California, May 23, 2025 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: TPET) (“Trio” or the “Company”), a California-based oil and gas company, has decided to suspend operations at McCool Ranch and will terminate its efforts to acquire a working interest in the project. We 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 emplo ...

Core Viewpoint - Trio Petroleum Corp has successfully acquired additional petroleum and natural gas properties from Novacor Exploration Ltd, positioning the company for growth in the heavy oil sector of Lloydminster, Saskatchewan, which is recognized for its potential in long-term production and reserve growth [1][2]. Acquisition Details - The acquisition includes the remaining Novacor TWP47 assets located in the South-West quarter of Section 19, Township 47, Range 26W3M, and the Northeast Section 3, Township 48, Range 24W3M, both in the Lloydminster area [2]. - The total purchase price for the acquisition was US$650,000 in cash and 526,536 shares of common stock, with an initial good faith deposit of $65,000 [6]. Production and Operational Insights - There are currently seven producing wells on the acquired properties, with production from Section 19 subject to Freehold Royalties of 13.5% and a GORR of 2%, while Section 3 has Freehold Royalties of 15% [2]. - Novacor, as the operator, has the capability to rapidly double production, and the area is home to major industry players, indicating a competitive environment for heavy oil production [2]. Cost Management and Efficiency - Novacor's current lift cost is CDN $10.00 per barrel, which is considered competitive and is expected to help maintain profitability even in lower oil price environments [4]. - The company emphasizes its commitment to cost management and efficient production techniques, which are believed to provide a significant advantage in navigating market fluctuations [4]. Strategic Growth Plans - Trio plans to aggressively expand its footprint in the area, leveraging Novacor's operational efficiencies, and aims to deliver consistent value to shareholders through disciplined operations and cost management [5]. - The immediate plan includes initiating a workover program to increase production on the newly acquired assets, with expectations of reflecting benefits in the upcoming quarters [5].

Core Viewpoint - Trio Petroleum Corp has entered into a Letter of Intent to acquire 2000 acres at P.R. Spring, Unita Basin, Utah, which is estimated to contain 6.75 billion barrels of oil in place (OOIP) [1][6] Acquisition Details - Trio has made a non-refundable payment of $150,000 to Heavy Sweet Oil LLC for the option to acquire the land [7] - Upon closing the transaction, Trio is expected to issue 1,492,272 restricted shares and pay $850,000 in cash for the acquisition and development of the project [8] - Trio will provide 100% of the required capital expenditures for the project and will share net profits equally with HSO [9] Project Economics - The project is projected to support up to 1000 wells, with an estimated ultimate recovery (EUR) of 300,000 barrels of oil per well and a stable production rate exceeding 40 barrels per day [2] - Once fully developed, the project could yield upwards of 50,000 barrels per day over an approximate 20-year life [2] Product Composition and Market Potential - The initial product will be commercial grade asphalt, accounting for 90% of production, with the remaining 10% being a diesel range product [3] - Both products are expected to have a low carbon footprint and could sell at a premium to West Texas Intermediate (WTI) prices [3][4] Industry Context - The P.R. Spring Project is noted to be one of the largest tar-sand deposits in North America outside of Canada, characterized by low wax and negligible sulfur content, making it highly desirable for various industries [6]

Core Viewpoint - Trio Petroleum Corp has successfully acquired certain petroleum and natural gas properties from Novacor Exploration Ltd, positioning itself strategically in the Lloydminster heavy oil region of Saskatchewan, which is expected to enhance long-term production and reserve growth potential [1][4][7]. Acquisition Details - The acquisition includes Novacor's TWP48 and TWP47 assets, with the purchase price set at US$650,000 in cash and 526,536 shares of common stock [8][9]. - The properties are located in the Lloydminster area, featuring seven producing wells with current production of approximately 70 barrels per day [2][3]. Production and Operational Efficiency - The wells produce heavy crude oil from the McLaren/Sparky and Lloydminster formations, with Freehold Royalties of 13.5% and 15% applicable to different sections [2]. - Novacor's current lift cost is CDN $10.00 per barrel, which is competitive and supports profitability even in lower oil price environments [5][6]. Strategic Positioning - The acquisition allows Trio to leverage Novacor's operational efficiencies and experience in the area, which is home to major industry players [7]. - The company aims to grow its footprint in the region and is focused on acquiring projects that generate immediate cash flow or offer transformative growth potential [7]. Future Potential - A Reserve Report indicates a total proved and probable oil of 91.5 million barrels from the wells currently being produced, with further upside potential identified [3]. - The strategic focus on operational efficiency and low lift costs provides a buffer against market volatility, enhancing the company's resilience [4][5].

Revenue Generation - Trio Petroleum Corp. recognized its first revenues in the fiscal quarter ended April 30, 2024, following the restart of operations at the McCool Ranch Oil Field on February 22, 2024[154]. - Revenues for the three months ended January 31, 2025, were $10,819, an increase from zero revenue in the prior period, with approximately 180 barrels of oil sold[188]. Project Developments - The company holds an approximate 85.775% working interest in the South Salinas Project, with a net revenue interest of approximately 68.62% after royalties[155]. - Trio Petroleum Corp. acquired a 22% working interest in the McCool Ranch Oil Field, which includes six oil wells and related infrastructure, effective October 1, 2023[158]. - The Asphalt Ridge Project is estimated to contain 10.8 billion barrels of bitumen in the Uintah Basin deposits, with the company acquiring an option for a 20% working interest in certain leases[166]. - The company plans to develop 240 acres at Asphalt Ridge with an estimated 119 wells using advanced cyclic-steam production techniques[169]. - The company is assessing the viability of restarting the HH-3 and HH-4 wells, which will have horizontal completions similar to the HH-1 well[162]. - The Asphalt Ridge Project has secured necessary permits to commence drilling, with an arrangement for an 8% state royalty being pursued[168]. - The company is evaluating the potential for additional horizontal wells at McCool Ranch, with an estimated capacity for approximately 22 more wells[164]. - The company commenced drilling activities at Asphalt Ridge, with the first well reaching a total depth of 1,020 feet and finding a 100-foot tar-sand pay zone[171]. - Oil production has started using downhole heaters, with plans to transition to advanced cyclic-steam and steam-drive methods[171]. Financial Performance - The company reported a net loss of $1,615,525 for the year ended January 31, 2025, with an accumulated deficit of $21,689,204[174]. - General and administrative expenses decreased by approximately $246,144, or 25.7%, compared to the prior period[187]. - The company has a working capital of $547,056 as of January 31, 2025, indicating liquidity challenges[174]. - As of January 31, 2025, the company's working capital improved to $547,056 from a deficiency of $(2,025,480) as of October 31, 2024, driven by an increase in current assets to $2,015,019 and a decrease in current liabilities to $1,467,963[195]. - For the three months ended January 31, 2025, net cash used in operating activities was $(920,485), compared to $(774,431) for the same period in 2024, primarily due to a net loss of $1,615,525[198]. - Cash provided by financing activities surged to $2,756,520 for the three months ended January 31, 2025, compared to $84,022 in 2024, mainly from approximately $3.5 million in net proceeds from the issuance of common shares[201]. - The company reported a net change in cash of $1,675,256 for the three months ended January 31, 2025, contrasting with a decrease of $(1,213,176) in the same period of 2024[197]. - Cash used in investing activities decreased to $160,779 for the three months ended January 31, 2025, from $522,767 in 2024, reflecting reduced capital expenditures[200]. Capital and Funding - The company has raised a total of $2,371,500 through convertible note financing in October and December 2023[174]. - The company has until April 10, 2025, to pay an additional $1,775,000 to exercise an option for a 17.75% working interest in the Asphalt Ridge leases[185]. - The company anticipates requiring additional capital funding to cover development and operating costs until revenue streams are fully implemented[177]. Asset Management - A Carbon Capture and Storage project is being initiated as part of the South Salinas Project, which could permanently store vast volumes of CO2[173]. - The company has paid a total of $225,000 to HSO for infrastructure costs related to the ARLO Agreement, obtaining a 2.25% interest in the leases as of January 31, 2025[208]. - The company holds various leases related to unproved properties, with ongoing compliance in rental payments, including $30 per acre per year for certain leases[204]. - The company plans to utilize six wellbores acquired in the South Salinas Project for future production and development activities, with associated asset retirement obligations recorded[218]. Reserves and Future Expectations - Trio Petroleum Corp. expects to add the reserve value of the McCool Ranch Field to its reserve report after further observation of the restarted oil production[164]. - The company expects to add the reserve value of producing fields to its reserve report after further observation and review of oil production[214].

Core Viewpoint - Trio Petroleum Corp is actively expanding its operations through the Asphalt Ridge Project in Utah and a potential acquisition of oil and gas properties from Novacor Exploration Ltd in Saskatchewan, aiming to enhance its position in the heavy oil sector [1][5]. Asphalt Ridge Project - The Asphalt Ridge Project is a significant heavy-oil and tar-sand development located in Uintah County, Utah, where Trio Petroleum has secured an option to acquire a 20% interest [2][3]. - The company currently holds a 2.25% working interest in 960 acres at Asphalt Ridge and has the option to acquire an additional 17.75% interest in the same area, along with a 20% interest in an adjacent 1,920 acres [3]. - The project is noted for its low wax and negligible sulfur content, making it desirable for various industries, with an estimated ultimate recovery (EUR) of 300,000 barrels of oil per well and an initial production rate of approximately 40 barrels per day [4]. Novacor Exploration Ltd Oil and Gas Assets - Trio Petroleum has entered into a non-binding Letter of Intent to acquire a 100% working interest in certain petroleum and natural gas properties held by Novacor Exploration Ltd, located in the Lloydminster heavy oil region of Saskatchewan [5]. - The Lloydminster area is characterized by shallow wells with an average true vertical depth of just under 1,830 feet, making it economically viable for small producers [5]. - The acquisition could strategically position Trio to expand its operations in one of North America's promising heavy oil basins, with potential for long-term production and reserve growth [5]. Current Production and Future Plans - There are currently seven producing wells on the Novacor properties, producing approximately 70 barrels per day, with potential for additional production from re-entry wells [6]. - Trio and Novacor have agreed to extend the execution of definitive acquisition documents to March 15, 2025, with plans for further extensions if necessary [6].

Core Viewpoint - Trio Petroleum Corp is actively expanding its operations through the Asphalt Ridge Project in Utah and the acquisition of assets from Novacor Exploration Ltd in Saskatchewan, positioning itself in promising heavy oil regions [1][5]. Asphalt Ridge Project - Trio Petroleum Corp has secured an option to acquire a 20% interest in a heavy-oil and tar-sand development project at Asphalt Ridge, Utah, with successful drilling results showing over 190 feet of oil-pay in one well and over 100 feet in another [2][4]. - The company currently holds a 2.25% working interest in 960 acres at Asphalt Ridge and has the option to acquire an additional 17.75% interest in the same area, along with a 20% interest in an adjacent 1,920 acres [3][4]. - The project is noted for its low wax and negligible sulfur content, making it desirable for various industries, with a typical well estimated to recover 300,000 barrels of oil and an initial production rate of approximately 40 barrels per day [4]. Novacor Exploration Ltd Oil and Gas Assets - Trio Petroleum Corp has entered a non-binding Letter of Intent to acquire a 100% working interest in certain petroleum and natural gas properties from Novacor Exploration Ltd, located in the Lloydminster heavy oil region of Saskatchewan [5]. - The Lloydminster area is characterized by shallow wells with an average depth of just under 1,830 feet, making it economically viable for small producers [5]. - The acquisition could strategically position Trio in one of North America's most promising heavy oil basins, with potential for long-term production and reserve growth [5][6]. Current Production and Future Potential - There are currently seven producing wells on the Novacor properties, producing approximately 70 barrels per day, with the potential for additional re-entry wells and locations to be reactivated [6]. - Trio Petroleum Corp plans to negotiate an extension for the execution of definitive acquisition documents if not completed by March 15, 2025 [6].

Financial Performance and Losses - The company reported revenues of $213,204 for the year ended October 31, 2024, with a net loss of $9,626,797 and cash flows used in operating activities of $3,840,744[99] - For the year ended October 31, 2023, the company generated no revenues, reported a net loss of $6,544,426, and cash flows used in operating activities of $4,036,834[99] - As of October 31, 2024, the company had an accumulated deficit of $20,073,679, raising substantial doubt about its ability to continue as a going concern[99] - The company is in the exploration stage and has generated substantial net losses, with future performance uncertain due to lack of historical data and operational risks[119] Permits and Regulatory Challenges - The company currently has permits from Monterey County for the HV-1, HV-2, HV-3A, and HV-4 wells, allowing each well to be tested for an 18-month period[103] - The company is seeking additional permits from regulatory agencies, including conditional use permits, drilling permits, and permits for long-term production[104] - The company's operations are vulnerable to delays and obstacles in obtaining necessary permits from federal, state, county, and local agencies[101] - Compliance with environmental, health, and safety regulations may result in material liabilities and costs[140] Operational Risks and Dependencies - The company's contractor model for drilling operations makes it dependent on the availability of drilling rigs and personnel, which could hinder operations[105] - The company may face challenges in securing drilling rigs, equipment, and personnel, which could delay exploration and development plans[123] - Oil and natural gas operations face operational risks including fires, blowouts, spills, and equipment failures[136][137] - Development schedules for oil and natural gas projects are subject to delays and cost overruns due to equipment and personnel availability[138] - The company's operations may be dependent on unreliable or costly sources of electricity and natural gas[143] Capital and Financial Risks - The company operates in a highly capital-intensive industry, with significant upfront costs for oil and gas exploration and production, and no guarantee of covering expenses through production[113] - Future cash flow is dependent on variables such as market prices of oil and gas, reserves, ability to acquire new reserves, and operating expenses[114] - The company requires substantial additional capital for exploration, appraisal, development, and production activities, which may not be available on favorable terms[124] - A decline in global or local oil and natural gas prices could significantly impact the company's revenue, profitability, and ability to finance operations[128] - The company may incur substantial losses from future operations due to inadequate insurance coverage[142] Exploration and Production Uncertainties - The company faces substantial uncertainties in estimating asset characteristics, including size and quality, due to reliance on geological and engineering interpretations[115] - Drilling wells is speculative, with significant costs that may exceed estimates, and no assurance of discoveries or additions to reserves[118] - Seismic studies do not guarantee the presence or economic viability of oil and gas reserves[122] - Oil and natural gas exploration and production activities are subject to numerous risks, including the risk that drilling will not result in commercially viable production[133] - Undeveloped discoveries may not produce oil and natural gas in commercial quantities or at anticipated costs, potentially leading to project abandonment[135] Market and Regulatory Risks - Marketability of future oil and natural gas production is affected by factors such as price fluctuations, transportation availability, and government regulations[134] - Climate change regulations and energy transition issues may constrain and impede the oil and gas industry[144] - Acquisitions and integration of significant assets may be difficult and could adversely affect the company's results of operations[148][149] - Inflationary pressures have increased construction material and labor costs, particularly for steel, cement, and other materials, leading to higher budgeted construction costs[160] Stock Market and Listing Issues - The company's common stock began trading on the NYSE American in April 2023 under the symbol "TPET," but there is no assurance of an active and liquid trading market continuing[162] - On February 26, 2024, the company received a notice from NYSE American for non-compliance with continued listing standards due to low stock price, but trading continued with a ".BC" designation[165] - On May 1, 2024, the company regained compliance with NYSE American listing requirements as the 30-day average stock price reached $0.25 ($5.00 post-reverse split)[166] - On November 5, 2024, NYSE American suspended trading of the company's common stock due to low selling price, but trading resumed on November 15, 2024, after a reverse stock split[167] - If delisted from NYSE American, the company's common stock may trade over-the-counter, potentially reducing liquidity, market price, and analyst coverage[168] - Delisting could subject the company's common stock to "penny stock" rules, imposing additional sales practice requirements on broker-dealers and limiting liquidity[169] - The company's share price has been highly volatile, trading between $60.00 and $1.12 (post-reverse split) since its IPO[171] - The company's stock price may be influenced by factors such as oil and natural gas prices, exploration success, regulatory developments, and general market conditions[176] Corporate Governance and Reporting - The company is classified as an "emerging growth company" under the JOBS Act, exempting it from certain reporting requirements for up to five years[175] - The company is classified as a "smaller reporting company" and is not required to provide quantitative and qualitative disclosures about market risk[266] - The company does not intend to pay dividends on its common stock in the foreseeable future[178] Related Party Transactions and Conflicts - The company faces potential conflicts of interest in negotiations with related parties, such as Lafayette Energy Corp and Trio LLC, due to overlapping management roles[106] - The company acquired an approximate 22% working interest in the McCool Ranch Oil Field from Trio LLC in October 2023[109] Financial Statement Risks - The company's financial statements do not include adjustments for potential impairments or contingent liabilities that may arise if it cannot fulfill operational commitments[100]

Core Points - Trio Petroleum Corp has fully repaid senior secured convertible promissory notes totaling $1.6 million as of January 7, 2025, which were issued in April and June 2024 [1][2] - The repayment of these notes has removed the associated security interest in all of Trio's assets, allowing the company to focus on business growth [2][3] - The company plans to rework existing wells and develop new assets, aiming for projects that generate immediate cash flow or offer transformative growth potential [3] Company Overview - Trio Petroleum Corp is based in Bakersfield, California, and operates in Monterey County, California, and Uintah County, Utah [4] - In Monterey County, the company holds an 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields and a 21.92% working interest in 800 acres in the McCool Ranch Field [4] - In Uintah County, Trio owns a 2.25% working interest in 960 acres and has options to acquire additional interests in both the 960 acres and an adjacent 1,920 acres [4]

Core Viewpoint - Trio Petroleum Corp has entered into a non-binding Letter of Intent to acquire a 100% working interest in certain petroleum and natural gas properties from Novacor Exploration Ltd, located in the Lloydminster heavy oil region of Saskatchewan, which could enhance Trio's operational footprint in a promising heavy oil basin [1][4]. Acquisition Details - The acquisition involves properties with seven producing wells, currently generating approximately 70 barrels per day, with potential for additional production through reactivation of shut-in wells and new drilling opportunities [2][3]. - The stated purchase price for the acquisition is CAD 2 million (approximately USD 1.4 million), with an initial cash payment of USD 650,000 and the remainder in common stock [5]. Production and Financial Aspects - Current production from the wells is subject to Freehold Royalties of 13.5% and 15%, with additional potential production from reactivated wells estimated to add 10 barrels per day each [2]. - A Reserve Report indicates total proved and probable oil reserves of 91.5 million barrels for the wells currently in production [3]. Strategic Importance - The acquisition is seen as a strategic move to expand operations in a region known for its economic development and low operational costs, with major industry players already established in the area [4]. - Trio plans to leverage its relationship with Novacor, which has a strong history in oil and gas development, to aggressively grow its presence in the Lloydminster area [4].