CALGARY, May 10 /CNW/ - TriOil Resources Ltd. ("TriOil" or the "Corporation" - TSXV:TOL) is pleased to announce production results from its first horizontal well (0.3 net) drilled into the Three Forks Sanish formation at Tableland, south east Saskatchewan.
The well achieved an average production rate of 186 barrels per day (56 bbls/d net) of light, sweet crude oil over the first 30 producing days with a 65% water cut at the end of the period. The 1,500 meter horizontal leg was fracture stimulated in 27 stages using 10 tonnes of ceramic proppant in each stage.
In addition, TriOil has 30% working interest in 3 other horizontal Three Forks Sanish wells currently at completion or early production phases. Each of these wells has been fracture stimulated with 10 tonnes of ceramic proppant in each of the 22 to 26 stages. A fifth well (0.3 net) is currently being drilled, and 2 additional wells (0.6 net) are licensed and planned for the second quarter. Plans are underway for up to an additional 10 horizontal wells targeting the Three Forks Sanish for the second half of the year. Preliminary plans are also being drafted for an oil battery and water disposal facilities.
Further, a horizontal Middle Bakken well (0.3 net) was drilled in January 2010 and a multi-stage fracture stimulation completion is planned for later in May.
At Tableland, TriOil has working interests of 30% and 50% in 59 contiguous gross sections (23.7 net) of undeveloped land that is prospective for both the Three Forks Sanish and Middle Bakken reservoirs. Adjacent to the working interest lands, an option to farm in on an additional 18.5 contiguous gross sections of undeveloped land, paying 50% of costs with payout to earn a 30% working interest in 8 sections per well, has been secured.
TriOil is a publicly traded junior oil resource player in Western Canada. Substantial land positions have been acquired on early stage light oil resource opportunities to capitalize on improvements in horizontal drilling and multi-stage fracture stimulation technologies, specifically targeting opportunities in the emerging Cardium, Pekisko and Charlie Lake oil trends in Alberta and the Three Forks Sanish and Middle Bakken oil trends in south east Saskatchewan.
TriOil trades on the TSX Venture Stock Exchange under the symbol "TOL". At May 10, 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, 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: (i) 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, the performance of new wells, prevailing commodity price 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.
References in this news release to average production rates over the first 30 days of production 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. While encouraging, readers are cautioned not to place reliance on such rates in calculating the future aggregate production for the Company.
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