Company Announces First Revenue
Trio Petroleum Corp (NYSE American: TPET) has announced its first revenue from the McCool Ranch Field in Monterey County, California, marking a significant milestone. The field is producing approximately 30 barrels of oil per day (BOPD). CEO Michael Peterson emphasized the importance of revenue generation for the company's growth strategy. Trio's operations include the McCool Ranch and Presidents fields in California, both now generating revenue. Additionally, two wells at the Asphalt Ridge Project in Utah are expected to begin meaningful production within 30 days, further boosting predictable cash flows. Trio plans to increase production with five producing wells at McCool Ranch and additional wells throughout the remainder of 2024 at the Asphalt Ridge Project.
- Trio Petroleum received its first revenue payment for April oil sales.
- The McCool Ranch Field is producing steadily at approximately 30 BOPD.
- Revenue generation has been achieved at both McCool Ranch and Presidents fields.
- The Asphalt Ridge Project in Utah is set to begin meaningful production within 30 days.
- Plans to expand production at McCool Ranch to five wells in the near term.
- None.
Trio Petroleum Corp's recent announcement of its first revenue from the McCool Ranch Field represents a significant milestone for the company, reflecting a transition from exploration to revenue generation. This pivot is essential as it signals the beginning of cash inflows which can be utilized for further development and operational expenses. Generating approximately 30 BOPD (barrels of oil per day) from the McCool Ranch Field may be modest in absolute terms but is important for a small-cap company like Trio. It provides a foundation for scaling their production and enhancing investor confidence.
Furthermore, the company’s leadership is focusing on increasing productivity across its current assets in both California and Utah. The plans to expand the number of producing wells at McCool Ranch and the initiation of the Asphalt Ridge Project are strategic initiatives aimed at diversifying revenue streams and enhancing long-term cash flow predictability.
From a financial standpoint, these developments could lead to improved valuation metrics and investor sentiment. The successful implementation of these plans could also positively impact the stock price, making Trio an attractive prospect for investors seeking exposure to the energy sector.
The initiation of revenue generation at the McCool Ranch Field is a noteworthy event for Trio Petroleum Corp. Within the oil and gas industry, achieving first revenue signals that the company is effectively moving from the development stage to production. This weaning-off dependence on external funding is particularly beneficial in a capital-intensive industry. The steady production rate of 30 barrels of oil per day aligns with early-stage production expectations, enabling the company to reinvest in scaling operations.
The mention of heat treatment technology at the Asphalt Ridge Project also highlights Trio's adoption of innovative methods to enhance oil recovery, which could yield higher production efficiencies and lower operational costs. If successful, this could set a precedent for similar projects within the industry and improve the company’s competitive edge.
It is important for investors to monitor the progress of these initiatives, as their successful execution could lead to sustainable growth and profitability. However, the company's dependence on multiple small-scale projects introduces a level of risk that should be considered within the broader industry context.
For retail investors, understanding the significance of Trio Petroleum Corp’s first revenue from its McCool Ranch Field involves recognizing the shift from speculative investment to a more stable, revenue-generating entity. This transition typically attracts a broader base of investors, including those who prioritize consistent cash flows over potential high-risk, high-reward scenarios.
By expanding its production capabilities and diversifying across multiple fields, Trio is positioning itself to mitigate risks associated with single-site dependencies. The company's strategy to ramp up production and add new wells not only aims to increase immediate cash flow but also to establish a more robust and resilient operational framework.
Retail investors should note that while the current production levels are modest, the company’s forward-looking statements regarding expansion and increased production suggest a growth trajectory. This implies potential for stock price appreciation contingent on successful execution of its project timelines and production targets.
Company Collects First Revenue Check for April Oil Sales at McCool Ranch Field
HH-1 at McCool Ranch Producing Steadily at Approximately 30 BOPD
Bakersfield, CA, July 01, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: “TPET”, “Trio” or the “Company”), a California-based oil and gas company, today announced that it received its first revenue payment in June for its proportionate share of revenue from April oil sales at McCool Ranch Field in Monterey County, California.
“We are now generating revenue and this is a positive milestone for our Company,” commented Michael Peterson, CEO of Trio. “My top priority when I assumed the role of CEO was to quickly begin generating revenue from our existing oil assets. We believe cash flow stability is a critical component of our initial growth strategy. We are now pleased that both the McCool Ranch and Presidents fields in California are generating revenue.”
“Our newest asset, the Asphalt Ridge Project in Utah has its first two wells drilled and completed. Heat treatment will begin this week on one well and heat treatment is expected to begin on the second well the first week of August. We expect that within 30 days, we will begin producing meaningful production on the Asphalt Ridge Project, adding yet another source of predictable cash flows to our business.”
Mr. Peterson continued, “We expect to increase oil production and cash flow at all of our current assets. McCool Ranch is primarily producing currently from one well and we intend to have five producing wells there in the near term. In addition, oil that has been produced from our HV3-A well in the President’s Field is being picked up this week to be sold and we are taking steps to increase our production from that field. Lastly, we are working closely with our operating partners on the Asphalt Ridge Project to aggressively add new wells throughout the remainder of 2024, concluded 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
Cautionary Statement Regarding Forward-Looking Statements
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 press 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 Trio’s Annual Report on Form 10-K and Amendment No. 1 thereto, both filed with the Securities and Exchange Commission (SEC). 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 press release, except as required by law.
Investor Relations Contact:
Redwood Empire Financial Communications
Michael Bayes
(404) 809-4172
michael@redwoodefc.com
FAQ
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