CALGARY, Sept. 19, 2011 /CNW/ - TriOil Resources Ltd. ("TriOil" or the
"Company" - TSXV:TOL) is pleased to provide an operational update on
the Company's light oil project in the Cardium at Lochend and announces
Executive Management and Board of Directors changes.
Lochend Cardium Operational Update
The fourth horizontal well in our 2011 program (TOL 30%, TOL operated),
previously announced with an IP30 of 323 boe/d, is still producing well
above our type curve for the area.
The fifth Cardium horizontal well in our 2011 program (TOL 100%; TOL
operated) was successfully completed with a 20 stage slick water
completion and has been placed on production following its mandatory
pressure assessment period. We are encouraged by its early performance
and we look forward to providing an update when additional production
history is obtained.
The sixth Cardium well in our 2011 program (TOL 50%; TOL operated) was
successfully completed with a 13 stage slick water fracture stimulation
in the second week of September, and is currently being equipped for
The seventh Cardium horizontal well in our 2011 program (TOL 50%; TOL
operated) is currently drilling.
TOL successfully executed its first liquid propane gas ("LPG") fracture
stimulation in one of our existing cased vertical wells at Lochend. The
well has recently been equipped and placed on production. Early
production rates are encouraging and we are in the planning stages for
a second LPG fracture stimulation in another one of our 30 vertical
TriOil currently has 4 (2.95 net) operated and 1 (0.2 net) non-operated
wells licensed and ready to drill prior to year end.
Extension of the gas gathering system at Lochend has been completed and
TriOil's wells, as well as third party wells, will be tied in to TOL's
99% owned and operated gas plant.
In addition to the gas gathering pipeline, construction of a joint
industry central oil battery with initial throughput capacity of 2,500
barrels of oil per day will commence shortly, with plans for the
battery to be completed prior to year end 2011.
An industry 3D seismic program, in which TriOil is participating, has
finished field operations, and is currently being processed.
Executive Management Appointment
We are very pleased to announce that Ms. Cheryne Johnson, CA, MPAcc., a founding member of the TriOil management team, has been
appointed Vice President Finance and Chief Financial Officer of the
Ms. Johnson has 11 years of experience in oil and gas industry, capital
markets and public accounting. Ms. Johnson has been VP Finance since
the inception of TriOil and previously held senior financial positions
at Highpine Oil and Gas, Anderson Energy, Tristone Capital, Ketch
Resources Trust and KPMG LLP.
TriOil also announces the resignation of Mr. Fred Woods from the Board
of Directors in order to devote more time to his other business
endeavours. We wish to thank Mr. Woods for his energy, advice and
guidance since the Company's inception.
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. TriOil has successfully executed its business plan and has
positioned the Company for solid growth in production, reserves and
TriOil trades on the TSX Venture Exchange under the symbol "TOL". As of
August 25, 2011, there were approximately 31.5 million shares issued
and outstanding (35.5 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, 2011,
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,
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:
Russell J. Tripp, President & CEO, TriOil Resources Ltd.; Cheryne Johnson, VP Finance & CFO, TriOil Resources Ltd.; Andrew Wiacek, VP Exploration, TriOil Resources Ltd.; Corporate Phone: (403) 265-4115