Trio Petroleum Corp. tests California discovery well, finds “highly encouraging” results
(WO) – Trio Petroleum Corp., a California-based oil and gas company, today announced that the first test interval (a stratigraphic subzone of the Mid-Monterey Clay Member of the Monterey Formation) that is being production-tested at the HV-1 discovery well of the South Salinas Project has tested at rates up to approximately 125 bopd with associated natural gas and water. These initial test results are preliminary and are based on swabbing operations that may not be definitive. Swabbing operations of the first test interval are scheduled through the end of this week to obtain additional data. The company then plans to conduct testing operations on additional zones which are believed to be even more prospective.
HV-1 discovery well production test update. On July 15-16, the HV-1 well was perforated at a measured depth of 6,379-6,560 ft (181 gross ft) in the Mid-Monterey Clay Member and acidized for borehole-cleanup. Nine days of swabbing operations carried-out since that time show improving results and currently indicate that the first test interval may be capable of producing approximately 500 bbl of fluid per day, with approximately 25% oil cut (i.e., 125 bopd) and associated gas.
It is important to note that the primary-objective of the HV-1 well is the shallower “Yellow-Brown Zone” of the Monterey Formation, which has not yet been tested in the HV-1 well and which occurs in the HV-1 well at 4,781-5,863 ft (measured depth). The Yellow-Brown Zone was oil and gas productive in the Company’s HV-3A discovery well and is assigned reserves in the company’s Reserve Report, as filed with the SEC, whereas the deeper Mid-Monterey Clay Member that is now being tested (i.e., perforations at 6,379-6,560’) is currently not assigned reserves. Project reserves will increase if economic production is established in the Mid-Monterey Clay in the HV-1 well. Production-testing operations at the appropriate time will move up hole to test the primary-objective Yellow-Brown Zone, which Trio believes looks very promising.
The HV-1 discovery well is the second well drilled to-date in the Presidents oil field of the company’s South Salinas Project, which is located in Monterey County, California.
“The initial findings of the HV-1 well are highly encouraging, with improving overall production rates and increasing oil cuts. Despite not initially assigning reserves to the Mid-Monterey Clay interval, our testing shows great promise. This interval is about 2,000 feet thick, and currently, we are only testing a small portion of it. The Mid-Monterey Clay interval was on our radar as a potential producing zone due to good oil indications in our HV-3A discovery well and other nearby wells.” said CEO Frank Ingriselli.
“While we eagerly anticipate additional results from the ongoing testing of both the Mid-Monterey Clay and the shallower zones, particularly the Yellow-Brown Zone, we are delighted with the invaluable insights they are providing. These insights will play a pivotal role in shaping our development plan, which has already been disclosed to hold a discounted potential of approximately $2 billion in net cash flow. This potential production asset could lead to cash flowing operations in the third quarter.”