Discounted Net Cash Flow (at 10%) increase of $67 Million to $475 Million
Based on Updated Operations
Bakersfield, CA, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: TPET) (“Trio” or the “Company”), a California-based oil and gas company, today provided an update on estimates of oil and gas reserves and future net cash flows at its South Salinas Project in Monterey County, California. The Company recently filed with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-1 (“S-1”) that included an updated reserve report, effective April 30, 2024 (“Reserve Report”), for the Company’s assets at the South Salinas Project. The Reserve Report was prepared by an independent third-party engineering firm, KLS Petroleum Consulting LLC.
The updated Reserve Report calculated approximately $475 million in estimated discounted (at 10%) net cash flow to the Company from its Probable (P2) Undeveloped Reserves of combined Phases 1-3 in the South Salinas Project, which is an increase of approximately $67 million from the Company’s earlier reserve report as filed with the SEC. The Reserve Report recognizes Probable (P2) Undeveloped Reserves and Possible (P3) Undeveloped Reserves for three project development phases, namely existing wells and permitted drilling locations, an additional 12-well drilling program, and the full development of the field over a four year period.
“I am pleased to report the results of our updated independent reserves report. This improved value is a strong validation of the operational investments we have successfully completed on these assets in 2024,” commented Robin Ross, CEO of Trio Petroleum. “We have been extremely focused on improving the current value of our California oil and gas assets, bringing wells online, carefully investing to optimize current production, increasing lease and working interest acquisitions with the goal of quickly generating sustained cash flows. Additionally we have been making notable progress in the permitting process as well as holding ongoing discussions with third-parties that may wish to join us in expanding our oil and gas development project to include a carbon capture and storage project. Increasing our reserves and increasing our discounted net cash flow by $67 million are healthy reflections of our continued effort to unlock the value of our assets.”
The Reserve Report indicates that the Probable (P2) Undeveloped Reserves of combined Phases 1-3, net to TPET, are approximately 40 million stock tank barrels of oil and 42 billion cubic feet of gas, or 47 million barrels of oil equivalent, that the associated Undiscounted Net Cash Flow to TPET is approximately $2.1 billion, and that the associated Discounted Net Cash Flow (discounted at 10%) to TPET is approximately $475 million.
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 a 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 an additional 17.75% working interest in the 960 acres, and also an option to acquire 20% working interest in an adjacent 1,920 acres, and a right of first refusal to participate in an additional approximate 30,000 acres of the Asphalt Ridge Project at terms offered to other third parties.
All statements in this press release of Trio Petroleum Corp (“Trio”) and its representatives and partners that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words "estimates," "believes," "hopes," "expects," "intends," “on-track”, "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Trio's control, that could cause actual results to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Trio’s reports filed with the Securities and Exchange Commission (SEC), including its 2024 Annual Report on Form 10-K filed on January 29, 2024. Copies are of such documents are available on the SEC's website, www.sec.gov. Trio undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
