Trio Petroleum Corp. (NYSE American: TPET) (“
Trio”
or the “
Company”), a California-based oil and gas
company, today announced that the first test interval (a
stratigraphic subzone of the Mid-Monterey Clay Member of the
Monterey Formation) that is being production tested at the HV-1
discovery well of the South Salinas Project has tested at rates up
to approximately 125 barrels of oil per day (BOPD) with associated
natural gas and water. These initial test results are preliminary
and are based on swabbing operations that may not be definitive.
Swabbing operations of the first test interval are scheduled
through the end of this week to obtain additional data. The Company
then plans to conduct testing operations on additional zones which
are believed to be even more prospective.
Videos of the oil production test can be found
on the “Investors” tab of the Company’s website:
https://ir.trio-petroleum.com
“The initial findings of the HV-1 well are
highly encouraging, with improving overall production rates and
increasing oil cuts. Despite not initially assigning reserves to
the Mid-Monterey Clay interval, our testing shows great promise.
This interval is about 2,000 feet thick, and currently, we are only
testing a small portion of it. The Mid-Monterey Clay interval was
on our radar as a potential producing zone due to good oil
indications in our HV-3A discovery well and other nearby wells.”
said CEO Frank Ingriselli. “While we eagerly anticipate additional
results from the ongoing testing of both the Mid-Monterey Clay and
the shallower zones, particularly the Yellow-Brown Zone, we are
delighted with the invaluable insights they are providing. These
insights will play a pivotal role in shaping our development plan,
which has already been disclosed to hold a discounted potential of
approximately $2 billion in net cash flow. This potential
production asset could lead to cash flowing operations in the third
quarter.”
HV-1 Discovery Well Production Test
Update
On July 15-16, the HV-1 well was perforated at a
measured depth of 6,379-6,560 feet (181 gross feet) in the
Mid-Monterey Clay Member and acidized for borehole-cleanup. Nine
days of swabbing operations carried-out since that time show
improving results and currently indicate that the first test
interval may be capable of producing approximately 500 barrels of
fluid per day, with approximately 25% oil cut (i.e., 125 BOPD) and
associated gas. However, as noted above, these initial test results
are preliminary and are based on short-term swabbing operations
that may not be definitive and, therefore, swabbing and testing
operations are continuing to obtain additional and more-definitive
data.
It is important to note that the
primary-objective of the HV-1 well is the shallower “Yellow-Brown
Zone” of the Monterey Formation, which has not yet been tested in
the HV-1 well and which occurs in the HV-1 well at 4,781-5,863 feet
(measured depth). The Yellow-Brown Zone was oil and gas productive
in the Company’s HV-3A discovery well and is assigned reserves in
the Company’s Reserve Report as filed with the SEC, whereas the
deeper Mid-Monterey Clay Member that is now being tested (i.e.,
perforations at 6,379-6,560’) is currently not assigned reserves.
Project reserves will increase if economic production is
established in the Mid-Monterey Clay in the HV-1 well.
Production-testing operations at the appropriate time will move up
hole to test the primary-objective Yellow-Brown Zone, which the
Company believes looks very promising.
The HV-1 discovery well is the second well
drilled to-date in the Presidents Oil field of the Company’s South
Salinas Project, which is located in Monterey County, California.
Earlier press releases (June 20, June 30 & July 7, 2023)
included the following background information about the HV-1
confirmation well:
1) The HV-1 well is a two-mile step-out from
Trio’s HV-3A discovery well that found high-quality, mid-gravity
oil at depths between 3,750 to 5,100 feet.2) The HV-1 well drilled
through approximately 1,800 feet of the Monterey Formation with
major indications of oil and gas prior to reaching total depth at
6,631 feet.3) The HV-1 well confirmed a major accumulation of oil
and gas in the Presidents Field.4) The HV-1 well was successfully
completed by cementing seven-inch casing from a depth of 6,626 feet
to the ground surface.5) A Schlumberger CBL (cement bond log)
indicates that the hole is properly cemented, which will support
safe operations (including the protection of personnel and of the
environment) and protect any potential underground sources of
drinking water.6) An independent, third-party interpretation by a
log analyst of the Schlumberger FMI log (Formation Image log) that
was run in the HV-1 well indicates:
a) There are
abundant, open natural-fractures (more than 900) in the target
reservoir zones of the Monterey Formation (note: open
natural-fractures commonly are an important ingredient of
successful Monterey Formation oil/gas wells).b) There are common
faults (five faults and twenty-four possible faults and/or
micro-faults) in the target reservoir zones of the Monterey
Formation (note: faults and associated natural-fractures are common
important ingredients of successful Monterey Formation oil/gas
wells).
7) An independent, third-party, integrated
interpretation by a geophysicist of the HV-1 well data and the 3D
seismic data indicates:
a) The HV-1 well has
confirmed the occurrence of the major, subsurface, anticlinal
geologic structure that comprises the Presidents Field, almost
exactly as previously mapped.b) The HV-1 well in the
secondary-objective Mid-Monterey Clay Member drilled across a
normal-fault (one of the aforementioned five faults identified in
the FMI data) into a high fault-block along the crest of the
anticline (note: the FMI interpretation indicates that the high
fault-block has abundant, open natural-fractures).
8) Trio Petroleum LLC (the operator) intends to
production test the HV-1 well from approximately 4,500 to 6,600
feet (measured depth), which will be done in likely four or more
successive stages across different depth intervals, working from
the base upwards.
a) Each interval is
planned to be perforated, acidized (i.e., acid cleanup) and tested
individually.b) The first interval to be tested was planned to be
from approximately 6,390 to 6,620 feet, which is the aforementioned
interpreted high fault-block with abundant, open natural-fractures
and various faults. This interval is comprised largely of
porcelanous claystone. There were significant shows of oil and gas
and free oil in this interval during drilling operations.c) Initial
oil and gas production rates at the HV-1 well will be announced
after initial production tests are completed.
Trio anticipates that oil production from the
HV-1 well will generate cash flow in Q3, 2023, and that additional
cash flow will be generated in Q3-Q4, 2023, from the planned HV-2
and HV-4 wells, and also from acquisitions of equity interests in
other producing assets, such as the previously-announced and
currently under-review acquisition of an interest in the Union
Avenue producing oil field.
Full field development of the Project has an
estimated net cash flow to the company, discounted at 10%, of
approximately $2 billion, as described in the company’s public
filings with the SEC and on its website
(www.trio-petroleum.com).
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. Trio
has a large, approximately 9,267-acre asset called the “South
Salinas Project” where it owns an 85.75% working interest. Trio’s
near-term plans include testing and producing the HV-1 well, and
then drilling the HV-2 and HV-4 wells. Previous operations on this
asset have successfully drilled two (2) production/discovery wells
(i.e., the HV-3A and BM 2-2 wells) that Trio now owns.
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
4172michael@redwoodefc.com
Trio Petroleum (AMEX:TPET)
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