Trio Petroleum Corp. (NYSE:TPET) shares are trading higher Tuesday after the California-based oil company announced it successfully completed its first two exploratory wells in Utah.

Under the current agreement, Trio's operating partner, Lafayette Energy Corp, will cover all drilling expenses up to $10 million.

The company projects an estimates a 40% oil recovery and an estimated ultimate recovery of 300,000 barrels of oil per well with a production rate of approximately 40 barrels of oil per day per well.

There may be an opportunity for Trio to expand the project by an additional 1,920 acres once the company completes the required steps with the Utah Division of Oil, Gas and Mining.

In addition, Valkor Oil and Gas, operating on behalf of Lafayette, plans to drill a third well by late June and five more wells in the 2024 third quarter.

"Based on this new data, we believe the economic impact of our ownership interest in the Asphalt Ridge project has the potential to quickly exceed that of our substantial assets in California," said Micheal Peterson, CEO of Trio.

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TPET Price Action: At the time of publication, Trio Petroleum shares are trading 62% higher at 37 cents, according to data from Benzinga Pro.

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