Trio Petroleum Corp (NYSE: TPET) stock has exhibited a notable surge of 22.06% during the post-market trading session, settling at $0.3602. The closing price of Trio Petroleum shares during the standard trading hours concluded at $0.2951, marking a decline of 28.02%. This after-hours resurgence in TPET stock has effectively ameliorated the earlier losses incurred during the conventional trading session, attributing this rebound to a shrewd strategic maneuver executed by the company.
This week, Trio Petroleum (TPET) successfully acquired a substantial 22% working interest in the McCool Ranch Oil Field, strategically located in Monterey County, just seven miles north of TPET’s flagship South Salinas Project. The acquisition was accomplished through dedicated financial resources allocated for work commitment expenditures.
McCool Ranch is divided into three developed sections, with Trio’s focus squarely on the Hangman Hollow Area. This segment is equipped with a range of essential infrastructure, including horizontal and vertical oil wells, water-disposal and freshwater wells, steam generation and distribution facilities, tankage, and pipelines. The property is fully permitted for oil and gas production, cyclic-steam injection, and water disposal, although it currently lies dormant.
Trio Petroleum’s investment is poised to reignite production at the field, with the expectation of generating significant cash flow for the company. Furthermore, the property’s untapped potential holds promise, with numerous unexplored well locations identified.
Initially, oil wells will be restarted without steam injection, transitioning over time to cyclic-steam stimulation (CSS) operations, also known as ‘huff and puff.’ This transition is expected to yield a disproportionate share of cash flow until the work commitment funds are fully paid out, projected to occur within the first year of production restart.
The commencement of “cold oil” production is slated to span approximately two months, following the completion of necessary well remediation and facility inspections. The CSS process will then be implemented, involving steam injection and soak periods for each well, anticipated to extend over several years.
Trio Petroleum (TPET) views this acquisition as a pivotal move in building a portfolio of premium development and exploration opportunities, thus diversifying the company’s assets and igniting future growth prospects.
