Trio Petroleum (TPET) said Thursday it signed a non-binding agreement to buy 100% working interest in oil and gas assets held by Novacor Exploration in Canadian province Saskatchewan's Lloydminster heavy oil region for about 2 million Canadian dollars ($1.4 million).

The company said the potential purchase involves seven producing wells yielding about 70 barrels of heavy crude oil daily, with additional opportunities for increased production through reactivated wells and drilling.

Trio said the deal includes $650,000 in cash, with the balance in Trio common stock. Novacor will remain the operator of the assets, the company added.

Shares of Trio soared more than 208% in early trading.