CALGARY, Dec. 13 /CNW/ - TriOil Resources Ltd. ("TriOil" or the
"Company") (TSXV:TOL) is pleased to provide an operations update on its
Cardium horizontal drilling program at Lochend, Alberta and an overview
of the upcoming Lochend winter drilling program.
The Cardium A trend at Lochend is an early stage Cardium light oil
resource play with approximately 16 horizontal wells drilled to date by
industry. TriOil is in the early stages of a drilling program to
validate the commerciality of this resource play on our substantial
land position utilizing leading edge horizontal drilling and completion
techniques. This includes the determination and selection of the
optimal location, the length and orientation of the horizontal section
of the wells, and the size, number of stages and type of fluid used in
the completion. Although still early in the development of the play, we
are encouraged by the positive results to date and look forward to
updating further as our program progresses. TriOil currently owns 80
gross (56 net) sections of high working interest, majority operated
Cardium lands, with an inventory of over 150 net drilling locations in
the Lochend area of Alberta.
TriOil has participated in 7 (3.55 net) horizontal Cardium wells, of
which 1 (1.0 net) was operated by TriOil and the balance were
non-operated, partnered with a number of recognized Cardium producers.
Three wells are in the early stages of production and the remaining
wells are in various stages of drilling and completion. TriOil's first
operated horizontal Cardium well at Lochend (100% working interest) has
been drilled and is expected to be completed by early January. These
wells have drilled horizontal sections with 1000-1400m of Cardium
reservoir, with substantial gas shows and oil staining.
The Cardium A horizontal well at 13-32-27-03 W5M (TriOil 20 percent
non-operated) has been on production for 3 months and continues to
produce at expected rates with a 30 day average rate of 180 bbls/d plus
149 mcfpd of gas, a 60 day average rate of 132 bbls/d plus 144 mcfpd of
gas and a 90 day average rate of 117 bbls/d plus 143 mcfpd of gas. The
associated natural gas is not currently being captured but is expected
to be tied-in to TriOil's Lochend gas processing facility early in
The Cardium A horizontal well at 1-36-26-4 W5M (TriOil 60 percent
non-operated) was completed with a multi-stage oil frac and equipped
for production. The well recovered 100 percent of its load fluid over
the past month producing at an unstabilized average rate of 118 bbls/d
plus 43 mcfpd of gas. The operator is currently reconfiguring the
downhole pump assembly to optimize production. We are very encouraged
by this early stage result as the 1-36 well pushes the productive
Cardium A oil trend to the west where TriOil owns over 20 net sections
The Cardium A horizontal well at 3-26-26-3 W5M (TriOil 55 percent
non-operated) was completed with a multi-stage oil frac and equipped
for production. The well is producing back its load fluid and we will
assess the potential productivity of the well once the load fluid is
fully recovered. The 3-26 well directly offsets a successful competitor
horizontal Cardium well at 1-22-26-3 W5M.
The Cardium A horizontal well at 1-10-27-3 W5M (TriOil 30 percent
non-operated) has been completed with a multi-stage oil frac and
equipped for production. The well is in the early stages of recovering
its load fluid.
The horizontal well at 13-1-27-3 W5M (TriOil 50 percent non-operated)
has been drilled and completed with a multi-stage oil frac in the
Cardium B zone. This is the first horizontal well drilled in the lower
Cardium B pool in the Lochend area. The operator is currently equipping
this well for production.
TriOil's first operated Cardium A horizontal well at 15-34-28-4 W5M
(TriOil 100 percent) has been drilled and is scheduled for a
multi-stage energized (nitrogen) oil frac in mid December. Energized
oil fracs have been successfully employed in the Garrington Cardium A
pool and recently by a junior producer in the Lochend Cardium A trend.
The Cardium A horizontal well at 4-11-27-3 W5M (TriOil 40 percent
non-operated) is currently drilling. The operator is planning a slick
water completion in the 4-11 horizontal well.
With this program we have gained considerable experience in Cardium
horizontal drilling, completion and production techniques, similar to
other producers in the Cardium fairway. TriOil's next two completion
operations will utilize more advanced energized oil and slick water
multi-stage completions which are expected to further optimize costs
and results. As with other more mature Cardium horizontal light oil
plays, we expect continued evolution and refinement in these techniques
as the Lochend Cardium trend develops.
Development along the Lochend Cardium trend will require gas
conservation of the solution gas and TriOil is strategically positioned
with 99 percent ownership and operatorship of our Lochend Gas Plant.
TriOil is in the process of installing additional compression at its 99
percent owned Lochend Gas Plant which will expand and restore the plant
to its 5 mmcfpd capacity. TriOil, with other area operators, is also
in the planning stages of an expansion of the gathering system along
the trend for existing and future horizontal wells.
We continue to be excited about the Cardium potential at Lochend. We
look forward to operating an active Cardium horizontal drilling program
in 2011 and expect to participate with other area operators in
additional joint Cardium horizontal drilling locations. TriOil has
contracted a drilling rig for its 2011 Lochend drilling program and is
currently in the process of acquiring a number of multi-well pad
horizontal surface locations.
As indicated in our November 25, 2010 press release, TriOil plans to
provide details of its 2011 capital program and guidance in late
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 oil trends
in Alberta and the Bakken and Sanish oil trends in southeast
Saskatchewan. TriOil has successfully executed its business plan thus
far, rapidly growing its production, reserves and undeveloped land base
through 2010 to position the Corporation for substantial future
increases in production, reserves and shareholder value through
exposure in these high quality resource plays.
TriOil trades on the TSX Venture Exchange under the symbol "TOL". As of
December 10, 2010, there were approximately 31.3 million shares issued
and outstanding (34.6 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", 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
Any references in this news release to initial and/or final raw test or
production rates and/or "flush" production rates or 30, 60 and 90 day
production rates 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.
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
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