Production Test Scheduled for the Week of July 10, 2023
Cash Flow Expected in Q3 2023
DANVILLE, CA, June 30, 2023 (GLOBE NEWSWIRE) -- Trio Petroleum Corp. (NYSE American: TPET) (“Trio” or the “Company”), a California-based oil and gas company, today announced that the production test of the South Salinas Project HV-1 discovery well is set to commence the week of July 10, 2023, which will include the perforation and acidization (for borehole acid-cleanup) of the well. The production rig, production tanks and other necessary equipment are scheduled to move onto location starting July 6, 2023. Initial test results are expected to be available late the week of July 10, or the following week.
CEO Frank Ingriselli stated: “The success of our drilling program at the HV-1 well has not only surpassed expectations but now pivots to beginning testing operations in the upcoming weeks. The testing operations will play a pivotal role in providing invaluable insights into the production potential of our discovery and the design of our full development plan which, as previously disclosed, has a discounted potential of approximately $2 billion in net cash flow. With the anticipated production from this asset, we are expecting to have cash flowing operations in the third quarter and potentially cash flow positive operations in the fourth quarter. We have diligently executed our ambitious development plan for our South Salinas project, demonstrating our commitment to Trio's exciting trajectory.”
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).
Highlights of the HV-1 drilling program include:
- 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.
- 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.
- 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.
- Initial oil and gas production rates at the HV-1 well will be announced after initial production tests are completed.
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.
Trio Contact:
Frank C. Ingriselli
CEO
Trio Petroleum Corp
www.trio-petroleum.com
Ingriselli@gvest.com
