Trio Petroleum has signed an agreement with Croverro Energy for the development and drilling of heavy oil wells in the Lloydminster area located in Alberta and Saskatchewan, Canada. This program includes drilling up to 14 multi-well pads in these regions.
Details of the Well Drilling Program
The multi-year program includes five wells in Alberta and nine wells in Saskatchewan. Additionally, a re-entry opportunity in Rivercourse and the acquisition of producing oil assets are also considered. Croverro, a heavy oil operator based in Calgary, will be responsible for managing these assets.
Target Areas and Investment
The list of proposed wells in Alberta includes opportunities in Lloyd South and Rivercourse, while the Saskatchewan program includes Lloyd East, Paynton, Hillmond, and Marshall. Trio Petroleum has stated that development could begin in the near future, with these 14 wells expected to be completed in about 18 months.
According to the agreement, Trio may participate in consecutive two-well programs. For the initial two-well program, the company is required to pay CAD 450,000 to Croverro as a forecast cost. In related projects, Trio will provide approximately CAD 1.8 million in development capital to retain 80% of revenue until costs are recovered, after which it will decrease to 60%. Some opportunities have different participation terms.
Development will focus on targeting thin and extended heavy oil reservoirs in the Lloydminster area using multi-lateral horizontal wells. This technique increases reservoir contact by utilizing multiple lateral branches from a main well, enhancing recovery and capital efficiency.
Robin Ross, President and CEO of Trio, stated, "We believe that Croverro's opportunity is a strong combination of near-term development potential, scale, and operational expertise that aligns well with our growth plans." This agreement is based on Trio's existing operations in Alberta and Saskatchewan, and the company is looking to expand its oil business in Canada through acquisitions, development drilling, and operational partnerships.
