Trio Reports Notable Increases in Estimated Oil and Gas Reserves

Source: www.gulfoilandgas.com 9/3/2024, Location: North America

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.





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