California-based oil and gas company Trio Petroleum Corp. announced it has secured a four-month exclusive option to acquire a natural gas prospect in the Sacramento Basin with the potential to produce an estimated 40 Bcf of gas, according to an Oct. 23 release.
The company believes this prospect, which is based on 3D seismic data, could provide significant natural gas production and cash flow due to the prospect’s proximity to prolific gas fields, easy access to a gas pipeline and targets gas sands at approximately 8,000 ft, the release stated.
“We are fulfilling our business plan to make smart acquisitions to help ensure the success of the company and to increase shareholder value,” Trio CEO Michael L. Peterson said in the release. “We will continue to search for acquisitions to help diversify and provide significant upside opportunity to our production and cash flow.”
According to Trio, the prospect is fully leased and permitting for an exploration well is in an advanced stage.
Recommended Reading
Report: Freeport LNG Hits Sixth Day of Dwindling Gas Consumption
2024-04-17 - With Freeport LNG operating at a fraction of its full capacity, natural gas futures have fallen following a short rally the week before.
US NatGas Futures Hit Over 2-week Low on Lower Demand View
2024-04-15 - U.S. natural gas futures fell about 2% to a more than two-week low on April 15, weighed down by lower demand forecasts for this week than previously expected.
US NatGas Flows to Freeport LNG Export Plant Drop Near Zero
2024-04-11 - The startup and shutdown of Freeport has in the past had a major impact on U.S. and European gas prices.
US Natgas Prices Hit 5-week High on Rising Feedgas to Freeport LNG, Output Drop
2024-04-10 - U.S. natural gas futures climbed to a five-week high on April 10 on an increase in feedgas to the Freeport LNG export plant and a drop in output as pipeline maintenance trapped gas in Texas.
Freeport LNG Says Trains 1, 2 at Texas Facility May Shut Until May
2024-03-20 - Freeport LNG on March 20 said its Train 2 liquefaction unit at the Texas plant has been shut down, while Train 1 will be taken down imminently as it expects inspections and any subsequent repairs at both the units to be completed by May.