Trio Petroleum Announces Lloydminster Heavy-Oil Farm-In And Multilateral Development Program With Croverro Energy
Trio Petroleum has signed a farm-in and development agreement with Calgary-based Croverro Energy, giving it a low-cost option on a multilateral heavy-oil program in the Lloydminster region of Alberta and Saskatchewan. The program covers up to 14 new multilateral wells over roughly eighteen months (five in Alberta, nine in Saskatchewan), plus a Rivercourse re-entry and an oil producing-property acquisition, with Croverro remaining operator. Economics call for a CAD $450,000 prospect fee on the initial 2-well earning program, with Trio funding 100% of approximately $1.8 million Canadian in development capital for an 80% revenue interest through payout, stepping down to 60% after payout.
Key figures
- Prospect fee
- CAD $450,000
- Alberta wells
- 5
- Saskatchewan wells
- 9
- Additional components
- Rivercourse re-entry plus oil producing-property acquisition
- New multilateral wells
- 14
- Initial earning program
- 2-well
- Program duration months
- 18
- Revenue interest after payout
- 60%
- Revenue interest through payout
- 80%
- Development capital funded by trio
- approximately $1.8 million Canadian (100% funded)
AI analysis
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