Trio Petroleum Corp Provides Update on Monterey County Operations - Seite 2

A production rig has been on-site at McCool Ranch to restart oil production, but the commencement of operations was delayed by an atmospheric river of heavy rainfall. Now cleared and field conditions stabilized, operations will commence to restart oil production at the 58X-23 and HH-1-ST2 wells and possibly the 35X-23 well. TPET plans to initially restart each of these wells “cold” (i.e., without steam injection) and when appropriate to transition each well to cyclic-steam operations, also known as “huff and puff”.

The HH-1-ST2 well was initially produced cold for about 380 days in 2012-2013, during which time peak production was about 156 barrels of oil per day (“BOPD”), average production was about 35 BOPD and cumulative production was about 13,147 barrels of oil (“BO”). The 58X-23 well was initially produced cold for about 230 days in 2011-2013, during which time peak production was about 41 BOPD, average production was about 13 BOPD and cumulative production was about 2,918 BO.

After finishing the aforementioned restart operations at McCool Ranch, the production rig will be relocated to restart oil production at the HV-3A well at the Presidents Oilfield at the South Salinas Project. The HV-3A well was initially production-tested for approximately 37 days in 2018-2019, during which time peak production was about 154 BOPD, average production was about 33 BOPD and cumulative production was about 900 BO. After being shut-in for about six weeks in 2018-2019, the well began flowing oil and gas to surface. The HV-3A oil is high-quality, mid-gravity oil (approximately 18.5° to 22.4° API gravity). Operations at HV-3A do not require steam due to favorable viscosity. There are very promising opportunities to significantly increase the aforementioned 33 BOPD rate. For example, by adding up to 650 feet of additional perforations in the oil zone, acidizing the well for borehole cleanup, utilizing another new borehole treatment that is under review, as well as other methods and operations under consideration, we believe production can be significantly increased over the previous levels.

TPET for the time-being has shifted the focus of its operations at Presidents Oilfield from the HV-1 well to the HV-3A well, as discussed above. The HV-1 well found oil in the Yellow, Brown and Mid-Monterey Clay zones, however, TPET to-date has been unable to establish commercial oil production due to the water produced at HV-1 and the well is currently idle. Next steps at the HV-1 are currently under review, including possibly deepening it to targets identified in 3D seismic in the Green Chert and Blue Chert zones of the Monterey Formation and in the underlying Vaqueros Sand, or sidetracking the well to a location that might have fewer fractures and faults and thus an improved oil-water ratio. Though the well was idled, KLSP, as reported in the recently filed annual report, believes the new technical data received as a result of drilling the HV-1 in regards to the Mid-Monterey Clay and the Yellow Zone may positively impact the Company’s estimated reserves.