CALGARY,
June 25, 2013 /CNW/ - TriOil
Resources Ltd. ("TriOil" or the "Company") - TSXV:TOL) is pleased
to provide the following update.
Operational 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.