Would you believe me if I told you that this company’s market cap trades nearly $2 billion below its potential net cash flows?
That is precisely what is happening with Trio Petroleum (NYSE: TPET).
Since its April 2023 IPO, Trio has established itself as a key player in California’s oil and gas market with multiple high-caliber projects and the completion of its HV-1 Well drilling program.
These efforts have helped the Company bolster its portfolio and create more value for shareholders than ever before.
However, professional investors have yet to realize this discrepancy between price and value, and you have the opportunity to take advantage.
In this article, we’ll uncover why Trio offers investors tremendous upside potential and how they are strengthening their position in the marketplace.
If you want exposure to an outstanding oil and gas company, with quality projects and a proven management team, continue reading below.
Trio Petroleum Overview
To bring you up to speed, Trio Petroleum is an oil and gas exploration and development company focused on strategic, high-growth energy projects in the consumer-rich market of California.
Trio’s flagship asset is its 9,267-acre South Salinas Project, located in Monterrey California, in which the company owns an 85.75% working interest.
South Salinas is a significant oil and gas-producing asset for Trio, with an estimated 39.0 million barrels of oil (MMBO) and 40.0 billion cubic feet of gas (BCFG) in probable underdeveloped reserves.
Moreover, the Company has the potential to unlock an additional 92.4 MMBO and 148.8 BCFG in possible undeveloped reserves.
The combined value of these reserves is projected to produce over $6.356 billion in net cash flows or $1.998 billion at a 10% discount.
Incredibly, Trio currently trades at a market value of just $33 million despite owning a project with the potential to be a multi-billion dollar asset.
Better yet, this is just one of Trio’s oil and gas projects meaning that there is even more untapped value to be discovered
While the market may not realize it, one thing is for certain, Trio’s management team does not miss when it comes to discovering and developing high-value oil and gas projects.
Led by CEO Frank Ingriselli, Trio Petroleum is guided by one of the most experienced professionals in the oil and gas business.
Mr. Ingriselli’s expertise spans more the four decades, operating in various senior executive roles across multiple notable companies.
These include tenures at PEDEVCO (NYSE: PED) as its founder, Chairman, and CEO; Pacific Asia Petroleum as its founder, Chairman, and CEO; and Texaco, where he served as the President of Texaco International Operations and President of Texaco Technology Ventures, among other senior executive positions, for 23 years.
These unique experiences have helped him and his team build the necessary skills for raising capital, building companies, and economically producing quality oil and gas projects, including those being developed at Trio Petroleum.
What’s more, Frank is joined by a like-minded management team that is determined to create long-term shareholder value and unlock the hidden potential of this promising company.
To learn about Trio Petroleum’s entire management team, click the link below.
Trio Strikes Oil!
Moving on to the Company’s latest developments, Trio Petroleum just announced that its HV-1 well confirmed a major oil and gas accumulation at its flagship South Salinas Project.
This is exciting news as the Company was able to execute its drilling program much quicker than anticipated, and is now in a position to accelerate its development plans to commercialize and produce from the asset.
The HV-1 well was drilled on a new oil and natural gas field called the Presidents Field, which was selected based on the interpretation of three-dimensional seismic data aimed at confirming and defining the magnitude of the oil reserve.
In total, the well drilled through approximately 1,800 feet of the Monterey Formation and discovered major signs of oil and gas before reaching a final depth of 6,631 feet.
This is a promising indication that Trio’s assessment of South Salinas is accurate, especially given that the HV-1 well is a two-mile step-out from Trio’s HV-3A discovery well where high-quality, mid-gravity oil was found at depths between 3,750 to 5,100 feet.
Soon, Trio plans to initiate testing and producing from the HV-1 well, followed up by more drilling at the Company’s HV-2 and HV-4 wells.
When discussing the results at HV-1, CEO Frank Ingriselli said, “We are very excited and pleased with our discovery of oil and gas at the HV-1 well and with the positive impact that we expect this well will have on Trio’s future and our commitment to grow shareholder value.”
Strengthening its Project Portfolio
Beyond the South Salinas Project, Trio Petroleum is making moves to expand, diversify and strengthen its oil and gas project portfolio.
Most recently, the Company announced that it is signing an Acquisition Agreement to potentially acquire up to 100% of the working interest in the Union Avenue Field, located in Bakersfield, California.
Union Avenue is a mature field that historically produced roughly 2.3 million barrels of oil and 1.2 billion cubic feet of gas.
However, the project still has significant long-term, oil-production potential, including a partly-developed, new-pool discovery.
Ensuring that they perform proper due diligence, Trio’s management engaged KLS Petroleum Consulting LLC, an independent engineering firm, to conduct a comprehensive analysis and valuation of the asset.
The analysis of Union Avenue is now complete and has been returned to Trio for further evaluation.
In addition to Union Avenue, Trio Petroleum has the exclusive options to acquire 22% of the Kern Front Project and 44% of the Hangman Hollow Field.
The Kern Front Project runs along the Northern extension of Kern Front Field, while the Hangman Hollow Field is a developed oil field (discovered in 2011) with six oil wells and one water disposal well, as well as existing infrastructure.
In all, these projects have the potential to help Trio Petroleum become cash flow positive, thus solidifying its business and increasing value for shareholders.
Trio Petroleum (NYSE: TPET) presents investors with an extraordinary opportunity to invest in an oil and gas company with major upside potential.
With a strong presence in California’s oil and gas market, valuable projects, and a world-class management team, not only are you exposing yourself to one of the strongest industries in the market today, but you are also owning an asset that is fundamentally sound and poised for growth.
What’s more, Trio’s expansion plans, including the potential acquisition of the Union Avenue Field, Kern Front Project, and Hangman Hollow Field, demonstrate the Company’s commitment to diversifying and strengthening its portfolio.
These additional projects offer even more untapped potential and an opportunity for Trio to play a prominent role in California’s oil and gas market, and beyond.
If you want to learn more about the tremendous opportunities Trio Petroleum has to offer, check out its investor presentation below.
|TRIO PETROLEUM (NYSE: TPET)
We are not brokers, investment, or financial advisers; you should not rely on the information herein as investment advice. If you are seeking personalized investment advice, please contact a qualified and registered broker, investment adviser, or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Edge Investments and its owners currently hold shares in Trio Petroleum and have been compensated for content creation, amounting to six-thousand, six hundred fifty-four US dollars plus five-thousand, five hundred forty-five in restricted stock units. Edge Investments and its owners reserve the right to buy and sell shares in Trio Petroleum without further notice, which may impact the share price. Please do your own research before investing, including reading the companies’ public filings, press releases, and risk disclosures. The company provided information in this profile, extracted from public filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. The commentary and opinions in this article are our own, so please do your own research
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