Trio Petroleum to Acquire Union Avenue Field Interests
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Trio Petroleum has signed an acquisition agreement to potentially acquire up to 100 percent of the working interest in the Union Avenue Field located in Bakersfield, California.
“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,” said Frank Ingriselli, Trio’s chief executive officer.
“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,” added Ingriselli.
The agreement is between Trio Petroleum Corp. and Trio Petroleum LLC, on behalf of itself as operator and holding a 20 percent working interest in Union Avenue as well as to facilitate the remaining 80 percent working interest holders. Trio Petroleum LLC is partly owned and controlled by members of Trio’s management and a special committee of Trio’s board of directors has been formed to evaluate and negotiate the terms of this acquisition.
Trio has engaged KLS Petroleum Consulting, 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.
If final terms are agreed between Trio and the sellers, the transaction is expected to close within 60 days.
Trio Petroleum is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California. Trio has a large, approximately 8,600-acre asset called the South Salinas Project Asset where it owns an 85.75 percent working interest. Trio’s immediate plans are to commence drilling of its HV-1 confirmation well followed by drilling a second well named HV-2. Previous operations on this asset have successfully drilled two (2) production/discovery wells which Trio now owns.
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