CALGARY, June 25, 2013 /CNW/ - TriOil Resources Ltd. ("TriOil" or the
"Company") - TSXV:TOL) is pleased to provide the following update.
TriOil owns strong operational positions in three top-tier light oil and
liquids rich natural gas projects - a Cardium light oil resource play
at Lochend, a Dunvegan light oil play at Kaybob and a Montney liquids
rich natural gas resource play at Pouce Coupe. All three projects have
proven successful and the Company has an identified development
drilling inventory of 178 net horizontal locations projected to provide
several years of efficient, repeatable and scalable production and
We are pleased to report that corporate production for the month of May
exceeded 4,200 boe/d (63 percent oil and NGL's) (based on field
estimates), up from the previously reported 4,000 boe/d field estimates
for April 2013. Corporate production has grown significantly from the
1,992 boe/d, 2,821 boe/d and 3,472 boe/d achieved in Q3 2012, Q4 2012
and Q1 2013 respectively. TriOil remains on track to meet or exceed its
current guidance of 3,900-4,100 boe/d average 2013 production with a
4,400 boe/d 2013 exit target.
Early summer operations have been hampered by excessive rainfall and wet
field conditions. Completion operations are underway at Lochend and
drilling operations are expected to commence in July at Lochend, Kaybob
and Pouce Coupe. The Company plans to execute an active development
program in the second half of 2013 at Lochend, Kaybob and Pouce Coupe.
The Company continues to execute a consistent commodity hedging strategy
to protect its capital program and stabilize corporate cash flow. Our
current hedge position is 1,700 bbls per day hedged at a fixed average
WTI price of CDN$99.23 per bbl to year end 2013, 2,000 GJ per day
hedged at a fixed average price of CDN$3.46 per GJ to year end 2013 and
1,000 bbls per day hedged at a fixed average price WTI price of
CDN$94.89 per bbl for calendar 2014.
Annual and Special Meeting
In light of the annual and special meeting of the shareholders to be
held on Tuesday June 25, 2013, the Company would like to correct
certain information in the information circular and proxy statement
dated May 21, 2013. Based on public filings, the Company is aware of
the following two shareholders who hold, directly or indirectly, ten
percent or more of the Class A Common Shares: (i) Lightstream Resources
Ltd. (formerly PetroBakken Energy Ltd.) reports that it holds
11,050,330 (17.2%) of the Class A Common Shares; and (ii) AGF
Investments Inc. and Acuity Investment Management Inc., report that
together they hold 8,247,288 (12.9%) of the Class A Common Shares.
Strategic Alternatives Process Update
The previously announced strategic alternatives process is in progress.
Further updates in respect of the Company's strategic alternative
process will be made in due course. There can be no assurances or
guarantees that this process will result in an acceptable transaction.
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 and
Dunvegan oil trends in Alberta. TriOil has successfully executed its
business plan and has positioned the Company for solid growth in
production, reserves and shareholder value.
TriOil trades on the TSX Venture Exchange under the symbol "TOL". As of
June 24, 2013, there were approximately 64.0 million shares issued and
outstanding (70.1 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", "seek", "anticipate",
"continue", "estimate", "approximate", "believe", "plans", "intends",
"confident", "may", "objective", "ongoing", "will", "should",
"project", "predict", "potential", "targeting", "could", "would", 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 and the timing thereof, expected drilling
inventory, expected capital expenditures, expected production and
reserves growth, expectations for 2013 exit production, expectations of
TriOil delivering strong, multi-year per share growth, , expectations
of the effect of drilling and completion programs on productivity
recoveries and costs 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, 2013,
expectations and assumptions concerning the success of future
exploration and development activities, production guidance, the
performance of new wells and drilling and completion programs,
prevailing commodity prices and the availability of additional capital
if and when required by 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. 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 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value. All BOE conversions in this report are derived
from converting gas to oil in the ratio of six thousand cubic feet of
gas to one barrel of oil.
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