Bakersfield, CA, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: "TPET", "Trio" or the "Company"), a California-based oil and gas company, is pleased to announce oil production, using a downhole heater, from its first well HSO 2-4 on its Asphalt Ridge Project in Uintah County, Utah. This confirms that the pay zone bitumen, when heated, becomes less viscous and is able to drain into the wellbore and be pumped to the surface.
Commented Robin Ross, CEO of Trio, "The Asphalt Ridge Project is a very special project, known to be one of the largest tar-sand deposits in North America outside of Canada, making it a potential giant oilfield. According to J. Wallace Gwynn of Energy News, it is estimated to be the largest measured tar-sand resource in the United States. And given its low wax, negligible sulfur content, is expected to make the oil very desirable for many industries, including shipping. We believe that this project has the potential of being both large and profitable for the Company. According to an Optimization Study conducted by Dr Amanda Bustin, President of Bustin Earth Science Consultants, the HSO 2-4 well, which is approximately 1,390 feet deep, has an estimated ultimate recovery ("EUR") of 300,000 barrels of oil with an estimated initial production rate of approximately 40 barrels of oil per day. Trio's leasehold at the Asphalt Ridge Project includes approximately 30,000 acres thought to be capable of two and a half acre well spacing.
Now that the downhole heater has proven the ability to produce oil from the Asphalt Ridge sandstone reservoirs, plans are being put in-place by the Company to test a second heater from a different manufacturer that could potentially lower operating expenses on a significant basis (per Lafayette Energy Corp). The new heater has been delivered and installed and is currently being deployed in the first well, the 2-4 well, and the first heater is moving to 8-4. Production from the 2-4 and 8-4 wells will use the same separation equipment and facilities. A third well is expected to be drilled as early as late October and an additional five wells during Q4 2024, subject to rig and services availability.
In addition to proving production ability, it also appears that the production appears to have a component of higher-gravity oil that may be refined on site by boiling off 10-15% diesel into green (i.e., low sulfur) diesel, which is very encouraging. This may enable our project to sell both spec commercial grade asphalt binder, which is expected to sell locally at a premium to WTI, as well as green diesel that is expected to sell at an even higher margin to WTI (per Valkor Oil and Gas LLC project developer and operator).
Samples of the produced oil were sent for assay in order to verify oil composition and thus be able to design the appropriate above-ground facilities for separating the two products, heavy oil and lighter oil. After receiving the assay results, the appropriate above-ground collection and heavy/light oil separation systems will be designed and installed to handle the first three 7-well pads. The 2-4 well and perhaps the 8-4 well will then be put into full production.
The plan is to design the system for all seventeen of the 7-well pads with capacity for production from 21 wells from the first three 7-well pads and then subsequently expanded with each new 7-well pad that is brought into production as the drilling program is rolled out.
The majority working-interest owner of the project is Lafayette Energy Corp. and the Operator is Heavy Sweet Oil, LLC, in partnerships with Valkor Oil and Gas LLC, a vertically-integrated project development company with expertise in shallow heavy oil and in green and socially-beneficial hydrocarbon projects.
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, and Uintah County, Utah. In Monterey County, Trio owns a 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields in the South Salinas Project, and a 21.92% working interest in 800 acres in the McCool Ranch Field. In Uintah County, Trio owns a 2.25% working interest in 960 acres and options to acquire up to an additional 17.75% working interest in the 960 acres, and also a 20% working interest in an adjacent 1,920 acres, and a right of first refusal to participate in up to a 20% working interest in an additional approximate 30,000 acres of the Asphalt Ridge Project with other third parties.
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 reports filed with the Securities and Exchange Commission (SEC), including its 2024 Annual Report on Form 10-K filed on January 29, 2024. Copies 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 4172
[email protected]
