Company Details Plans to Increase Production and Cash Flow
Bakersfield, CA, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE:TPET) ("Trio" or the "Company"), a California-based oil and gas company, today provided an update on operational activities the Company is taking to increase oil production and cash flow at the McCool Ranch Oilfield in Monterey County, California.
Oil production has been stable for a number of months at about 10 to 20 BOPD from the HH-1 and 35X wells collectively and we are actively looking into the best course of action to increase oil production and cash flow while containing costs, including resuming cyclic-steam operations at these two wells, and also by restarting production from three additional wells - the 58X, HH-3 and HH-4.
The HH-1 and 35X wells are both completed in a zone of heavy-oil at the top of the high-quality Lombardi Oil Sand at a shallow depth of approximately 2,200 feet. The HH-1 well has a short horizontal completion and the 35X a vertical completion in the oil sand.
Since we restarted oil production at McCool Ranch earlier this year, the aforementioned HH-1 and 35X wells have each been producing "cold" (i.e., without steam injection), and it has been our expectation that each would be produced cold as long as profitable and that each would then be returned to cyclic-steam operations, also known as "huff and puff," which is proven at McCool Ranch to significantly increase production and cash flow. The Company has a steam generator on-site that will be utilized for cyclic-steam operations.
The wells at McCool Ranch historically have responded favorably to cyclic-steam operations. When our current five oil wells (i.e., the HH-1, HH-3, HH-4, 35X & 58X wells) were initially steamed in 2014-2015, oil production steadily increased over a nine-month period from 30 BOPD to a peak of about 400 BOPD. During cyclic-steam operations the HH-1 and 35X wells briefly achieved rates of 175 and 290 BOPD, respectively, immediately after being returned to oil production after steaming.
KLS Petroleum Consulting LLC ("KLSP"), a third-party, independent engineering firm, recommends that McCool Ranch be developed with horizontal wells, each landed in the Lombardi Oil Sand with a 1,000-foot lateral. We estimate that TPET's property can probably accommodate approximately 22 additional such horizontal wells and TPET accordingly may commence a drilling program in 2025. TPET expects to add the reserve value of the McCool Ranch Field to the Company's reserve report after a further period of observation and review of the oil production that was restarted on February 22, 2024.
"We are pleased to provide this operational update on McCool Ranch," commented Robin Ross, CEO of Trio. "Previous operations demonstrate that it is possible to increase production at McCool Ranch, and this is our intent now, and we are evaluating various options besides cyclic-steam to optimize production and minimize costs. Looking beyond our current assets, our focus remains on acquiring projects that generate immediate cash flow or offer transformative growth potential with strategic investment. This approach aligns with our long-term vision of creating exponential value while managing risk and resources effectively."
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 an option to acquire 20% working interest in an adjacent 1,920 acres, and a right of first refusal to participate in an additional approximate 30,000 acres of the Asphalt Ridge Project at terms offered to 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 sections of the Trio reports filed with the Securities and Exchange Commission (SEC). 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]
