California-based Trio Petroleum Corp. secured an option from Heavy Sweet Oil LLC to acquire 20% interest in a low-sulfur, heavy-oil Asphalt Ridge development project in Uinta County, Utah, the company announced Jan. 5 in a press release.
Trio Petroleum secured the option to participate in Heavy Sweet’s initial 960-acre drilling and production program, which is slated to begin first quarter 2024, according to the company’s filing with the Securities and Exchange Commission (SEC).
The Asphalt Ridge option involves a nine-month term ending Aug. 10 with a purchase price of $2 million, which may be paid in tranches provided and the first tranche is paid out during the option period. On Dec. 29, the company paid the $200,000 advance of the total purchase price and attained a 2% interest in the Asphalt Ridge Leases.
Heavy Sweet Oil also agreed to fund a maximum of $5 million for the initial development program, with additional participating parties splitting costs thereafter based on ownership interests.
Heavy Sweet Oil also entered into a leasehold acquisition and development option agreement with Lafayette Energy Corp. to acquire up to 30% of the Asphalt Ridge Leases. In Trio Petroleum and Heavy Sweet Oil’s option agreement, provided Lafayette Energy does not exercise its option rights, Trio Petroleum has the right to acquire up to all 30% of the Lafayette Energy option.
“It is excellent to be able to diversify our exciting portfolio of California opportunities with such a high-potential asset in Utah, especially one that will not require a lot of additional capital expenditures according to the operator’s development plan,” Michael L Peterson, Trio Petroleum’s CEO, said in the press release. “Development is commencing now and, with success, the Utah asset may be cash flowing in mid-2024. We now have two major assets in our portfolio, the South Salinas Project in California and the Asphalt Ridge Project in Utah.”
Recommended Reading
Exxon’s Guyana Gas Project a “Win-Win,” Set for Hook-up by Year-end ‘24
2024-04-26 - Exxon Mobil Corp. CEO Darren Woods said the company’s gas-to-power project in Guyana as a “win-win proposition particularly for the people of Guyana” when completed and hooked-up by year-end 2024.
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Exxon’s Payara Hits 220,000 bbl/d Ceiling in Just Three Months
2024-02-05 - ExxonMobil Corp.’s third development offshore Guyana in the Stabroek Block — the Payara project— reached its nameplate production capacity of 220,000 bbl/d in January 2024, less than three months after commencing production and ahead of schedule.