Trio Petroleum Corp (NYSE: TPET) shares popped Thursday, as the California-based oil and gas company announced it has closed on certain petroleum and natural gas properties held by Novacor Exploration Ltd. More specifically, TPET closed on Novacor’s TWP48 Assets which is expected to be shortly followed by the closing on Novacor’s TWP47 assets.
These assets are in the prolific Lloydminster, Saskatchewan heavy oil region. This acquisition could strategically position the Company to expand its operations into one of North America’s most promising heavy oil basins, with upside potential for long term production and reserve growth.
Since the Novacor assets are in the heavy oil area, they offer economic development and low operational costs. Market accessibility combined with a favorable regulatory process makes this area very attractive for continued and future development within these lands.
The Novacor assets are located at the South-West quarter of Section 19, Township 47, Range 26W3M and the Northeast Section 3, Township 48, Range 24W3M, both in the Lloydminster, Saskatchewan area. There are currently seven producing wells located on the two properties. Current production is approximately 70 barrels per day with potential for four additional re-entry wells and two fully equipped locations to be reactivated each capable of an additional 70 barrels in total per day.
TPET shares jumped 12 cents, or 8.9%, to $1.47.