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 2011.

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 on trend.

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 January, 2011.

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 Corporation.

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 and TriOil's other public disclosure documents which have been filed on SEDAR and can be accessed at

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.


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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