DANVILLE, CA, June 20, 2023 (GLOBE NEWSWIRE) -- Trio Petroleum Corp. (NYSE American: TPET) (“Trio”), an oil and gas exploration and development company focused on strategic, high-growth energy projects in California, announced today details on activity related to its recently drilled HV-1 discovery well.
The HV-1 well is a confirmation well that Trio recently drilled on a new oil and natural gas field that the company refers to as the Presidents Field. The Presidents Field is a large oil and gas development project located in the company’s South Salinas Project (“Project”) in Monterey County, California. 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).
The following is a summary of recent activity related to the HV-1 well:
On May 16, Trio announcedin a press release that:
1) the HV-1 well confirmed that there is a major accumulation of oil and gas in the Presidents Field in its South Salinas Project located in Monterey County, California. 2) 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. 3) 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. 4) initial oil and gas production rates at the HV-1 well will be announced after final completion operations.
Activity since the May 16 press release includes the following:
1) The HV-1 well was successfully completed by cementing seven-inch casing from a depth of 6,626 feet to the ground surface. 2) A CBL (cement bond log) was run on June 9 from 6,548 to 1,000 feet, utilizing Schlumberger Wireline Services. The CBL indicates that the hole is properly cemented with good cement-bond, which will support safe operations (including the protection of personnel and of the environment), and protection of any potential underground sources of drinking water. The CBL also indicates that remedial cement squeeze work is not needed, which helps control completion costs. 3) 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).
4) 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 near the top of the target Mid-Monterey Clay reservoir zone of the Monterey Formation 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).
Next steps include the following:
1) 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. 2) Each interval is planned to be perforated, acidized (i.e., acid cleanup) and tested individually. 3) The first interval to be tested is 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. 4) The operator is working with third-party independent experts on the design of the acid program, and is currently awaiting results of tests of chemical reactions of oil from the President Field with various acids to optimize the acid treatments (e.g., reduce sludging and emulsions, inhibit corrosion, etc.).
Mr. Frank Ingriselli, Trio Petroleum’s Chief Executive Officer, commented “We are pleased to have confirmation of the significant magnitude of the anticlinal geologic structure at Presidents Field and to see the interpretations of numerous faults and abundant open natural fractures in our target reservoir zones, which had good shows of oil and gas, including free oil, during drilling operations. We are looking forward to seeing final test results, and initial oil, gas, and water production rates in the very near future, which we will share with our investors and the public when available.”
About Trio PetroleumCorp
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.
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.
