Oilfield Fully-Permitted to Restart Production from Six Previously Producing Wells
San Ardo Water Disposal Well WD-1 Successfully Refurbished
and the Testing and Repairs of On-Site Facilities In-Progress
Bakersfield, CA, Jan. 04, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: TPET) (“Trio” or the “Company”), a California-based oil and gas company, today provided an update on the restart of the McCool Ranch Oil Field (“McCool Ranch”).
On October 18, 2023, the Company announced its acquisition of an approximate 22% working interest in McCool Ranch, which is located in Monterey County seven miles north of the Company’s flagship South Salinas Project. The Company is acquiring McCool Ranch primarily through work commitment expenditures.
The restarting of McCool Ranch is currently in-progress and is proceeding favorably. The water disposal well at the field, the San Ardo WD-1 well, has been refurbished and tested and is in excellent condition, with water disposal by injection at this well able to commence as soon as needed. The testing and repairs of equipment and facilities, idle since about 2018, are well-advanced and also proceeding favorably. While there was concern that the boiler at the field -- an important piece of equipment that helps maintain the heat of produced oil at an appropriate temperature (e.g., for moving through lines and loading to trucks for delivery to market) -- might require fairly expensive repairs, the Company was able to return it to service at minimal cost and it is now up and running properly and efficiently.
Oil production from the six wells collectively peaked at about 400 barrels per day before the wells were idled in 2015 due to oil prices dropping below $30 per barrel. Returning the field to production will occur in steps with the 58X-23 and the HH-1-ST2 wells being the first two of the six previously producing oil wells to be returned to production. The Company anticipates that each well will initially be produced cold (i.e., without heating with steam) and subsequently put on production using the cyclic steam method.
There are three developed areas at McCool Ranch and the Company’s ownership is in the so-called Hangman Hollow Area that is relatively new and developed with four horizontal oil wells, two vertical oil wells, one water-disposal well, one freshwater well, and the capacity to drill approximately an additional 25 wells. In addition, a steam generator, boiler, three 5,000 barrel tanks, a 250 barrel test tank, water softener facilities, two fresh water tanks, two soft water tanks, in-field steam pipelines, oil pipelines and other facilities are installed at the site. The property is fully and properly permitted for oil and gas production, cyclic-steam injection and water disposal and is being restarted after having been idle since about 2015.
The Company’s cash investment in McCool Ranch is primarily allocated to restart production and is expected to establish important cash flow for the Company. The property has significant upside potential with many undrilled infill and development well locations identified. Pictures of McCool Ranch can be found on the Trio website at the following link: https://trio-petroleum.com
The Company believes that current oil prices and other considerations (e.g., approved permits) make this an ideal time to restart McCool Ranch, that the restart is going well, and that the field should soon be providing important cash flow to the Company.
Trio’s CEO, Michael L Peterson, stated: We are pleased with the progress in restarting McCool Ranch and expect that it will soon be providing important cash flow to the Company. We are working hard to deliver on our business plan of building cash-flow to help ensure the success of the Company and to increase shareholder value.
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” in Monterey County where it owns an 85.75% working interest, and an approximate 22% working interest in the McCool Ranch Oil Field in Monterey County.
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
