Trio Petroleum Corp Announces that the First Test Interval of its
HV-1 Discovery Well has Tested at Rates up to 125 BOPD along with
Associated Natural Gas
Testing Operations to Continue on Additional Intervals
Visit Trio Website for Oil Production Videos
DANVILLE, CA,
August 2, 2023 -- InvestorsHub NewsWire -- 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
4172
michael@redwoodefc.com