Trio Petroleum Corp Announces Acquisition of a 22% Interest in the McCool Ranch Oil Field
18 Outubro 2023 - 9:00AM
Trio Petroleum Corp (NYSE American: TPET) (“
Trio”
or the “
Company”), a California-based oil and gas
company, today announced that it has acquired an approximate 22%
working interest in the McCool Ranch Oil Field (“McCool Ranch”).
McCool Ranch is located in Monterey County seven miles north of the
Company’s flagship South Salinas Project. The Company is acquiring
McCool Ranch through work commitment expenditures.
There are three developed areas at McCool Ranch
and the Company’s acquisition is in the so-called Hangman Hollow
Area that is relatively new and 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, 250 barrel test tank, water softener facilities, two fresh
water tanks, two soft water tanks, in-field steam pipelines, oil
pipelines and other facilities. The property is fully and properly
permitted for oil and gas production, cyclic-steam injection and
water disposal and is currently idle. 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. Pictures of McCool Ranch can
be found on the Trio website at the following link:
https://trio-petroleum.com
Oil wells at the property will initially be
restarted “cold” (i.e., without steam injection) and over time each
well will be returned to cyclic-steam stimulation (“CSS”)
operations, also known as ‘huff and puff’. The Company will receive
a disproportionately high share of the cash flow until payout of
its work commitments funds. Payout is expected to occur in the
first year after restarting the field, subject to the successful
restart of production as planned. The ‘cold oil’ production is
expected to last about two months and will begin following
completion of remedial activities on five wells and minor repairs
and inspections on the steam generation and distribution
facilities. The CSS plan is for each well to undergo approximately
10 days of steam injection followed by a ‘soak’ period prior to the
well’s return to production. This process is expected to be
repeated for several years.
The heavy-oil reservoir is the high-quality
(i.e., sidewall core data indicate up to 36% porosity and 3.5 Darcy
permeability) ‘Lombardi’ oil sand at a depth of 2,100 feet. The
Lombardi Sand at the acquired property is estimated to contain up
to about seven million barrels of oil-in-place. The property
produced oil until December 2015 when it was shut-in, as were many
other oil fields, due to collapse in oil price to below $40 per
barrel. The Company believes that current oil prices and other
considerations (e.g., approved permits) make this an ideal time to
restart the field.
There are several fields within a mile of McCool
Ranch that have demonstrated the effective use of horizontal wells
and steam-drive, which is different than cyclic-steam. ‘Steam
drive’ utilizes continuous steam injection at dedicated
steam-injection wells that are surrounded by producing oil wells.
Steam drive can significantly increase oil recovery and this
process has been successfully applied in the adjacent Lynch Canyon
field. Lynch Canyon has produced over 2.8 million stock tank
barrels of oil (MMSTB) and is currently producing about 6,000
barrels of oil per month from the Lanigan Sand. The Lanigan also
contains oil at McCool Ranch and may be capable of oil production
there but it currently remains a secondary target to the proven
Lombardi. Under full development the acquired property will likely
have about 15 horizontal wells and, employing only CCS, is expected
to recover about 1.2 MMSTB of oil. However, if it is determined
that a steam drive process is an appropriate development strategy,
McCool Ranch may be capable of producing an additional 1.0
MMSTB.
The Company believes this acquisition is an
important step in building a portfolio of high-quality development
and exploration opportunities, diversifying the Company's assets
and fueling the Company’s growth.
Trio’s newly appointed CEO, Michael L Peterson,
stated: “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.”
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
This press release contains "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. 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
Trio's control, that could cause actual results to materially and
adversely differ from such statements, which risks, uncertainties
and other factors are included from time to time in filings made by
Trio with the U.S. Securities and Exchange Commission (“SEC”),
including, but not limited to Trio’s Registration Statement on Form
S-1 filed initially filed with the SEC on June 14, 2023 and
declared effective on July 6, 2023, Trio’s Report on Form 10-Q for
the quarterly period ended April 30, 2023 (filed with the SEC on
June 8, 2023) and Trio’s Report on Form 10-Q for the quarterly
period ended July 31, 2023 (filed with the SEC on September 11,
2023), all of which are available on the SEC’s website
at www.sec.gov . Trio undertakes no obligation to update
these statements for revisions or changes after the date of this
press release, except as required by law.
Investor Relations Contact:Redwood Empire
Financial CommunicationsMichael Bayes(404) 809
4172michael@redwoodefc.com
Trio Petroleum (AMEX:TPET)
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