TriOil Resources increases production by 80 percent year over year to hit exit target and provides operational update
CALGARY, Jan. 13, 2013 /CNW/ - TriOil Resources Ltd. ("TriOil" or the "Company" - TSXV:TOL) is pleased to announce that its year-end exit production exceeded 3,450 boe/d (70% oil and liquids) based on field estimates, in line with its 3,400-3,600 boepd guidance. We achieved strong production growth in 2012, entirely through the drill bit, with corporate production up 80% from our 1,900 boepd 2011 exit production rate. Current production exceeds 3,600 boepd (70% oil and liquids) based on field estimates and our 2013 light oil development programs at Lochend and Kaybob are off to active and encouraging starts to the year. We are planning to provide details of our 2013 capital plan and guidance together with a detailed operational overview in early February, 2013. In the interim, we are pleased to provide the following operations update.
TriOil has established strong operational positions in two top-tier light oil resource projects at Lochend and Kaybob. Both projects are delivering strong netbacks and solid capital efficiencies and provide TriOil with repeatable, scalable light oil development growth potential for the next several years.
At Lochend, TriOil now has 13 (6.44 net) producing Cardium horizontal wells in Central/West Lochend with an average IP30 of 331 boe/d (82% oil and liquids) and 6 (4.0 net) producing wells in East Lochend with an average IP30 of 180 boe/d (90% oil and liquids). We drilled 11 (6.25 net) Cardium horizontal wells at Lochend in 2012 and our 2013 development program is underway with 2 (1.0 net) Cardium horizontal wells currently drilling in Central/West Lochend. TriOil owns 96 (70 net) sections at Lochend and our de-risked Cardium light oil drilling inventory currently stands at 97 net horizontal locations.
Our Kaybob/Bigstone Dunvegan light oil project has grown very rapidly in the past year. TriOil drilled 16 (11.1 net) horizontal wells at Kaybob in 2012 and currently has 14 (8.9 net) wells with an average IP30 of 322 boe/d (85% oil and liquids). At Bigstone, TriOil drilled 3 (0.75 net) horizontal wells in 2012 with an average IP30 of 290 boe/d (55% oil and liquids). We are currently drilling 1 (1.0 net) horizontal well at Kaybob and are planning an active development drilling program at Kaybob in 2013. Our current de-risked Dunvegan light oil drilling inventory currently stands at 30 net horizontal locations.
An updated presentation has been posted on the Company's website at www.trioilresources.com. The corporate presentation will be located under the Investor Information - Presentations page of the website.
TriOil is a Calgary, Alberta based company engaged in the exploration, development and production of petroleum and natural gas. TriOil has approximately 64.0 million common shares issued and outstanding (70.1 million fully diluted). The common shares of TriOil trade on the TSX Venture Exchange under the symbol TOL.
Forward Looking Statements
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "believe", "plans", "intends", "confident", "may", "objective", "ongoing", "will", "should", "project", and similar expressions are intended to identify forward-looking information. More particularly, this document contains forward looking statements which include, but are not limited to, expected future drilling and completion plans, expected production and reserves growth, expectations about the Company's 2012 capital program and the future operations of TriOil and timing for providing 2013 guidance, capital plans and a detailed operational review.
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by TriOil, including with respect to the anticipated exploration and development opportunities and the outlook for the fiscal year ending December 31, 2012, expectations and assumptions concerning the success of future exploration and development activities, production guidance, the performance of new wells, prevailing commodity prices and the availability of additional capital if and when required by the Corporation.
Any references in this news release to initial 30 day production rates ("IP30) are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Additional details of the performance of the wells can be found in the corporate presentation on the Company's website at www.trioilresources.com.
Although TriOil believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because TriOil can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in TriOil's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com and TriOil's other public disclosure documents which have been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof and TriOil undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Meaning of BOE
Disclosure provided herein in respect of barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6Mcf:1Bbl, utilizing a conversion on a 6Mcf:1Bbl basis may be misleading as an indication of value.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE: TriOil Resources Ltd.For further information:
Russell J. Tripp, President & CEO, TriOil Resources Ltd.; Cheryne Lowe, VP Finance & CFO, TriOil Resources Ltd.; Andrew Wiacek, VP Exploration, TriOil Resources Ltd.; Corporate Phone: (403) 265-4115