Trio Petroleum Corp. Signs Acquisition Agreement to Acquire up to 100% of Producing Asset
Union Avenue Field is Located in Bakersfield, California
DANVILLE, CA, May 12, 2023 (GLOBE NEWSWIRE) -- Trio Petroleum Corp. (NYSE American: TPET) (“Trio”), an oil and gas exploration and development company focused on strategic, high growth energy projects in California, today announced the signing of an Acquisition Agreement dated May 11, 2023 (the “Agreement”) to potentially acquire up to 100% of the working interest in the Union Avenue Field (“Union Avenue”) located in Bakersfield, California.
The Agreement is between Trio Petroleum Corp. and Trio Petroleum LLC, on behalf of itself as Operator and holding a 20% working interest in Union Avenue as well as to facilitate the remaining 80% working interest holders (“Sellers”). As Trio Petroleum LLC is partly owned and controlled by members of Trio’s management, this would be a related party transaction, and a special committee of Trio’s board of directors (the “Trio Special Committee”) has been formed to evaluate and negotiate the terms of this acquisition.
Trio has engaged KLS Petroleum Consulting LLC, an independent engineering firm, to conduct a comprehensive analysis and valuation of the asset, which analysis has been delivered to the Company and is being evaluated by the Trio Special Committee.
Union Avenue is a mature field that has produced an approximate cumulative 2.3 million barrels of oil and 1.2 billion cubic feet of gas, with significant remaining long-term, oil-production potential, including from a recent, partly-developed, new-pool discovery. Acquisition of Union Avenue could help Trio to become cash flow positive.
If final terms are agreed between Trio and the Sellers, the transaction is expected to close within 60 days. Consideration for the acquisition is expected to be paid by Trio through a combination of cash and Trio’s common stock.
Mr. Frank Ingriselli, Trio’s Chief Executive Officer, commented, “Trio is in an optimal position to capitalize on the acquisition of this producing oil asset, thereby capturing what we believe to be economically valuable for our shareholders. As we continue to develop our South Salinas Project and expand our portfolio, we are confident that our strategic growth initiatives will drive sustainable success and deliver economic returns. We remain committed to leveraging our expertise, resources, and market insights to maximize synergies and unlock the full potential of our acquisitions, solidifying our position as a leader in the industry.”
South Salinas Project Update
Drilling operations at Trio’s HV-1 well on the South Salinas Project is continuing and the company expects to report preliminary results from the well early next week.
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. Trio has a large, approximately 9,267-acre asset called the “South Salinas Project” where it owns an 85.75% working interest. Trio’s plans to complete drilling the HV-1 confirmation well and in the near term to drill a second well named HV-2 well. Previous operations on this asset have successfully drilled two (2) production/discovery wells that Trio now owns.
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.
Trio Contact:
Frank C. Ingriselli
CEO
Trio Petroleum Corp
www.trio-petroleum.com
Ingriselli@gvest.com
