CALGARY, Nov. 4, 2013 /CNW/ - (TSXV:TOL) TriOil Resources Ltd. ("TriOil" or the "Company") is pleased to provide
an operations update on the Company's Montney, Cardium and Dunvegan
TriOil recently completed and brought on production its second
horizontal Montney well. Over its initial 5 days of production, this
well has produced at an average rate of approximately 950 BOE/d (51
percent NGLs) TriOil owns a 61% working interest in this well and plans
to drill 2 to 3 follow up wells in the first half of 2014.
Current corporate production from the Company's Montney project is
approximately 1,150 BOE/d (30% NGLs).
TriOil drilled its first long-reach horizontal Cardium well on the
Western Lochend trend in late 2012. The well was drilled to a total
depth of 5,402 metres with a horizontal length of 2,867 metres and was
completed with a 40 stage slickwater fracture stimulation. The well
averaged 336 BOE/d (89% oil) in its initial 30 calendar days of
production and has exhibited lower declines than our typical 1 mile
horizontal Lochend Cardium wells. After 8 months of production the well
is currently producing approximately 240 BOE/d (80% oil).
The Company brought its second long-reach horizontal Cardium well in
Western Lochend on production in October, 2013. This well was drilled
to a total depth of 5,407 metres with a horizontal length of 2,858
metres and was completed with a 36 stage slickwater fracture
stimulation. Over its initial 30 calendar days of production the well
averaged 587 BOE/d (79% oil).
TriOil recently drilled a third long-reach horizontal Cardium well in
Western Lochend to a total depth of 5,301 metres with a horizontal
length of 2,867 metres and completed the well with a 36 stage
slickwater fracture stimulation. The well is currently being flow
tested and we expect that it will be equipped and on production in
TriOil owns a 50 percent working interest in each of these long-reach
horizontal Cardium oil wells and has a large development drilling
inventory offsetting these wells.
In Central Lochend, TriOil recently drilled 1 (0.5 net) Cardium
horizontal well and is currently drilling a second (0.5 net) Cardium
horizontal well from the same pad. Both wells are expected to be
completed with 18-20 stage slickwater fractures stimulations in
November and brought on production in December, 2013.
TriOil is currently drilling a 100% working interest horizontal Cardium
well on its Western Lochend acreage. Completion operations on this well
are planned for December, 2013.
Current corporate production from the Company's Cardium project is
approximately 1,050 BOE/d (67% oil and NGLs).
TriOil recently completed and brought on production 2 (1.36 net)
horizontal Dunvegan light oil wells at Kaybob. The 2 wells have
produced at a combined average rate of approximately 1,200 BOE/d (88%
oil) over their initial 18 days of production.
Current corporate production from the Company's Dunvegan project is
approximately 2,100 BOE/d (74% oil).
Based on field estimates, the Company's average October production was
approximately 4,100 BOE/d (62% oil and NGLs) and current production
exceeds 4,500 BOE/d (62% oil and NGLs). TriOil remains on track to meet
or exceed its 2013 exit production guidance of 4,400 BOE/d.
Upcoming Shareholders Meeting
As announced on September 16, 2013, the Company entered into an
agreement (the "Arrangement Agreement") with ORLEN Upstream s.p. z.o.o. ("Orlen Upstream") pursuant to which Orlen Upstream, through a wholly owned subsidiary
Orlen Upstream International BV ("Orlen Upstream International"), agreed to purchase all of the issued and outstanding class A common
shares or the Company (the "Common Shares") at a cash price of CAN $2.85 per Common Share. The transaction is to
be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). The Arrangement is subject to customary conditions for a
transaction of this nature, which include Court approvals, the approval
of 66 2/3 percent of TriOil shareholders represented in person or by
proxy at the special meeting of shareholders of TriOil to consider the
Arrangement and a "majority minority approval" after excluding votes
cast in respect of Common Shares held by certain directors and officers
of the Company.
The special meeting of the holders of Common Shares is scheduled for
Tuesday, November 12, 2013 at 9:30 a.m. (Calgary time) at the John
Laurie Room of the Bow Valley Club, 250 - 6th Avenue SW, Calgary, Alberta. An application to the Court of Queen's
Bench of Alberta (the "Court") is scheduled for 10:00 a.m. (Calgary time) on November 13, 2013 to
consider the fairness of the Arrangement. If approved by shareholders
and the Court and all other conditions to closing are satisfied, the
Arrangement is expected to close shortly thereafter.
TriOil is a Calgary, Alberta based company engaged in the exploration,
development and production of petroleum and natural gas.
TriOil trades on the TSX Venture Exchange under the symbol "TOL". As of
November 1, 2013, there are 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 and information which include, but are not limited to,
expected future drilling and completion plans, expected capital
expenditures, expected production and reserves growth, expectations of
the effect of drilling and completion programs on productivity,
recoveries and costs and the future operations of TriOil, the timing
and anticipated receipt of required regulatory, court, and shareholder
approvals for the Arrangement; and the anticipated timing of the
closing of the Arrangement.
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,
the failure to satisfy the conditions to closing the Arrangement, 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.
Risks and uncertainties inherent in the nature of the Arrangement
include the failure of TriOil or ORLEN Upstream to obtain necessary
securityholder, regulatory, court and other third party approvals, or
to otherwise satisfy the conditions to the Arrangement, in a timely
manner, or at all. Failure to so obtain such approvals, or the failure
of TriOil or ORLEN Upstream to otherwise satisfy the conditions to the
Arrangement, may result in the Arrangement not being completed on the
proposed terms, or at all. In addition, the failure of TriOil to comply
with certain terms of the Arrangement Agreement may result in TriOil
being required to pay a non-completion fee to ORLEN Upstream
International, the result of which could have a material adverse effect
on TriOil's financial position and results of operations and its
ability to fund growth prospects and current operations.
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.
Any references in this news release to test rates or initial production
rates ("IP"), including IP rates of 30 days or less, are useful in
confirming the presence of hydrocarbons, however, such rates are not
necessarily indicative of long-term performance or ultimate recovery
and 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.
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