Trio Petroleum Corp Sees Shares Surge by 300%

Investing.com — Shares of Trio Petroleum Corp skyrocketed by 300% early Thursday after the company announced a non-binding Letter of Intent (LOI) to acquire a 100% working interest in certain petroleum and natural gas properties from Novacor Exploration Ltd. The purchase, if finalized, would provide Trio Petroleum access to the heavy oil region of Lloydminster, Saskatchewan, noted for economical development and low operational costs.

The market's enthusiastic response highlights Trio Petroleum's intent to strategically position within one of North America's most promising heavy oil basins. The company is optimistic about the potential for long-term production and reserve growth through this acquisition. The assets in question currently feature seven producing wells, with a total output of approximately 70 barrels per day, along with prospects for expansion.

Trio Petroleum provided details indicating that the Novacor assets include a Reserve Report by Petrotech and Associates, showing 91.5 million barrels of total proved and probable oil for the wells in production. Additional development opportunities also exist through multi-lateral drilling identified within the Sparky formation.

The proposed acquisition terms outline a purchase price of CA$2 million (roughly US$1.4 million), combining cash and common stock of Trio Petroleum. The company has already secured a good faith deposit of $65,000 towards the cash portion. Although the LOI is not binding until definitive acquisition documents are signed, it includes obligations for confidentiality and exclusivity. Both Novacor and Trio’s board approvals, along with obtaining sufficient financing, are required for closure.

CEO Robin Ross expressed excitement at establishing a foothold in a region with major industry players. The company intends to expand aggressively, leveraging Novacor's operational experience while focusing on projects that provide immediate cash flow or substantial growth potential.

Market reactions indicate strong investor confidence in Trio Petroleum's strategic plans and the potential to create value through this acquisition. The LOI will remain active until either the definitive documents are executed or February 15, 2025, unless both parties mutually agree to extend it.

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