Trio Petroleum to acquire up to 100% of Union Avenue oil, gas field in California

(WO) – Trio Petroleum Corp. announced the signing of an Acquisition Agreement dated May 11, 2023 to potentially acquire up to 100% of the working interest in the Union Avenue oil and gas field in Bakersfield, California.

Trio has engaged KLS Petroleum Consulting LLC, 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 MMbbl of oil and 1.2 Bcf of gas, with significant remaining long-term, oil-production potential, including from a recent, partly-developed, new-pool discovery. Acquisition of Union Avenue could help Trio to become cash flow positive.

If final terms are agreed between Trio and the sellers, the transaction is expected to close within 60 days.

Mr. Frank Ingriselli, Trio’s Chief Executive Officer, commented, “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.”