Trio Petroleum Holds $22M Cash Reserves While Pursuing 550 BOE/D Acquisitions
TPET•Trio Petroleum holds $22 million cash, zero long-term debt and has raised roughly $1.7 million via its ATM program while submitting 12 non-binding proposals targeting C$25,000/flowing BOE d assets averaging 550 BOE d in Alberta and Saskatchewan. Current production of 78.7 BOPD could rise to 170.7 BOPD through optimization and its new water disposal facility.
1. Financial Position and Acquisition Strategy
As of April 30, Trio Petroleum reported $22 million in cash and cash equivalents, no long-term debt and net proceeds of $1.7 million through its ATM facility. This strong balance sheet underpins a disciplined acquisition strategy focused on long-term shareholder value rather than immediate capital deployment.
2. Proposed Acquisition Pipeline
The company has submitted 12 non-binding proposals for producing oil and gas properties in Alberta and Saskatchewan, targeting assets averaging 550 BOE/d. Valuations have averaged C$25,000 per flowing BOE/d at roughly 3X cash flow, with both operated and non-operated light and heavy oil opportunities under evaluation.
3. Production Optimization Updates
Post-spring breakup optimizations have lifted current production to approximately 78.7 BOPD. Workovers and recompletions across Saskatchewan and Alberta wells could boost output to an estimated 132.7 BOPD by addressing sand challenges and recompleting formations like Colony and Sparky.
4. Water Disposal Facility Potential
The newly commissioned water disposal facility can process up to 1,000 cubic metres per day and is marketed to third-party operators. At C$3.00 per cubic metre disposal fees and historical oil recovery rates, the facility could generate C$90,000 in monthly gross revenue and recover an additional 38 BOPD.
