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 reserve growth.
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