Trio Petroleum Corp. (TPC) signed an agreement May 11 to acquire working interests in a producing oil asset in California’s Union Avenue Field, according a press release. (Source: Shutterstock.com)
Trio Petroleum Corp. (TPC) signed an agreement May 11 to acquire working interests in a producing oil asset in California’s Union Avenue Field, according to a press release.
The deal would give TPC a 20% working interest in the field, as well as an opportunity to acquire the remaining 80% working interest — potentially giving the company a 100% working interest in the asset.
TPC will pay for the acquisition through a combination of cash and common stock. The transaction is expected to close within 60 days, according to a May 12 press release.
The agreement, between TPC and seller Trio Petroleum LLC (TPL), is considered a related-party transaction because the company is partly owned and controlled by TPC management. TPC formed a special committee to review and negotiate the deal with its subsidiary.
The asset will be appraised by an independent third party, KLS Petroleum Consulting LLC.
RELATED: Trio Petroleum Adds Leasehold to South Salinas Project
CEO Frank Ingriselli said the company is in an “optimal position” to acquire TPL’s producing oil asset.
“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,” he said. “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.”
TPC, based in Bakersfield, California, holds approximately 9,267 acres in the South Salinas Project, where it owns an 85.75% working interest. Trio plans to complete drilling its HV-1 confirmation well and, in the near term, to drill a second well named HV-2 well. Over the years, Union Avenue Field’s total production approximate total of 2.3 million bbl, in addition to 1.2 Bcf, Trio said.
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