Development Plan includes resumption of production from HV-3A and BM 2-2 wells
Scheduled Production Test for HV-1 Discovery Well Set for the Week of July 10, 2023
DANVILLE, CA, July 07, 2023 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: TPET) (“Trio” or the “Company”), a California-based oil and gas company, today announced that it has commenced activities for the Full Field Development of its South Salinas Project (“Project”). The services of an independent, third-party consulting firm have been engaged to expand the existing Initial Environmental Impact Report (IEIR) into a Full Environmental Impact Report (FEIR) and to obtain conditional use permits and other permits that are necessary for the Full Field Development of the Project. This firm has prior experience and expertise at the Project and was instrumental in generating the IEIR and in obtaining Trio’s existing permits for the HV-1, HV-2, HV-3A and HV-4 wells.
Trio’s application for a Full Field Development Permit follows Trio’s existing Exploration Permit and when approved will enable long-term oil and gas production, the drilling of new wells (in addition to those with existing permits), the resumption of oil and gas production at the existing HV-3A and BM 2-2 wells, the on-site disposal of produced water at the BM 1-2-RD1 well, the construction of permanent production facilities, etc. The consulting firm will assist and play a key role in obtaining the Full Field Development Permit.
The production test of the South Salinas Project HV-1 discovery well is still expected to commence the week of July 10, 2023, and will include the perforation and acidization (for borehole acid-cleanup) of the well. The production rig, production tanks and other necessary equipment are currently moving onto location. Initial test results are expected to be available late next week or the following week.
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 from acquisitions of equity interests contemplated in other producing assets, such as the previously announced and currently under-review acquisition of an interest in the Union Avenue producing oil field.
CEO Frank Ingriselli stated: “We are thrilled to embark on the commencement of Full Field Development activities for our South Salinas Project, marking an exciting milestone for Trio. The upcoming testing of our HV-1 well holds immense value in shaping the design of this plan, which, as previously disclosed, carries a discounted potential of approximately $2 billion in net cash flow. We are eagerly looking forward to sharing the final results with our shareholders in the near future, solidifying our commitment to transparency and maximizing 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” 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
