Trio to acquire producing oil and gas assets in prolific heavy oil region of Saskatchewan Canada

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].