Trio Petroleum has agreed to acquire around a 22% stake in the McCool Ranch oilfield in Monterey County, California, US.

The stake in the field, which is located seven miles north of Trio Petroleum’s South Salinas oil and gas project, is being acquired by the company through work commitment expenses.

The McCool Ranch field comprises three developed areas.

Trio is acquiring the Hangman Hollow Area at the field. This property is fully permitted for oil and gas production, cyclic-steam injection and water disposal.

Said to be relatively new, the Hangman Hollow Area is developed with four horizontal oil wells, two vertical oil wells, one water-disposal well, one freshwater well, a steam generator, boiler, three 5,000-barrel tanks, a 250-barrel test tank, and other facilities.

In a press statement, Trio Petroleum said: “The Company’s investment is allocated to restart production from this field and is expected to establish important cash flow for the Company. The property has significant upside potential with many undrilled infill and development well locations identified.”

Trio said the acquisition marks an important step in developing its portfolio of quality development and exploration opportunities while diversifying its assets.

Trio CEO Michael L Peterson said: “We are pleased to close this acquisition at McCool Ranch. We are fulfilling our business plan to make smart acquisitions to help ensure the success of the company and to increase shareholder value.

“Our independent Special Acquisition Committee will continue to search for acquisitions to help diversify and provide significant upside opportunity to our production and cash flow. With each asset we are dedicated to bring them onto production in a cost efficient and timely manner.”