by Trio Petroleum (TPET) to purchase a 100% working interest in Novacor Exploration Ltd.’s natural gas and petroleum assets. The sites are located in Saskatchewan, Canada’s rich Lloydminster heavy oil basin.
Strategic Entry into Heavy Oil Basin
Trio Petroleum has a huge chance to get into one of the most attractive heavy oil basins in North America with the planned acquisition. The area is well known for its cheap operating expenses, strong market accessibility, and favorable regulatory frameworks, as well as its potential for socioeconomic development.
Because of these advantages, Lloydminster is a desirable location for long-term production and reserve expansion. The transaction, if completed, will increase Trio Petroleum’s activities and fortify its portfolio.
Overview of Novacor’s Assets
The Novacor properties include seven producing wells located across two parcels in the Lloydminster area. These wells currently yield heavy crude oil from the McLaren/Sparky and Lloydminster formations, producing approximately 70 barrels per day (bpd).
With four additional re-entry wells and two fully equipped but inactive locations, Novacor estimates production could increase by an additional 70 bpd. Furthermore, two shut-in wells await reactivation and commingling, with an estimated cost of C$30,000 per well and potential output of 10 bpd each.
An August 2024 Reserve Report by Petrotech and Associates highlighted a total of 91.5 MBBL of proved and probable reserves. Novacor has also identified further growth potential in the Sparky GP through multi-lateral drilling opportunities.
TPET Positioning for Growth
Trio Petroleum’s expansion into the Lloydminster region aligns with its strategy to focus on projects delivering immediate cash flow and transformative growth. The area is home to industry leaders such as Cenovus Energy and Canadian Natural Resources.
Trio Petroleum (TPET) aims to leverage Novacor’s expertise to aggressively grow its footprint while pursuing additional high-value opportunities. This acquisition complements the company’s ongoing investment in projects like the Asphalt Ridge Project in Utah, underscoring its commitment to strategic growth in the energy sector.
