TriOil announces first quarter 2010 operational and financial results and
2010 guidance

CALGARY, May 27 /CNW/ - TriOil Resources Ltd. ("TriOil" or the "Corporation" - TSXV:TOL) is pleased to announce that it has filed its unaudited financial statements and related Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2010 on SEDAR. Selected financial and operational information is outlined below and should be read in conjunction with TriOil's unaudited financial statements and related MD&A, which are available for review at www.trioilresources.com and www.sedar.com.

TriOil has embarked on a growth strategy focused on assembling a portfolio of light oil resource plays in Alberta and Saskatchewan through a combination of corporate and asset acquisitions, land sales and freehold leasing. This strategy has resulted in significant land positions being assembled on emerging light oil resource plays at Tableland in Southeast Saskatchewan, and Lochend and Queenstown in Southern Alberta. To date, drilling results on these plays is positioning TriOil for significant growth potential in production, reserves and shareholder value in 2010 and beyond.

Q1 2010 Highlights:

    
    -   On January 13, 2010, a new management team, led by Russell J. Tripp
        as President and CEO, completed the recapitalization of One
        Exploration Inc., which included a $10 million private placement and
        the acquisition of private TriOil.
    -   Completed a private placement of 100,000,000 special warrants at a
        price of $0.25 per special warrant for aggregate gross proceeds of
        $25 million on February 11, 2010.
    -   Participated in the drilling of 4 gross (1.2 net) horizontal oil
        wells at Tableland in Southeast Saskatchewan, and 1 gross (0.4 net)
        horizontal oil well at Queenstown in Southern Alberta.
    -   Acquired approximately 18 net sections of undeveloped acreage on the
        Cardium trend at Lochend in Southern Alberta for total costs of
        approximately $6.1 million through a combination of crown land sales,
        freehold leasing and asset acquisitions.
    -   Increased average production by 27% to 426 boe/d in the first quarter
        of 2010 from 334 boe/d in the fourth quarter of 2010.
    -   Increased oil weighting to 48% in the first quarter of 2010 from 38%
        in the fourth quarter of 2009 and 20% in the first quarter of 2009,
        which contributed to higher netbacks. This trend is expected to
        continue as capital spending continues to be allocated to oil
        prospects.
    -   Implemented a number of initiatives to reduce operating costs. These
        initiatives, along with increased production through acquisitions and
        the drilling program, are expected to reduce operating expenses
        substantially through the balance of the year.
    

Subsequent to Q1 2010:

    
    -   On April 1, 2010, the Corporation changed its name to "TriOil
        Resources Ltd." and affected a 20:1 consolidation of the outstanding
        class A shares (the "Class A Shares"). On April 7, 2010, the Class A
        Shares began trading on a post-consolidation basis under the new
        corporate name of TriOil Resources Ltd. and under the new stock
        symbol "TOL" on the TSX Venture Exchange.
    -   On April 12, 2010, the Corporation closed a previously announced
        arrangement with Canext Energy Ltd. ("Canext") pursuant to which the
        Corporation agreed to acquire all of the outstanding common shares of
        Canext (the "Canext Shares") for 2.0 Class A Shares of TriOil (0.1
        Class A Shares on a post-consolidation basis) for each Canext Share
        held.
    -   On April 13, 2010, the Corporation increased its credit facility to
        $25 million with a Canadian Chartered Bank.
    -   On April 30, 2010, the Corporation closed a previously announced
        asset acquisition of 17 net (35 gross) sections of undeveloped land
        in the Lochend area of Alberta and approximately 50 boe/d of
        production for a cash purchase price of $7.5 million and 1,312,566
        Class A Shares on a post consolidation basis for total consideration
        of $15 million.
    

Operations Overview

TriOil participated in the drilling of 5 (1.6 net) horizontal oil wells in the first quarter of 2010, with all 5 wells cased for production. Significant capital and effort has also been directed towards increasing the Corporation's undeveloped land positions, primarily at Lochend, Alberta.

Tableland

    
    -   Drilled 3 (0.9 net) horizontal oil wells targeting the Sanish Three
        Forks formation
        -  As previously announced, the first Sanish Three Forks well at
           Tableland achieved a 30 day average production rate of 186 bbls/d
           (56 bbls/d net to TriOil), which is a higher rate than the type
           well used in the Corporation's economic evaluation
        -  The 2 (0.6 net) additional wells drilled in the first quarter have
           recently been brought on production
        -  2 (0.6 net) horizontal wells have been drilled in the second
           quarter, with one well recently put on production, and the second
           well awaiting completion
        -  3 (0.9 net) horizontal wells are licensed and will be drilled
           prior to the end of the second quarter
    -   Drilled 1 (0.3 net) horizontal well targeting the Bakken formation,
        which has been fracture stimulated over 18 stages and is currently
        flowing back load fluid

    Queenstown

    -   Drilled 1 (0.4 net) horizontal well targeting a light oil play in the
        Pekisko formation
        -  Completed an eight stage acid frac and the well is currently being
           evaluated

    Lochend

    -   The Corporation has been actively increasing its undeveloped land
        base targeting the Cardium formation
        -  Currently operate 57 gross (42 net) sections of land
        -  Planning to spud the first horizontal well in August
    

2010 Budget and Guidance

TriOil's board of directors has approved a capital program for 2010 of approximately $39 million, excluding acquisitions, with $10 million having been spent in the first quarter of 2010. Current production is approximately 1,450 boe/d and with the capital program, production is expected to exit 2010 at approximately 2,100 boe/d, with oil and liquids accounting for over 60% of exit volumes. The Corporation will continue to monitor commodity prices and will adjust its capital spending to maintain a strong balance sheet.

The approved capital budget includes the drilling of 14 (5.4 net) horizontal oil wells, of which 5 (1.6 net) were drilled in the first quarter of 2010. The remaining activity for the balance of the year will be focused primarily on the Sanish and Bakken oil plays at Tableland, Southeast Saskatchewan, and the Cardium trend at Lochend, Alberta. The drilling program this year is intended to delineate a large portion of the Corporation's land base. This will potentially result in a number of horizontal oil development drilling locations and a multi-year drilling inventory.

No capital has been budgeted for additional acquisitions for the remainder of the year. However, opportunities to expand existing core areas and develop new ones are continuously being evaluated.

    
    Financial and Operating Results
    -------------------------------------------------------------------------
                                                 Three months ended March 31,
    -------------------------------------------------------------------------
                                          2010           2009       % Change
    -------------------------------------------------------------------------
    ($, except share numbers)

    Financial
    Total revenue                    1,971,485      2,125,210             (7)
    Funds used in operations(1)       (756,426)      (394,119)            92
      Per share - diluted                    -          (0.01)          (100)
    Net loss                        (2,003,839)    (1,623,455)            23
      Per share - basic and diluted      (0.01)         (0.03)           (67)
    Working capital (net debt)      17,032,409     (6,257,593)          (372)
    Total assets                    74,638,158     50,802,090             47
    Capital expenditures(2)          9,941,786      2,005,084            396
    Weighted average shares
     outstanding
    Basic                          174,029,315     57,087,293            205
    Diluted                        183,899,863     57,147,718            222
    -------------------------------------------------------------------------
    Operating
    Average daily production
    Crude oil and NGLs (bbls/d)            204            141             45
    Natural gas (mcf/d)                  1,333          3,475            (62)
    -------------------------------------------------------------------------
    Total (boe/d)                          426            720            (41)
    -------------------------------------------------------------------------
    Average selling prices
    Crude oil and NGLs ($/bbl)           71.91          40.95             76
    Natural gas ($/mcf)                   5.40           5.10              6
    -------------------------------------------------------------------------
    Total ($/boe)                        51.34          33.19             55
    -------------------------------------------------------------------------
    Wells drilled - gross (net)
    Exploration                          2(0.6)         2(1.0)             -
    Development                          3(1.0)             -              -
    -------------------------------------------------------------------------
    Total                                5(1.6)         2(1.0)             -
    Drilling success rate (%)               80             50              -
    -------------------------------------------------------------------------
    Operating netback ($/boe)
    Oil and natural gas sales            51.34          33.19             55
    Royalties                            (3.98)         (5.95)           (33)
    Lease operating & transportation
     expenses                           (33.02)        (21.66)            52
    -------------------------------------------------------------------------
    Operating netback                    14.34           5.58            157
    -------------------------------------------------------------------------
    

Notes:

(1) Funds used in operations is calculated as cash flow from operating activities before the change in non-cash working capital and abandonment expenditures.

(2) Capital expenditures include property acquisitions and are presented net of proceeds of disposals, but exclude corporate acquisitions.

(3) On April 7, 2010, the Corporation affected a 20:1 consolidation on its outstanding Class A Shares.

TriOil trades on the TSX Venture Exchange under the symbol "TOL". As of May 27, 2010, there were approximately 22.2 million shares issued and outstanding (23.7 million fully diluted).

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", "should" 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 and the future operations of TriOil.

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, 2010, 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.

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, the failure to satisfy the conditions to closing the transaction, 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

The term "boe" may be misleading, particularly if used in isolation. A boe conversion 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.

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: For further information: Russell J. Tripp, President & CEO, TriOil Resources Ltd., Phone: (403) 265-4115

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