Company Currently Has No Outstanding Convertible Investments Remaining
Bakersfield, CA, April 09, 2024 (GLOBE NEWSWIRE) — Trio Petroleum Corp (NYSE American: “TPET”, “Trio” or the “Company”), a California-based oil and gas company, announced that on April 8, 2024, filed a Form 8-K with the Securities and Exchange Commission (“SEC”) detailing the terms and conditions under which the Company retired $2.6 million in outstanding convertible notes. These notes had been previously funded in two tranches in October of 2023.
“This is a positive first step in strengthening the Company’s balance sheet,” commented Michael Peterson, Chief Executive Officer of Trio Petroleum. “Improving the Company’s financial footing has been my top priority since taking the role of CEO in October of last year.”
“The first step in this process was the acquisition of the McCool Ranch Field where we could restart production and could drill over 20 new wells. Next was the resumption of production on our existing well in the South Salinas Project in Monterey County, CA. As we have recently disclosed, this process is progressing well, with more work to be done in the immediate term. This has jump started the Company’s cash flows, and the development has been well received by the investor community. Simultaneously, we have had active discussions with our largest creditor, and we recently negotiated the acceleration of all payments, effectively retiring all our convertible debt in a few short days.”
“We are now positioned to focus on our immediate future. We have a clean balance sheet. We have producing wells generating cash flows. We have opportunities to rework wells, drill new wells, and develop new assets. These are all compelling near-term milestones in strengthening the Company’s financial outlook in a methodical, disciplined fashion. This is what I have done repeatedly in similar situations with prior companies, and this is my sole focus at Trio today.” concluded Mr. Peterson.
As previously reported in a Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on October 4, 2024, Trio Petroleum Corp., a Delaware corporation (the “Company”) entered into a Securities Purchase Agreement with an institutional investor (the “Investor”) for convertible debt financing in an aggregate amount of up to $3,255,000, to be funded in up to two tranches in which the Company would issue senior secured original issue 7% discount convertible promissory notes in an aggregate principal amount of $3.5 million.
The Company issued to the Investor two promissory notes in an aggregate principal amount $2,550,000 in two tranches. On April 2, 2024, the Company and the Investor mutually agreed to permit the acceleration of more than six monthly payments pursuant to the Second Tranche Note, so that the entire outstanding balance of the Second Tranche Note could be repaid.
About Trio Petroleum Corp
Trio Petroleum Corp is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California, and Uinta County, Utah. Trio has a large, approximately 9,300-acre asset called the “South Salinas Project” in Monterey County, California, where it owns an 85.75% working interest, an approximate 22% working interest in the McCool Ranch Oil Field in Monterey County, and an option to acquire a 20% working interest in the approximately 30,000 acre Asphalt Ridge project in Uinta County, Utah.
Cautionary Statement Regarding Forward-Looking Statements
All statements in this press release of Trio Petroleum Corp (“Trio”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Trio’s control, that could cause actual results to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Trio’s S-1 filed with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. Trio undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Relations Contact:
Redwood Empire Financial Communications
Michael Bayes
(404) 809 4172
michael@redwoodefc.com
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