FACT-MASTER
5 months ago
PROPOSAL NO. 3 — THE 2022 PLAN AMENDMENTS PROPOSAL
Background
The stockholders are being asked to approve amendments to Sections 5(a) and 5(b) of the 2022 Plan to (i) increase the number of shares of common stock reserved for issuance with respect to awards granted under the 2022 Plan from 4,000,000 shares of common stock to 10,000,000 shares of common stock and (ii) increase the maximum number of shares of common stock that may be issued pursuant to the exercise of incentive stock options under the 2022 Plan (“ISOs”) from 4,000,000 shares of common stock to 10,000,000 shares of common stock.
We believe strongly that the increase in shares of common stock reserved for issuance with respect to awards granted under the 2022 Plan and the increase in the maximum number of shares of common stock which may be issued pursuant to ISOs under the 2022 Plan is essential to our continued success and therefore is in the best interests of the Company and our stockholders. Our employees are our most valuable assets. The Board believes that grants of stock options, restricted stock units, performance-based restricted stock units and other equity awards under the 2022 Plan help create long-term equity participation in the Company and thereby assist us in attracting, retaining, motivating and rewarding employees, directors, and consultants. The Board also believes that long-term equity compensation is essential to link executive pay to long-term stockholder value creation.
As of June 18, 2024, the Record Date, there were 455,000 shares of common stock remaining available for the grant of awards under the 2022 Plan. On June 20, 2024, we entered into an offer letter with our new director, Robin Ross, agreeing to award him 1,000,000 restricted stock (“RSUs”) under the 2022 Plan. Of the 1,000,000 RSUs, 450,000 are being awarded immediately and the remaining 550,000 RSUs will be awarded, shortly after this Proposal No. 3 is approved by stockholders, if approved. Therefore, as of the date of the proxy statement there are only 5,000 shares of common stock remaining available for the grant of awards under the 2022 Plan. Without these increases, we will be limited, in the future, as to the number of shares of common stock we will have available for the granting of additional awards, including ISOs, to employees, which could make it difficult for us to retain our current employees and to also attract new highly qualified employees. Our ability to attract and retain qualified directors to serve on our Board is also contingent on our ability to provide them with compensation in the form of equity which is comparable with the equity compensation provided to directors of other public companies in our industry. This cannot be accomplished without an increase in the 4,000,000 shares of common stock currently available under the 2022 Plan. Finally, 10,000,000 shares of common stock, which is the number of shares that the Board has approved to be reserved under the 2022 Plan represents approximately 19.9% of the 50,328,328 shares of common stock issued and outstanding as of June 18, 2024, the Record Date, which the Board has determined reasonable and necessary to properly compensate our employees and directors.
The above-described amendments to the 2022 Plan to (i) increase the number of shares of common stock reserved for issuance with respect to awards granted under the 2022 Plan from 4,000,000 shares of common stock to 10,000,000 shares of common stock and (ii) increase the maximum number of shares of common stock that may be issued pursuant to the exercise of ISOs from 4,000,000 shares of common stock to 10,000,000 shares of common stock was approved by the Board by unanimous written consent dated April 30, 2024, and will not be effective unless and until it is approved by our stockholders. If our stockholders do not approve the amendments to the 2022 Plan, the amendment will not take effect, but we may continue to grant rights to purchase shares under the 2022 Plan in accordance with the current terms and conditions of the 2022 Plan; provided, however, that no awards will be made under the 2022 Plan for an aggregate number of shares of common stock in excess of 4,000,000 shares and no awards will be made in the form of ISOs to the extent that the aggregate of number of shares of common stock which can be issued under all ISOs exceeds 4,000,000 shares of common stock, unless and until the stockholders approve amendments to the 2022 Plan, with respect to such increases. The Board has determined that it is in the best interests of us and our stockholders that these amendments to the 2022 Plan be approved and is asking our stockholders for their approval of these amendments to the 2022 Plan. The form of Amendment No. 1 to the 2022 Equity Incentive Plan, which includes these amendments only is attached as Annex B to this Proxy Statement.
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Explanation of Amendments
Section 5(a) of the 2022 Plan currently provides as follows:
“(a) Subject to adjustment under Section 12 hereof, there is hereby reserved for issuance under the Plan 4,000,000 shares of Common Stock of the Company, which may be authorized but unissued or treasury shares.”
The Board of Directors has authorized and approved an increase in the number of shares of common stock reserved for issuance with respect to awards granted under the 2022 Plan from 4,000,000 shares of common stock to 10,000,000 shares of common stock. In the event that Proposal No. 3 is approved by our stockholders at the Annual Meeting, Section 5(a) of the 2022 Plan will, thereafter, read in its entirety as follows:
“(a) Subject to adjustment under Section 12 hereof, there is hereby reserved for issuance under the Plan 10,000,000 shares of Common Stock of the Company, which may be authorized but unissued or treasury shares.”
Section 5(b) of the 2022 Plan currently provides as follows:
“(b) If there is a lapse, expiration, termination or cancellation of any Stock Option granted under this Plan prior to the issuance of shares in connection with such option, or if shares are issued under the Plan in connection with an Award hereunder and thereafter such shares are reacquired by the Company, those shares may again be used for new Awards under the Plan. In addition, any shares exchanged or surrendered by a Participant as full or partial payment of the exercise price under any Stock Option exercised under this Plan, any shares retained by the Company pursuant to a Participant’s tax withholding election, and any shares covered by an Award which is settled in cash, shall be added back to the shares available for Awards under the Plan. The Board shall determine the appropriate methodology for calculating the number of Shares available for issuance pursuant to the Plan. Notwithstanding the above, the maximum number of shares that may be issued pursuant to the exercise of Incentive Stock Options during the term of the Plan shall not exceed 4,000,000 shares.”
The Board of Directors has authorized and approved an increase in the maximum number of shares of common stock that may be issued pursuant to the exercise of ISOs from 4,000,000 shares of common stock to 10,000,000 shares of common. In the event that Proposal No. 3 is approved by our stockholders at the Annual Meeting, Section 5(b) of the 2022 Plan will, thereafter, read in its entirety as follows:
“(b) If there is a lapse, expiration, termination or cancellation of any Stock Option granted under this Plan prior to the issuance of shares in connection with such option, or if shares are issued under the Plan in connection with an Award hereunder and thereafter such shares are reacquired by the Company, those shares may again be used for new Awards under the Plan. In addition, any shares exchanged or surrendered by a Participant as full or partial payment of the exercise price under any Stock Option exercised under this Plan, any shares retained by the Company pursuant to a Participant’s tax withholding election, and any shares covered by an Award which is settled in cash, shall be added back to the shares available for Awards under the Plan. The Board shall determine the appropriate methodology for calculating the number of Shares available for issuance pursuant to the Plan. Notwithstanding the above, the maximum number of shares that may be issued pursuant to the exercise of Incentive Stock Options during the term of the Plan shall not exceed 10,000,000 shares.”
Vote Required
The affirmative vote of the majority of shares of Common Stock present in person or represented by proxy at the Annual Meeting and entitled to vote is required to approve the 2022 Plan Amendments Proposal. Abstentions will have no effect on the outcome of the vote.
Recommendation of the Board
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “FOR” THE 2022 PLAN AMENDMENTS PROPOSAL.
FACT-MASTER
5 months ago
Thanks for pointing this out
https://app.quotemedia.com/data/downloadFiling?webmasterId=104682&ref=318429429&type=HTML
(Although TPET is currently NYSE compliant, i concur that a RS is likely - see bottom -" Board Recommendation" )
"PROPOSAL NO. 2 — THE REVERSE STOCK SPLIT PROPOSAL
Introduction
Our Board has adopted resolutions (1) declaring that submitting an amendment to the Company’s Certificate of Incorporation to effect a reverse stock split, as described below, was advisable, and (2) directing that a proposal to approve the Reverse Stock Split be submitted to the holders of our Common Stock for their approval.
If approved by our stockholders, the Reverse Stock Split proposal would permit (but not require) our Board to effect a reverse stock split of our Common Stock, if deemed necessary by our Board of Directors, by a ratio of not less than one-for-five (1:5) and not more than one-for-twenty (1:20), with the exact ratio to be set at a whole number within this range as determined by our Board of Directors in its sole discretion. We believe that enabling our Board of Directors to set the ratio within this stated range will provide us with the flexibility to implement the Reverse Stock Split in a manner designed to maximize the anticipated benefits for our stockholders.
The intention of the Board in obtaining approval for the authority to effect a Reverse Stock Split would be to increase the stock price of our Common Stock sufficiently in order to better assure continued compliance with the NYSE American LLC (the “NYSE American”) requirements. Our Common Stock is currently listed on the NYSE American. As further described in the section below entitled “Reasons for the Reverse Stock Split; the NYSE American Requirements for Continued Listing,” on February 26, 2024, we received a notice from the NYSE American (the “Stock Price Noncompliance Notice”) indicating that we were not in compliance with the continued listing requirements set forth in Section 1003(f)(v) of the NYSE American Company Guide because our Common Stock had been selling for a substantial period of time at a lower price than $0.20 per share. On May 1, 2024, we received a second notice from the NYSE American (the “Stock Price Compliance Notice”) informing us that we had resolved the compliance issue with respect to the low price of our Common Stock, because the 30-day average price of our Common Stock was $0.25 as of April 30, 2024. The Stock Price Compliance Notice also provides that the NYSE American can still commence delisting proceedings and immediately suspend trading of our Common Stock if it trades at levels viewed to be abnormally low, which is generally viewed as a price at or below $0.10.
In addition, the effect of the Reverse Stock Split, without a corresponding reduction of the authorized shares of Common Stock, will allow the Board of Directors to issue more shares of Common Stock than the amount that it would have been able to issue prior to the Reverse Stock Split being effectuated. The Board, in its sole discretion, can elect to abandon the Reverse Stock Split in its entirety at any time.
One principal effect of the Reverse Stock Split would be to decrease the number of outstanding shares of our Common Stock. Except for de minimis adjustments that may result from the treatment of fractional shares as described below, the Reverse Stock Split will not have any dilutive effect on our stockholders since each stockholder would hold the same percentage of our Common Stock (in hand or on an as converted basis) and/or the same relative voting rights outstanding immediately following the Reverse Stock Split as such stockholder held immediately prior to the Reverse Stock Split. The relative voting and other rights that accompany the shares would not otherwise be affected by the Reverse Stock Split. The authorized number of shares of Common Stock will not be adjusted as a result of the Reverse Stock Split.
The table below sets forth the number of shares of our Common Stock outstanding before and approximate number of shares outstanding after the Reverse Split based on shares of our Common Stock outstanding as of the Record Date.
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Prior to the Reverse Split Assuming a One-for- Five Reverse Split Assuming a One-for- Ten Reverse Split Assuming a One-for- Twenty Reverse Split
Aggregate Number of Shares of Common Stock Outstanding 50,328,328 10,065,666 5,032,833 2,516,417
The Reverse Split is not part of a broader plan to take us private.
Reasons for the Reverse Stock Split; the NYSE American Requirements for Continued Listing
On February 26, 2024, we received the Stock Price Noncompliance Notice indicating that we were not in compliance with the continued listing requirements set forth in Section 1003(f)(v) of the NYSE American Company Guide because our Common Stock has been selling for a substantial period of time at a lower price per share than $0.20. The Stock Price Noncompliance Notice informed us that we were being provided 180 days, or until August 26, 2024, to regain compliance with the continued listing requirements which could be satisfied by having our Common Stock trade equal to or above US $0.20 per share within such timeframe. On May 1, 2024, we received the Stock Price Compliance Notice informing us that we had resolved the continued listing deficiency with respect to the low price of our Common Stock and regained compliance with the continued listing requirements, because the 30-day average price of our Common Stock was $0.25 as of April 30, 2024. The Stock Price Compliance Notice also provides that the NYSE American can still commence delisting proceedings and immediately suspend trading of our Common Stock if it trades at levels viewed to be abnormally low, which is generally viewed as a price at or below $0.10. Therefore, we are seeking stockholder approval for the Reverse Stock Split so that our Board has the ability, in its determination to effect the Reverse Stock Split, if it is determined to be necessary to better assure that the stock price continues to be in compliance with the continued listing requirements. If, in the future, the price of our Common Stock falls out of compliance, again, with the continued listing requirements of the NYSE American, this could result in a de-listing of our Common Stock from trading on the NYSE American.
On April 16 2024, the Company entered into a securities purchase agreement (the “April 2024 SPA”) with an institutional investor (the “Initial Investor”), pursuant to which the Company received aggregate gross proceeds in the amount of $360,000. On April 24, 2024, the Company entered into an Amended and Restated Securities Purchase Agreement (the “A&R April 2024 SPA”), pursuant to which an additional institutional investor also provided financing to the Company, on the same terms as provided by the Initial Investor, for gross proceeds in the amount of $360,000. Under the A&R April 2024 SPA, the Company is required, to the extent it is unable to maintain the listing of its Common Stock on the NYSE American, other than by consummating a Reverse Stock Split of its shares of Common Stock, to use its commercially reasonable efforts to consummate such a Reverse Stock Split. Although effecting a Reverse Stock Split is not now required to maintain the listing of the Common Stock on the NYSE American, the Company may still consider doing so for the other reasons set forth herein.
The Board’s primary objective in proposing a potential Reverse Stock Split is to raise the per share trading price of our Common Stock. Our Common Stock currently trades on NYSE American under the symbol “TPET” In order to maintain our listing on NYSE American we may be required to effect the Reverse Stock Split so that our listed shares trade equal to or above US $0.20 per share for an extended period of time. The closing trading price of our Common Stock on June 18, 2024 was $0.2994.
The Reverse Stock Split would increase the availability of such shares, which could then be issued upon conversion or exercise of outstanding convertible securities, for grants under our currently effective stock option plan and in connection with an acquisition of another business or a merger. The Company currently has no plans to acquire another business or enter into a merger transaction.
Our Board concluded that the liquidity and marketability of our Common Stock will be adversely affected if it is not listed on a national securities exchange as investors can find it more difficult to dispose of, or to obtain accurate quotations as to the market value of, our Common Stock. Our Board believes that current and prospective investors will view an investment in our Common Stock more favorably if our common stock remains listed on the NYSE American.
Our Board also believes that the Reverse Stock Split and any resulting increase in the per share price of our Common Stock will enhance the acceptability and marketability of our Common Stock to the financial community and investing public. Many institutional investors have policies prohibiting them from holding lower-priced stocks in their portfolios, which reduces the number of potential buyers of our Common Stock, although we have not been told by them that is the reason for not investing in our Common Stock. Additionally, analysts at many brokerage firms are reluctant to recommend lower-priced stocks to their clients or monitor the activity of lower-priced stocks. Brokerage houses frequently have internal practices and policies that discourage individual brokers from dealing in lower-priced stocks. Further, because brokers’ commissions on lower-priced stocks generally represent a higher percentage of the stock price than commissions on higher priced stocks, investors in lower-priced stocks pay transaction costs which are a higher percentage of their total share value, which may limit the willingness of individual investors and institutions to purchase our Common Stock.
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We cannot assure you that the Reverse Stock Split will have any of the desired effects described above. More specifically, we cannot assure you that after the Reverse Stock Split, the market price of our Common Stock will increase proportionately to reflect the ratio for the Reverse Stock Split, that the market price of our Common Stock will not decrease to its pre-split level, that our market capitalization will be equal to the market capitalization before the Reverse Stock Split, or that we will be able to maintain our listing on the NYSE American.
Potential Disadvantages of the Reverse Stock Split
As noted above, the principal purpose of the Reverse Stock Split would be to help increase the per share market price of our Common Stock by up to factor of twenty. We cannot assure you, however, that the Reverse Stock Split will accomplish this objective for any meaningful period of time. While we expect that the reduction in the number of outstanding shares of Common Stock will increase the market price of our Common Stock, we cannot assure you that the Reverse Stock Split will increase the market price of our Common Stock proportionately based on the Reverse Stock Split ratio, or result in any permanent increase in the market price of our Common Stock, which is dependent upon many factors, including our business and financial performance, general market conditions and prospects for future success. If the per share market price does not increase proportionately as a result of the Reverse Stock Split, then the value of our Company as measured by our market capitalization will be reduced, perhaps significantly.
Because the number of authorized shares of our Common Stock will not be reduced proportionately with the ratio of the Reverse Stock Split, it may increase the Board of Directors’ ability to issue authorized and unissued shares without further stockholder action, the issuance of which would be dilutive to our existing stockholders and may cause a decline in the trading price of our Common Stock. With respect to authorized but unissued and unreserved shares, the Company could also use such shares to oppose a hostile takeover attempt or delay or prevent changes in control or changes in or removal of management.
The number of shares held by each individual holder of Common Stock would be reduced if the Reverse Stock Split is implemented. This will increase the number of stockholders who hold less than a “round lot,” or 100 shares. Typically, the transaction costs to stockholders selling “odd lots” are higher on a per share basis. Consequently, the Reverse Stock Split could increase the transaction costs to existing holders of Common Stock in the event they wish to sell all or a portion of their position.
Although our Board of Directors believes that the decrease in the number of shares of our Common Stock outstanding as a consequence of the Reverse Stock Split and the anticipated increase in the market price of our Common Stock could encourage interest in our Common Stock and possibly promote greater liquidity for our stockholders, such liquidity could also be adversely affected by the reduced number of shares outstanding after the Reverse Stock Split.
Criteria the Board of Directors May Use to Determine Whether to Implement the Reverse Stock Split
When determining whether to implement the Reverse Stock Split, and which Reverse Stock Split ratio to implement, if any, following the receipt of stockholder approval, the Board of Directors may consider various factors, including:
? The continued listing requirements of the NYSE American;
? the historical trading price and trading volume of our Common Stock;
? the then-prevailing trading price and trading volume of our Common Stock and the expected impact of the Reverse Stock Split on the trading market for our Common Stock in the short- and long-term;
? the listing requirements, other rules and guidance from one or more potential national securities exchanges;
? the number of shares of our Common Stock outstanding;
? the anticipated impact of a particular ratio on the Company’s ability to reduce administrative and transactional costs; and
? prevailing general market, legal and economic conditions.
9
Effecting the Reverse Stock Split
Upon receipt of stockholder approval for the Reverse Split Proposal, if our Board of Directors concludes that it is in the best interests of our Company and our stockholders to effect the Reverse Stock Split, the Certificate of Amendment will be filed with the Secretary of State of Delaware. The actual timing of the filing of the Certificate of Amendment with the Secretary of State of Delaware to effect the Reverse Stock Split will be determined by our Board of Directors. In addition, if for any reason our Board of Directors deems it advisable to do so, the Reverse Stock Split may be abandoned at any time prior to the filing of the Certificate of Amendment, without further action by our stockholders. In addition, our Board of Directors may deem it advisable to effect the Reverse Stock Split even if the price of our Common Stock is trading above $0.20 for a sustained period the time. The Reverse Stock Split will be effective as of the date of filing with the Secretary of State of the State of Delaware (the “Effective Time”).
Upon the filing of the Certificate of Amendment, without further action on our part or our stockholders, the outstanding shares of Common Stock held by stockholders of record as of the Effective Time would be converted into a lesser number of shares of Common Stock based on a Reverse Stock Split ratio as determined by the Board of Directors. For example, if you presently hold 3,000 shares of our Common Stock, you would hold 300 shares of our Common Stock following the Reverse Stock Split if the ratio is one-for-ten (1:10) or you would hold 150 shares of our Common Stock if the ratio is one-for-twenty (1:20).
Effect on Outstanding Shares, Options and Certain Other Securities
If the Reverse Stock Split is implemented, the percentage of our Common Stock owned by each stockholder will remain unchanged except for any de minimis change resulting from rounding up to the nearest number of whole shares of Common Stock so that we are not obligated to issue cash in lieu of any fractional shares that such common stockholder would have received as a result of the Reverse Stock Split. The number of shares of our Common Stock that may be purchased upon exercise of outstanding options or exercise or conversion of other securities convertible into, or exercisable or exchangeable for, shares of our Common Stock, and the exercise or conversion prices for these securities, will also be ratably adjusted in accordance with their terms as of the Effective Time.
Effect on Registration
Our Common Stock is currently registered under the Securities Act of 1933, as amended (the “Securities Act”), and we are subject to the periodic reporting and other requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The proposed Reverse Stock Split will not affect the registration of our Common Stock.
Fractional Shares
Our Board of Directors does not currently intend to issue fractional shares of Common Stock in connection with the Reverse Stock Split. Therefore, we do not expect to issue fractional shares. In lieu of any fractional shares, we will issue to stockholders of record who would otherwise hold a fractional share because the number of shares of Common Stock they hold of record before the Reverse Stock Split is not evenly divisible by the Reverse Stock Split ratio that number of shares of Common Stock as rounded up to the nearest whole share. For example, if a stockholder holds 150.25 shares of Common Stock following the Reverse Stock Split, that stockholder will receive 151 shares of Common Stock. No stockholders will receive cash in lieu of fractional shares.
As of the Record Date, we had holders of record of our Common Stock (although we have significantly more beneficial holders). We do not expect the Reverse Stock Split and the rounding up of fractional shares to whole shares to result in a reduction in the number of record holders. We presently do not intend to seek any change in our status as a reporting company for federal securities law purposes, either before or after the Reverse Stock Split.
Shares Held in Book-Entry and Through a Broker, Bank or Other Holder of Record
The combination of, and reduction in, the number of our outstanding shares of Common Stock as a result of the Reverse Stock Split occurs automatically at the Effective Time without any additional action on the part of our stockholders.
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Upon the Reverse Stock Split, we intend to treat stockholders holding shares of our Common Stock in “street name” (that is, through a broker, bank or other holder of record) in the same manner as registered stockholders whose shares of our Common Stock are registered in their names. Brokers, banks or other holders of record will be instructed to effect the Reverse Stock Split for their beneficial holders holding shares of our Common Stock in “street name”; however, these brokers, banks or other holders of record may apply their own specific procedures for processing the Reverse Stock Split. If you hold your shares of our Common Stock with a broker, bank or other holder of record, and you have any questions in this regard, we encourage you to contact your holder of record.
If you hold registered shares of our Common Stock in a book-entry form, you do not need to take any action to receive your post-Reverse Stock Split shares of our Common Stock in registered book-entry form. If you are entitled to post-Reverse Stock Split shares of our Common Stock, a transaction statement will automatically be sent to your address of record as soon as practicable after the Effective Time indicating the number of shares of our Common Stock you hold.
Anti-Takeover and Dilutive Effects
The authorized Common Stock will not be diluted as a result of the Reverse Stock Split. The Common Stock that is authorized but unissued provides the Board of Directors with flexibility to effect among other transactions, public or private financings, acquisitions, stock dividends, stock splits and the granting of equity incentive awards. However, these authorized but unissued shares may also be used by our Board of Directors, consistent with and subject to its fiduciary duties, to deter future attempts to gain control of us or make such actions more expensive and less desirable. The Certificate of Amendment would continue to give our Board authority to issue additional shares from time to time without delay or further action by the stockholders except as may be required by applicable law or regulations. The Certificate of Amendment is not being recommended in response to any specific effort of which we are aware to obtain control of us, nor does our Board of Directors have any present intent to use the authorized but unissued Common Stock to impede a takeover attempt. There are no plans or proposals to adopt other provisions or enter into any arrangements that have material anti-takeover effects.
Accounting Consequences
As of the Effective Time, the stated capital attributable to Common Stock on our balance sheet will be reduced proportionately based on the Reverse Stock Split ratio (including a retroactive adjustment of prior periods), and the additional paid-in capital account will be credited with the amount by which the stated capital is reduced. Reported per share net income or loss will be higher because there will be fewer shares of our Common Stock outstanding.
Text of Proposed Certificate of Amendment; Effectiveness
The text of the proposed Certificate of Amendment is set forth in substantially final form in Annex A to this Proxy Statement. If and when effected by our Board of Directors, the Certificate of Amendment will become effective upon its filing with the Secretary of State of Delaware.
Vote Required
The affirmative vote of the majority of shares of Common Stock present in person or represented by proxy at the Annual Meeting and entitled to vote is required to approve the Reverse Stock Split Proposal. Abstentions will have no effect on the outcome of the vote.
Recommendation of the Board
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “FOR” THE REVERSE STOCK SPLIT PROPOSAL.
FACT-MASTER
5 months ago
Nothing directly, at the moment.
However, if you have been following the TPET story, you would know that TPET is also involved in the Uintah Basin, Utah.
https://finance.yahoo.com/news/company-successfully-completes-first-two-120000242.html
"Trio Petroleum Corp is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California, and Uintah County, Utah. In Monterey County, Trio owns 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields in the South Salinas Project, and 21.92% working interest in 800 acres in the McCool Ranch Field. In Uintah County, Trio owns 2.25% working interest in 960 acres and options to acquire up to 20% working interest in the 960 acres, in an adjacent 1,920 acres, and in the greater 30,000 acres of the Asphalt Ridge Project."
So indirectly, the takeover of XCL Resources, by SM Energy (80%) and Northern Oil and Gas (20%) for a combined 2,514,000,000 for 37,200 net acres in the Uinta Basin Utah,.. imo, creates positive indications, outlooks, and may increase the potential valuations of other companies operating in subject Basin - enter the picture TPET / LaFayette.
Doing some simple mathematics, you will be able to determine the price/acre that was paid, apply that to TPET / LaFayette acreage allocation, would give you a baseline determination for an approximate value of TPET / LaFayette's Uintah Basin acreage asset, not counting the production TPET/LaFayette has or potentially will have.
Your Welcome.
FACT-MASTER
5 months ago
TPET: Press Release / June 20,2024
https://finance.yahoo.com/news/trio-petroleum-appoints-robin-ross-120000505.html
Trio Co-Founder Rejoins Company and Management Team
Bakersfield, CA, June 20, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp. (NYSE American: “TPET”, “Trio” or the “Company”), a California-based oil and gas company, today announced Trio co-founder and former board member Robin Ross has returned to the Company’s board of directors as Chairman as of June 17, 2024. As part of the transition, Trio’s Current Chairman and co-founder Stan Eschner has become Vice Chairman of the Board and former CEO Frank Ingriselli, who has been serving as Vice Chairman, has resigned as a director, also effective as of June 17th.
“We are pleased to welcome Robin back to the board of Trio and have him assume this important leadership role with the Company. His breadth of experience in finance, merchant banking and strategic development of emerging companies will add another tremendous resource for Trio and all of its stakeholders,” commented Michael Peterson, CEO of Trio. “Robin is a prolific entrepreneur having founded multiple successful private and public ventures in a wide range of industries, including resources, oil and gas and merchandising, all of which will benefit Trio and its shareholders as we continue to increase production and diversify the Company,” added Mr. Peterson.
“I look forward to helping to build Trio into the success we envisioned when we founded the Company,“ commented Mr. Ross.
“On behalf of the board of directors and our management team, I wish to thank Frank Ingriselli for his many contributions to Trio. From helping to form the Company, leading our successful Initial Public Offering (IPO) and ultimately successfully launching Trio on the NYSE American. We wish Frank all of the continued success in his future endeavors,” said Mr. Peterson.
About Trio Petroleum Corp.
Trio Petroleum Corp. is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California, and Uintah County, Utah. In Monterey County, Trio owns an 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields in the South Salinas Project, and a 21.92% working interest in 800 acres in the McCool Ranch Field. In Uintah County, Trio owns a 2.25% working interest in 960 acres and options to acquire up to a 20% working interest in the 960 acres, in an adjacent 1,920 acres, and in the greater 30,000 acres of the Asphalt Ridge Project.
FACT-MASTER
5 months ago
...and more:
Additionally, Michael Peterson, the Chief Executive Officer and director of the Company, is also the Chief Executive Officer and director of Trio Petroleum Corp., and Frank C. Ingriselli, our Chairman, is also the Vice Chairman and director of Trio. Trio is party to a Leasehold Acquisition and Development Option Agreement. We and Heavy Sweet agreed that, to the extent Trio does not fully exercise the Trio Option, the Company had the right to acquire up to all 20% of the right set forth in the Trio Option (or such letter amount which Trio has not exercised), from Heavy Sweet, for $2,000,000 cash. To date, Trio has paid $225,000 for a 2.25% working interest in 960 acres of the Asphalt Ridge Option Leases.
Pursuant to the Farm-In Agreement (discussed above under “Business—Asphalt Ridge Option and Farm-In Agreement (Utah)”), the Company’s acquisition of rights in the Asphalt Ridge Leases and Asphalt Ridge Acreage are subject to the Trio Option, and as a condition to closing of the Farm-In Agreement, Heavy Sweet is required to obtain Trio’s agreement to assign the Trio Option to the Company at closing, with the Company assuming operatorship with respect to the Asphalt Ridge Leases and Asphalt Ridge Acreage, and with the Company assuming all rights, duties and responsibilities of Heavy Sweet under the Trio Option, and with the Asphalt Ridge Leases and Asphalt Ridge Acreage remaining subject to the Trio Option in accordance with its terms. Notwithstanding the foregoing, in the event Trio’s agreement to assign the Trio option to the Company is not obtained on or prior to closing, the Company, in its sole discretion, may waive that condition and close without receiving the assignment of the Trio Option, in which event (i) Heavy Sweet shall retain the 17.75% working interest that is subject to the Trio Option, (ii) the Farm-In Shares shall be proportionately reduced, and (iii) in the event the Trio Option expires without Trio exercising its full option to acquire all Asphalt Ridge Leases and Asphalt Ridge Acreage as contemplated under the Trio Option, the Company shall have the sole and exclusive right to farm-in and acquire such Asphalt Ridge Leases and Asphalt Ridge Acreage that is not acquired by Trio on same on the same terms and conditions, and at the same proportionate farm-in price, as set forth under the Farm-In Agreement. Trio’s assignment of the Trio Option to the Company may result in conflicts of interest between the Company, Trio and Mr. Peterson and Mr. Ingriselli, who are officers and directors (Mr. Peterson) and directors (Mr. Ingriselli) of Trio, as discussed above, including, but not limited to as a result of their fiduciary obligations to both Trio and the Company.
https://www.sec.gov/Archives/edgar/data/1936031/000165495424005045/lafa_s1.htm
FACT-MASTER
5 months ago
TPET: Interesting information from LaFayette's S-1
Overview
We are an oil and gas exploration and production company headquartered in Lehi, Utah. The Company was incorporated on February 7, 2022 under the laws of Delaware, with the goal of acquiring, funding and developing, primarily crude oil exploration and development. The Company plans to initially focus its attention on certain oil and gas assets located in Eastern Utah which it hopes to acquire pursuant to the Farm-In Agreement (defined and discussed below), and use anticipated cash flow from those operations to fund development of the Imperial Parish Fields (defined and discussed below). As of the date of this prospectus, we have entered into a farm-in agreement providing us the right to acquire an additional approximately net 2,880 acres in the Uinta Basin, Utah and hold options to purchase leases covering approximately 1,487 gross mineral acres in Imperial Parish, Louisiana. We have no revenue-generating operations as of the date of this prospectus, but we do have the cash resources on hand, and anticipate additional capital to be raised through, the expected funding of the second $2.5 million tranche of our Series A Convertible Preferred offering (which as discussed in greater detail below, is required to be funded after we produce at least 100 barrels of oil), to drill and complete our first three wells which if successful are expected to allow us to begin to generate revenues. The first well is scheduled to be drilled and completed at the end of April 2024, and the second and third wells are planned for May and June 2024. Additional funding, including funds from this offering, if successful, will provide additional growth capital.
Asphalt Ridge Option and Farm-In Agreement (Utah)
On November 13, 2023, the Company entered into a Leasehold Acquisition and Development Option Agreement (the “Asphalt Ridge Option Agreement”) with Heavy Sweet Oil, LLC (“Heavy Sweet”). Pursuant to the Asphalt Ridge Option Agreement, we purchased an option to acquire up to a 30% working interest in certain leases in the Uintah Basin, a long-developed oil and gas area of eastern Utah, southwest of Vernal, Utah, totaling 960 acres. Heavy Sweet holds the right to such leases below 500 ft depth from surface (the “Asphalt Ridge Option Leases”) and the option to participate in Heavy Sweet’s initial 960 acre drilling and production program on such Asphalt Ridge Option Leases (the “Asphalt Ridge Option”).
The Asphalt Ridge Option had a term of nine months, through June 28, 2024. The Asphalt Ridge Option Agreement provided that additional development capital was expected to be secured by Heavy Sweet, and made available for the Company’s participation, by way of a reserve base lending facility (RBL), provided that if such RBL could not be obtained or did not cover all subsequent capital costs, Heavy Sweet agreed to fund a maximum of $5,000,000 of the first funding required for the development program, with the parties splitting any costs thereafter according to their ownership interests. The initial target was three wells, with an estimated cost of $5,000,000 for roads, pads, drilling, and above ground steam and storage facilities, and thereafter the parties anticipated working together to fund further well development based on their proportionate ownership thereof.
As consideration for agreeing to the Asphalt Ridge Option, we issued Heavy Sweet 2,688,000 shares of the Company’s restricted common stock, equal to approximately 19.9% of the Company’s then-issued and outstanding shares of common stock (the “Option Shares”). The Option Shares were subject to vesting upon certain terms set forth in a Restricted Stock Agreement, and have fully-vested to date as a result of our entry into the Farm-In Agreement with Heavy Sweet as discussed below.
On November 10, 2023, as amended December 28, 2023, Heavy Sweet entered into a Leasehold Acquisition and Development Option Agreement with Trio Petroleum Corp. (“Trio”), of which Michael Peterson, the Chief Executive Officer and director of the Company, is also the Chief Executive Officer and director, and Frank C. Ingriselli, our Chairman, is also the Vice Chairman and director (the “Trio Option”). The Trio Option has similar terms as the Asphalt Ridge Option Agreement, except that it allows Trio to obtain a 20% interest in the Asphalt Ridge Option Leases, and did not require Trio to pay any equity compensation.
We and Heavy Sweet agreed that, to the extent Trio did not fully exercise the Trio Option, the Company had the right to acquire up to all 20% of the right set forth in the Trio Option from Heavy Sweet for $2,000,000 cash (or such other amount at the rate of $100,000 for each 1% which Trio had not exercised). To date, Trio has paid $225,000 for a 2.25% working interest in 960 acres of the Asphalt Ridge Option Leases.
The exercise of the Trio Option held by Trio is contingent upon certain requirements and deliverables.
8
Table of Contents
A Prospective Resource Assessment covering the first 240 acres of the Asphalt Ridge Leases (defined below) that are planned to be developed was issued by Netherland Sewel to Heavy Sweet on November 17, 2023 (as of October 31, 2023), which estimated total oil resources of 58,390,200 barrels (bbls) of oil.
On March 7, 2024 the Company entered into a Farm-In Agreement (the “Farm-In Agreement”) with Heavy Sweet which superseded and terminated in full the Asphalt Ridge Option. According to the Farm-In Agreement, upon certain terms and conditions set forth therein, (i) the Company will farm-into and purchase from Heavy Sweet, and Heavy Sweet will allow the Company to farm-in and sell to the Company, (x) an undivided Ninety-Seven and 3/4th Percent (97.75% of 8/8ths) interest (100% of 8/8ths reduced by the Trio Option exercised amount discussed above) in and to approximately 960 gross and net acres under the Asphalt Ridge Leases (the “Asphalt Ridge Leases”), and (y) an undivided One Hundred Percent (100.00% of 8/8ths) interest in and to approximately 1,920 gross and net acres, in the adjoining acreage located in the western half of Section 23 and Sections 22, 26, and 27 all in township range and section map T4S, R20, 6th PM, Uintah County, Utah (the “Asphalt Ridge Acreage”); and (ii) subject to the Trio Option, we may explore and develop the Subject Acreage and the Asphalt Ridge Leases.
The farm-in price payable pursuant to the terms of the Farm-In Agreement is up to 3,400,000 shares of restricted common stock of the Company, with such number of shares due at closing equal to (x) 3,400,000 shares, multiplied by (y) the total number of acres conveyed at closing, divided by (z) 2,880 (the “Farm-In Shares”).
The closing of the transactions contemplated by the Farm-In Agreement is to occur upon completion of the Company’s due diligence on such Asphalt Ridge Leases and Asphalt Ridge Acreage, but no later than August 4, 2024.
The Farm-In Agreement is subject to customary indemnification obligations, confidentiality obligations, representations, warranties and conditions to closing, including satisfactory due diligence by the Company, confirmation by the Company of title information relating to the Asphalt Ridge Leases and Asphalt Ridge Acreage, and determination of the number of net leasehold acres to be acquired.
The Farm-In Agreement also allows us to change our name to Heavy Sweet Oil Corp., or a similar name in our discretion, which name change Heavy Sweet is required to consent to. We have the right to either become the operator or to choose the contract operator for the development of the Asphalt Ridge Leases and Asphalt Ridge Acreage.
The Farm-In Agreement clarifies that the Asphalt Ridge Leases and Asphalt Ridge Acreage are subject to that certain Leasehold Acquisition and Development Agreement, dated November 10, 2023, as amended December 28, 2023, by and between Heavy Sweet and Trio Petroleum Corp (“Trio”) (the “Trio Option”), and as a condition to closing, Heavy Sweet is required to obtain Trio’s agreement to assign the Trio Option to the Company at closing, with the Company assuming operatorship with respect to the Asphalt Ridge Leases and Asphalt Ridge Acreage, and with the Company assuming all rights, duties and responsibilities of Heavy Sweet under the Trio Option, and with the Asphalt Ridge Leases and Asphalt Ridge Acreage remaining subject to the Trio Option in accordance with its terms. Notwithstanding the foregoing, in the event Trio’s agreement to assign the Trio Option to the Company is not obtained on or prior to closing, the Company, in its sole discretion, may waive that condition and close without receiving the assignment of the Trio Option, in which event (i) Heavy Sweet shall retain the 17.75% working interest that is subject to the Trio Option, (ii) the Farm-In Shares shall be proportionately reduced, and (iii) in the event the Trio Option expires without Trio exercising its full option to acquire all Asphalt Ridge Leases and Asphalt Ridge Acreage as contemplated under the Trio Option, the Company shall have the sole and exclusive right to farm-in and acquire such Asphalt Ridge Leases and Asphalt Ridge Acreage that is not acquired by Trio on the same terms and conditions, and at the same proportionate farm-in price, as set forth under the Farm-In Agreement.
Prior to closing, the parties are required to enter into a mutually agreed Operating Agreement to govern all operations in the contacted area.
As consideration for entering the Farm-In Agreement, the Company agreed to vest in full the previously issued but unvested 2,688,000 shares of restricted common stock that were to vest pursuant to the Asphalt Ridge Option Agreement, and the parties agreed that the Asphalt Ridge Option Agreement was terminated and superseded by the Farm-In Agreement.
Prior to closing, the Company has the right to begin development operations on the Asphalt Ridge Acreage, including, but not limited to, building roads, laying pipelines, building drilling pads, drilling wells, and otherwise improving the Asphalt Ridge Acreage. The Company may do so at its sole cost and expense, and the Company shall have the full right and ability to do so in its sole discretion. Any hydrocarbon resources produced from any such wells shall be owned by the Company. The Farm-In Agreement can be terminated prior to closing (a) with the mutual consent of the parties; (b) by us, if Heavy Sweet breaches any representation, warranty or covenant in the Farm-In Agreement, and such breach continues for more than three (3) business days after we provide notice thereof, or if title defects reduce by more than 10% the net acres to be acquired by the Company, or if the closing has not occurred by August 4, 2024; (c) by Heavy Sweet if the closing has not occurred by August 4, 2024. In the event the Farm-In Agreement is terminated for any reason and we have conducted any development activities on the Asphalt Ridge Acreage, Heavy Sweet is required to promptly reimburse us for such costs and expenses.
We currently expect to close the transactions contemplated by the Farm-In Agreement in June 2024, subject to the satisfaction of the conditions to closing set forth therein.
https://www.sec.gov/Archives/edgar/data/1936031/000165495424005045/lafa_s1.htm
FACT-MASTER
5 months ago
TPET: Company Successfully Completes First Two Exploratory Wells in Utah
Trio Petroleum Corp.
HSO 8-4 Well Discovers Over 100’ of Oil-Bearing Pay Zone in Rimrock Sandstone
HSO 2-4 Discovers Over 120’ of Oil-Bearing Pay Zone in Rimrock Sandstone & 69’ of Oil-Bearing Pay Zone in Asphalt Ridge Sandstone
Bakersfield, CA, June 11, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: “TPET”, “Trio” or the “Company”), a California-based oil and gas company, today provided updates on its recently completed drilling activities in Uintah County, Utah. The Company has successfully drilled its first two exploratory wells, the HSO 8-4 and HSO 2-4. The HSO 8-4 was drilled to a total depth of 1,020’, while the HSO 2-4 was drilled to a depth of 1,390’. The wells encountered substantial oil-bearing pay zones in the Rimrock and Asphalt Ridge Sandstones, over 100’ of oil-pay in the Rimrock Sandstone in the HSO 8-4 well and over 190’ combined in the Rimrock and Asphhalt Ridge Sandstones in the HSO 2-4 well.
A downhole-heater was installed in the HSO 2-4 well the heating process began on June 3, 2024, with production expected to begin later this week. The HSO 8-4 is currently waiting for a second downhole-heater to be delivered and is expected to be installed on or before June 15, 2024.
“This is a very positive next step for our Company,” commented Michael Peterson, CEO of Trio. “The geological data prior to drilling were very positive, and the drilling results are confirming our favorable view of this project. Our expectation for these two wells, and this field, were extremely high based on the data we previously studied. The new cores of the tar sand show very high oil saturation and oil drips from the core when heat is applied, and the bitumen and sand separate within minutes when the core is placed in boiling water. This is very encouraging as we will be heating the wells to temperatures much higher than the boiling point of water with downhole-heaters and/or by injecting steam. We are additionally encouraged to see that the well logs, the core samples which show very high oil saturation, and all other empirical evidence from drilling these two exploratory wells substantiated our hopes and expectations.”
“Based on this new data, we believe the economic impact of our ownership interest in the Asphalt Ridge project has the potential to quickly exceed that of our substantial assets in California. The data support the expectation that the wells will be highly economic with stable long-lived production value, if our production and resource estimates prove to be accurate. At this point, we are working to complete the remaining steps required to bring these wells into production and evaluate the next steps in our development plan at Asphalt Ridge,” concluded Mr. Peterson.
The production profile of a typical project well has been extensively modeled, and it currently projects an estimated 40% oil recovery and an estimated ultimate recovery (“EUR”) of 300,000 barrels of oil per well with a production rate of approximately 40 barrels of oil per day per well. With an expected total drilling and completion cost of less than $500,000 per well, our initial drilling results appear to validate the well economics previously projected. With this data, the Company intends to exercise its rights to acquire the remaining 17.75% working interest in the initial 960 acres.
Under the current agreement, Trio’s operating partner, Lafayette Energy Corp, carries all drilling costs through the first $10 million of capital expenditures. Lafayette Energy Corp, through its operator, Valkor Oil and Gas, is expected to drill the third well as early as late June and intends to drill five additional wells during Q3 2024, subject to rig and services availability.
During the drilling process, the Company was required to gather extensive data for submission to the Utah Division of Oil, Gas and Mining (“OGM”). As part of the drilling process, the Company also cored oil-bearing sandstones, assayed, and subsequently conducted core analysis. All of these data are being submitted to the OGM as part of the overall unitization of the project. Once that process is complete, the Company will be permitted to scale its drilling program, with the ability to drill wells on as little as 1.5 acre spacing. On the initial 960 acres, the current development plan is to drill approximately 476 wells. There is an opportunity to expand Trio’s participation in the project by an additional 1,920 acres thereafter.
About Trio Petroleum Corp
Trio Petroleum Corp is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California, and Uintah County, Utah. In Monterey County, Trio owns 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields in the South Salinas Project, and 21.92% working interest in 800 acres in the McCool Ranch Field. In Uintah County, Trio owns 2.25% working interest in 960 acres and options to acquire up to 20% working interest in the 960 acres, in an adjacent 1,920 acres, and in the greater 30,000 acres of the Asphalt Ridge Project.
https://finance.yahoo.com/news/company-successfully-completes-first-two-120000242.html
FACT-MASTER
7 months ago
TPET: https://finance.yahoo.com/news/company-commences-oil-sales-california-110000683.html
Trio Petroleum Corp.
Company to Ship First Commercially Marketed Oil Sales
Since Resumption of Operations in February
Rig Scheduled for First Exploratory Well on Utah Asset
Bakersfield, CA, April 24, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: “TPET”, “Trio” or the “Company”), a California-based oil and gas company, today provided updates on its petroleum assets in Monterey County, California, and Uintah County, Utah.
The Company this week will make its first sale and shipment of oil produced at the McCool Ranch Field in Monterey County, California. The Company will ship approximately 2,100 barrels of oil, which were produced primarily from the HH-1 well that was brought back online in late February of 2024. Net of 16.67% royalties and oil trucking costs, the 80% net revenues to TPET from this sale are expected to be approximately $105,000.
The Company is also announcing the commencement of drilling activities on the Asphalt Ridge project in Uintah County, UT. A rig is scheduled to be on site this Sunday, and to drill and complete the Company’s first well on this asset in the next two weeks. Drilling results are expected to be readily available shortly after the well is drilled to a total estimated depth of 1,200 feet. The project targets a highly promising heavy-oil tar sand field that is expected to be densely developed at scale, with as low as 2.5 acre spacing for future wells. Through existing working interests and option agreements, the Company has the ability to take up to a 20% working interest in this project.
“These are positive next milestones for our Company,” commented Michael Peterson, CEO of Trio Petroleum Corp. “It is very encouraging to see these next steps happen in the transition from the exploration and de-risking of these promising oil and gas assets into potentially scalable cash-flowing resources. We look forward to providing further updates as we drill our first well on the Asphalt Ridge Asset and restart production on additional wells and selling of oil produced from both the McCool Ranch and Presidents Fields in the months ahead.”
Presidents Field
On March 26, 2024, the Company brought the HV-3A well in the Presidents Field back into production at a previously-reported oil production rate of 30 barrels of oil per day (BOPD). This well was drilled and completed in 2018 as an exploratory well, and in 2018-2019 it was briefly production-tested, during which peak production was 154 BOPD and average production was 33 BOPD.
This well is producing from 125 feet of perforations in the Yellow Zone, which is also commonly referred to as the Yellow Chert, and from an additional 125 feet of perforations in the overlying Upper Monterey Clay. The Monterey Formation is one of California’s major oil and gas producing zones.
Operations at HV-3A do not require steam due to the favorable viscosity of the mid-gravity oil. TPET believes that production at HV-3A can be significantly increased over current and previous levels, for example by:
adding up to 650 feet of additional perforations in the currently-producing oil zone
opening deeper behind-pipe oil zones, portions of which are already perforated
acidizing the well for borehole cleanup
other methods and operations under consideration
TPET will produce and monitor the HV-3A well as currently completed and when appropriate will take steps to increase production. There are potentially up to 50 development-well locations at Presidents on 40 acre well spacing, as indicated in the Company’s reserve report as filed with the SEC.
McCool Ranch Field
On February 22, 2024, the Company brought the HH-1 well at McCool Ranch back into production at a previously-reported oil production rate of 47 BOPD. The HH-1, 35X and 58X wells at McCool are now all producing with the HH-1, which started production late February, accounting for the majority of the approximate 2,100 barrels of oil that are being sold and shipped this week. As it did with the HH-1 well, The Company is currently taking steps to optimize the oil production from the 35X and 58X wells, including possibly employing cyclic steam and is also taking steps to bring the additional shut-in oil wells in this field back online.
Summary
In summary, the Company currently has four actively producing oil wells in California, three at McCool Ranch Field and one at Presidents Field and the Company is now selling and shipping oil from its California assets. The Company will be drilling its first well at the Asphalt Ridge Asset in Utah next week.
Additional information is provided on TPET’s website at the following link: https://trio-petroleum.com
About Trio Petroleum Corp
Trio Petroleum Corp is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California, and Uintah County, Utah. In Monterey County, Trio owns 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields in the South Salinas Project, and 21.92% working interest in 800 acres in the McCool Ranch Field. In Uintah County, Trio owns 2.25% working interest in 960 acres and options to acquire up to 20% working interest in the 960 acres, in an adjacent 1,920 acres, and in the greater 30,000 acres of the Asphalt Ridge Project.
tw0122
7 months ago
The Company this week will make its first sale and shipment of oil produced at the McCool Ranch Field in Monterey County, California. The Company will ship approximately 2,100 barrels of oil, which were produced primarily from the HH-1 well that was brought back online in late February of 2024. Net of 16.67% royalties and oil trucking costs, the 80% net revenues to TPET from this sale are expected to be approximately $105,000.
The Company is also announcing the commencement of drilling activities on the Asphalt Ridge project in Uintah County, UT. A rig is scheduled to be on site this Sunday, and to drill and complete the Company’s first well on this asset in the next two weeks. Drilling results are expected to be readily available shortly after the well is drilled to a total estimated depth of 1,200 feet. The project targets a highly promising heavy-oil tar sand field that is expected to be densely developed at scale, with as low as 2.5 acre spacing for future wells. Through existing working interests and option agreements, the Company has the ability to take up to a 20% working interest in this project.
“These are positive next milestones for our Company,” commented Michael Peterson, CEO of Trio Petroleum Corp. “It is very encouraging to see these next steps happen in the transition from the exploration and de-risking of these promising oil and gas assets into potentially scalable cash-flowing resources. We look forward to providing further updates as we drill our first well on the Asphalt Ridge Asset and restart production on additional wells and selling of oil produced from both the McCool Ranch and Presidents Fields in the months ahead.”
Presidents Field
On March 26, 2024, the Company brought the HV-3A well in the Presidents Field back into production at a previously-reported oil production rate of 30 barrels of oil per day (BOPD). This well was drilled and completed in 2018 as an exploratory well, and in 2018-2019 it was briefly production-tested, during which peak production was 154 BOPD and average production was 33 BOPD.
This well is producing from 125 feet of perforations in the Yellow Zone, which is also commonly referred to as the Yellow Chert, and from an additional 125 feet of perforations in the overlying Upper Monterey Clay. The Monterey Formation is one of California’s major oil and gas producing zones.
Operations at HV-3A do not require steam due to the favorable viscosity of the mid-gravity oil. TPET believes that production at HV-3A can be significantly increased over current and previous levels, for example by:
adding up to 650 feet of additional perforations in the currently-producing oil zone
opening deeper behind-pipe oil zones, portions of which are already perforated
acidizing the well for borehole cleanup
other methods and operations under consideration
TPET will produce and monitor the HV-3A well as currently completed and when appropriate will take steps to increase production. There are potentially up to 50 development-well locations at Presidents on 40 acre well spacing, as indicated in the Company’s reserve report as filed with the SEC.
McCool Ranch Field
On February 22, 2024, the Company brought the HH-1 well at McCool Ranch back into production at a previously-reported oil production rate of 47 BOPD. The HH-1, 35X and 58X wells at McCool are now all producing with the HH-1, which started production late February, accounting for the majority of the approximate 2,100 barrels of oil that are being sold and shipped this week. As it did with the HH-1 well, The Company is currently taking steps to optimize the oil production from the 35X and 58X wells, including possibly employing cyclic steam and is also taking steps to bring the additional shut-in oil wells in this field back online.
Summary
In summary, the Company currently has four actively producing oil wells in California, three at McCool Ranch Field and one at Presidents Field and the Company is now selling and shipping oil from its California assets. The Company will be drilling its first well at the Asphalt Ridge Asset in Utah next week.
Additional information is provided on TPET’s website at the following link: https://trio-petroleum.com
FACT-MASTER
7 months ago
TPET: Article of interest re: HV-3A deeper sections/below bridge plugs
(HV-3A - could make for an interesting update, should there be significant oil below bridge plugs)
https://www.energy-pedia.com/news/usa/trio-petroleum-commences-production-at-its-hv-1-confirmation-well-and-hv-3a-discovery-well-in-the-south-salinas-project-193755
04 Jan 2024
Photo - see caption
Trio Petroleum, a California-based oil and gas company, has provided updates on its HV-1 confirmation well ('HV-1') and its HV-3A discovery well ('HV-3A') in the Company’s South Salinas Project.
On December 27, the Company moved a rig onto location at its South Salinas Project to begin a workover of its HV-1 well, and subsequently the rig will move to its previously drilled HV-3A well. The Company estimates both wells should be producing on pump in mid- to late-January. A pumping unit and temporary facilities are already installed at the HV-1 well site and are now being reinstalled at the HV-3A well site.
The HV-1 was drilled as a two-mile step-out from the previously drilled HV-3A well. The HV-1 location was chosen based on interpretation of 3-D seismic data with the goal of better defining the magnitude of the Presidents Field located in the large 9,267 acre South Salinas Asset in which Trio owns an 85.75% working interest.
During the drilling and testing of the HV-1 well, the Company was excited by the oil shows and swab testing results of the Mid-Monterey-Clay, a zone previously not assigned any value in the Company’s reserve report, but which swab tested at rates of up to approximately 125 barrels of oil per day ('BOPD'). The swabbing operations were short-term and are not necessarily indicative of long-term production capacity and, therefore, the Company plans to further test the zone by putting it on pump and producing from this new zone. The Company believes production from this zone will further increase the reserves and PUDs of the Company’s current approximate $2 billion PV(10) reserve value. The workover of the HV-1 well will isolate existing perforations in the Mid-Monterey-Clay at 6,390-6,560 feet depth (170 feet of perforations) from perforations in shallower zones, allowing the Company to then production test the Mid-Monterey-Clay by putting it on pump.
Recently, Company management revisited the exploration permit for the HV-3A well and determined that production of the well could resume, and that a majority of the permitted eighteen-month test-period remains. This unexpected, but very favorable, outcome enables the Company to produce from two wells, the HV-1 and HV-3A, much earlier than expected. The Company is currently improving the road to the HV-3A well site, reinstalling temporary facilities, and putting the well back on pump. There are currently 250 feet of open perforations in the HV-3A well, of which 125 feet are in the Yellow Zone and 125 feet are above the Yellow Zone in the Upper-Monterey-Clay.
Earlier production testing on pump of these same HV-3A perforations recovered 18.5° to 22.4° API gravity oil at rates up to 154 BOPD, with the average over the final two weeks being 33 BOPD plus 86 barrels of water per day (“BWPD”). The future production of the HV-3A well could be improved as the perforations have not yet been acidized for borehole-cleanup and there are significant behind-pipe intervals in the well that have not yet been perforated. The Company intends to production test the existing open perforations on pump and to then take steps, as may be appropriate, to increase oil and gas production at the well, such as acidizing for borehole-cleanup, adding new perforations, and/or opening existing deeper perforations that previously produced oil and that are currently below bridge plugs.
Photo - see caption
Source: Trio Petroleum
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