Shares of Trio Petroleum Corp. (NYSE:TPET) are rallying Thursday afternoon as escalating geopolitical friction in the Middle East drove crude oil benchmarks to multi-month highs.

Rising Geopolitical Tensions Push Crude Above $100

The rally across upstream exploration and production equities comes as international crude prices jumped Thursday, with Brent crude climbing past $101 per barrel.

An OPEC report indicated that Saudi Arabia’s August oil production fell to the lowest level since 1990. Also, Houthi rebel advances in Yemen may also be viewed as a risk to marine energy transport in the Red Sea.

Q3 Financial Results Highlight Top-Line Growth and Cash Runway

Providing fundamental backing to the stock’s rally, Trio Petroleum filed its fiscal third-quarter financial report on Wednesday.

For the nine-month period ended July 31, revenue expanded to $679,031, up from $226,485 in the prior-year period, driven by production progress across its flagship South Salinas project in Monterey County. The company’s net loss narrowed to $4.25 million, supported by an 81% year-over-year revenue increase for the quarter.

Importantly for investors, management reported that equity sales under its at-the-market facility bolstered cash and cash equivalents to $24.3 million with working capital of $23.5 million as of July 31.

Executive leadership noted that the capitalized balance sheet successfully alleviates prior going-concern uncertainties, providing working capital to fund ongoing development across its California and Utah assets.

TPET Stock Surges Thursday

TPET Price Action: Trio Petroleum shares were up 12.71% at $2.04 at the time of publication on Thursday, according to Benzinga Pro data.

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