US-based Trio Petroleum Corporation has finalised the acquisition of producing oil and gas assets located in the Lloydminster region of Saskatchewan, Canada. The assets, previously owned by Novacor Exploration Ltd, include two properties designated TWP47 and TWP48, both situated within one of North America’s leading heavy oil production zones. The transaction amounts to USD650,000, paid in cash in two tranches, and supplemented by the issuance of 526,536 common shares of Trio Petroleum.
Assets with immediate production
The acquired properties comprise seven currently producing wells, generating approximately 70 barrels of heavy crude oil per day from the McLaren/Sparky and Lloydminster formations. Production from these wells, operated by Novacor, is subject to Freehold Royalties ranging from 13.5% to 15% and a 2% Gross Overriding Royalty (GORR) on part of the site. The deal also includes two fully equipped sites and four additional wells ready for reactivation, each with the potential to yield up to 70 additional barrels per day.
Low-cost development potential
A reserve report prepared by Petrotech and Associates in August 2024 estimated total proved and probable reserves of 91,500 barrels for the currently producing wells. Novacor will remain the operator and foresees further development, including multi-lateral drilling opportunities targeting the Sparky GP formation. The assets’ lift cost, set at CAD10 per barrel, supports strong profitability even amid fluctuating oil prices.
Strategic expansion objective
This initial entry into Canada positions Trio Petroleum in a market dominated by major firms such as Cenovus Energy, Canadian Natural Resources and Baytex Energy. Robin Ross, Chief Executive Officer of Trio Petroleum, emphasised that the partnership with Novacor — a longstanding regional player — will be central to the company’s growth strategy. Trio plans to continue its expansion in the sector by leveraging controlled operating costs and the opportunity to acquire highly economic fields.
