TriOil Resources increases production by 80 percent year over year
to hit exit target and provides operational update
CALGARY,
Jan. 13, 2013 /CNW/ - TriOil
Resources Ltd. ("TriOil" or the "Company" - TSXV:TOL) is pleased to
announce that its year-end exit production exceeded 3,450 boe/d
(70% oil and liquids) based on field estimates, in line with its
3,400-3,600 boepd guidance. We achieved strong production growth in
2012, entirely through the drill bit, with corporate production up
80% from our 1,900 boepd 2011 exit production rate. Current
production exceeds 3,600 boepd (70% oil and liquids) based on field
estimates and our 2013 light oil development programs at Lochend
and Kaybob are off to active and encouraging starts to the year. We
are planning to provide details of our 2013 capital plan and
guidance together with a detailed operational overview in early
February, 2013. In the interim, we are pleased to provide the
following operations update.
Operational Update
TriOil has established strong operational
positions in two top-tier light oil resource projects at Lochend
and Kaybob. Both projects are delivering strong netbacks and solid
capital efficiencies and provide TriOil with repeatable, scalable
light oil development growth potential for the next several
years.
At Lochend, TriOil now has 13 (6.44 net)
producing Cardium horizontal wells in Central/West Lochend with an
average IP30 of 331 boe/d (82% oil and liquids) and 6 (4.0 net)
producing wells in East Lochend with an average IP30 of 180 boe/d
(90% oil and liquids). We drilled 11 (6.25 net) Cardium horizontal
wells at Lochend in 2012 and our 2013 development program is
underway with 2 (1.0 net) Cardium horizontal wells currently
drilling in Central/West Lochend. TriOil owns 96 (70 net) sections
at Lochend and our de-risked Cardium light oil drilling inventory
currently stands at 97 net horizontal locations.
Our Kaybob/Bigstone Dunvegan light oil project
has grown very rapidly in the past year. TriOil drilled 16 (11.1
net) horizontal wells at Kaybob in 2012 and currently has 14 (8.9
net) wells with an average IP30 of 322 boe/d (85% oil and liquids).
At Bigstone, TriOil drilled 3 (0.75 net) horizontal wells in 2012
with an average IP30 of 290 boe/d (55% oil and liquids). We are
currently drilling 1 (1.0 net) horizontal well at Kaybob and are
planning an active development drilling program at Kaybob in 2013.
Our current de-risked Dunvegan
light oil drilling inventory currently stands at 30 net horizontal
locations.
An updated presentation has been posted on the Company's website
at www.trioilresources.com. The corporate presentation will be
located under the Investor Information - Presentations page of the
website.
TriOil is a Calgary,
Alberta based company engaged in the exploration,
development and production of petroleum and natural gas. TriOil has
approximately 64.0 million common shares issued and outstanding
(70.1 million fully diluted). The common shares of TriOil trade on
the TSX Venture Exchange under the symbol TOL.
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, expectations about the
Company's 2012 capital program and the future operations of TriOil
and timing for providing 2013 guidance, capital plans and a
detailed operational review.
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, 2012,
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
30 day production rates ("IP30) 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. Additional details of the performance of the wells
can be found in the corporate presentation on the Company's website
at www.trioilresources.com.
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
Disclosure provided herein in respect of barrels
of oil equivalent ("boe") may be misleading, particularly if used
in isolation. A boe conversion ratio 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 6Mcf:1Bbl, utilizing a
conversion on a 6Mcf:1Bbl basis may be misleading as an indication
of value.
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.