Trio Petroleum plans to increase production, cash flows in Q4

Trio Petroleum (TPET) provided an operational update on each of its current oil and gas assets, by field. Lloydminster, Saskatchewan: Production has stabilized between 60 and 70 BOPD at the recently acquired fields from Novacor. Wells produce heavy crude oil with low operational costs from the McLaren/Sparky and Lloydminster formation and is home to some of the largest players in the industry such as Cenovus Energy, Canadian Natural Resources, Baytex Energy, and Rife Resources. Potential for four additional re-entry wells and two fully equipped locations to be reactivated each capable of an additional 70 barrels in total per day. Novacor Exploration has identified further potential upside through multi-lateral drill opportunities. The multilateral drill opportunity is in section 19-47-26w3 owned by Trio and is capable of 200 to 300bpd per Doug Forrest, president of Novacor. The Company is currently reviewing accretive opportunities in the area which can generate immediate cash flow. Presidents Field, South Salinas Project, Monterey, California: California Geologic Energy Management Division’s review of our Bradley Water Disposal Project Application has been given a higher priority. The objective is to obtain approval to utilize the Bradley minerals 1-2 well for the disposal of produced water which, we believe, would result in reduced water disposal costs from approximately $10/barrel to less than $1/barrel once the field is in production. South Salinas Project has the potential to be significant, with, an estimated 40 million barrels of oil plus 42 billion cubic feet of gas, or 47 million barrels of oil equivalent in Probable. Undeveloped reserves and an approximate 101 million barrels of oil plus 169 billion cubic feet of gas, or 129 million barrels of oil equivalent in Possible Undeveloped reserves. Trio’s Total Probable undiscounted net cash flow is an estimated approximate $2.1 billion, and Trio’s Total Possible undiscounted net cash flow is an estimated approximate $7.9 billion. Due to the size and cost of developing this project, Trio is talking to potential joint venture partners PR Spring, Uintah, Utah: Testing continues with downhole heaters to be followed by chemical squeeze at nearby Asphalt Ridge’s two test wells to determine the most economical oil extraction process. Asphalt Ridge is located in the same Uintah Basin as PR Spring with similar geology and formations. PR Spring is known to be located in one of the largest tar-sand deposits in North America outside of Canada, and establishing first-oil at this project is of utmost significance to the Company. Trio has an option to acquire 2000 acres. Contains an estimated 6.75 billion barrels or OOIP within the Uintah basin boundary. Ultimate recovery of 300,000 barrels of oil per well. 2000 acre parcel will support up to 1000 wells. Potential to provide upwards of 50,000 barrels a day when fully developed with approximate 20-year life. Initial total drilling and completion cost of less than $800,000 per well and declining with scale. Trio’s obligation is subject to the two test wells previously drilled at Asphalt Ridge producing 80 BOPD combined for 30 consecutive days.