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Company Successfully Completes First Two Exploratory Wells in Utah

Globe Newswire 11-Jun-2024 8:00 AM

HSO 8-4 Well Discovers Over 100' of Oil-Bearing Pay Zone in Rimrock Sandstone

HSO 2-4 Discovers Over 120' of Oil-Bearing Pay Zone in Rimrock Sandstone & 69' of Oil-Bearing Pay Zone in Asphalt Ridge Sandstone

Bakersfield, CA, June 11, 2024 (GLOBE NEWSWIRE) -- Trio Petroleum Corp (NYSE American: "TPET", "Trio" or the "Company"), a California-based oil and gas company, today provided updates on its recently completed drilling activities in Uintah County, Utah. The Company has successfully drilled its first two exploratory wells, the HSO 8-4 and HSO 2-4. The HSO 8-4 was drilled to a total depth of 1,020', while the HSO 2-4 was drilled to a depth of 1,390'. The wells encountered substantial oil-bearing pay zones in the Rimrock and Asphalt Ridge Sandstones, over 100' of oil-pay in the Rimrock Sandstone in the HSO 8-4 well and over 190' combined in the Rimrock and Asphhalt Ridge Sandstones in the HSO 2-4 well.

A downhole-heater was installed in the HSO 2-4 well the heating process began on June 3, 2024, with production expected to begin later this week. The HSO 8-4 is currently waiting for a second downhole-heater to be delivered and is expected to be installed on or before June 15, 2024.

"This is a very positive next step for our Company," commented Michael Peterson, CEO of Trio. "The geological data prior to drilling were very positive, and the drilling results are confirming our favorable view of this project. Our expectation for these two wells, and this field, were extremely high based on the data we previously studied. The new cores of the tar sand show very high oil saturation and oil drips from the core when heat is applied, and the bitumen and sand separate within minutes when the core is placed in boiling water. This is very encouraging as we will be heating the wells to temperatures much higher than the boiling point of water with downhole-heaters and/or by injecting steam. We are additionally encouraged to see that the well logs, the core samples which show very high oil saturation, and all other empirical evidence from drilling these two exploratory wells substantiated our hopes and expectations."

"Based on this new data, we believe the economic impact of our ownership interest in the Asphalt Ridge project has the potential to quickly exceed that of our substantial assets in California. The data support the expectation that the wells will be highly economic with stable long-lived production value, if our production and resource estimates prove to be accurate. At this point, we are working to complete the remaining steps required to bring these wells into production and evaluate the next steps in our development plan at Asphalt Ridge," concluded Mr. Peterson.

The production profile of a typical project well has been extensively modeled, and it currently projects an estimated 40% oil recovery and an estimated ultimate recovery ("EUR") of 300,000 barrels of oil per well with a production rate of approximately 40 barrels of oil per day per well. With an expected total drilling and completion cost of less than $500,000 per well, our initial drilling results appear to validate the well economics previously projected. With this data, the Company intends to exercise its rights to acquire the remaining 17.75% working interest in the initial 960 acres.

Under the current agreement, Trio's operating partner, Lafayette Energy Corp, carries all drilling costs through the first $10 million of capital expenditures. Lafayette Energy Corp, through its operator, Valkor Oil and Gas, is expected to drill the third well as early as late June and intends to drill five additional wells during Q3 2024, subject to rig and services availability.

During the drilling process, the Company was required to gather extensive data for submission to the Utah Division of Oil, Gas and Mining ("OGM"). As part of the drilling process, the Company also cored oil-bearing sandstones, assayed, and subsequently conducted core analysis. All of these data are being submitted to the OGM as part of the overall unitization of the project. Once that process is complete, the Company will be permitted to scale its drilling program, with the ability to drill wells on as little as 1.5 acre spacing. On the initial 960 acres, the current development plan is to drill approximately 476 wells. There is an opportunity to expand Trio's participation in the project by an additional 1,920 acres thereafter.

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, and Uintah County, Utah. In Monterey County, Trio owns 85.75% working interest in 9,245 acres at the Presidents and Humpback oilfields in the South Salinas Project, and 21.92% working interest in 800 acres in the McCool Ranch Field. In Uintah County, Trio owns 2.25% working interest in 960 acres and options to acquire up to 20% working interest in the 960 acres, in an adjacent 1,920 acres, and in the greater 30,000 acres of the Asphalt Ridge Project.

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, 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

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Image for Press Release 1914024

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