Trio Petroleum Corp Announces Breakthrough at Asphalt Ridge

Exciting Developments at Asphalt Ridge's HSO 2-4 Well

In a significant milestone for the oil and gas industry, Trio Petroleum Corp (NYSE American: TPET), a California-based oil and gas company, has confirmed the start of oil production from its initial well, HSO 2-4, located at the Asphalt Ridge Project. This project is nestled in Uintah County, Utah, and has made waves due to its innovative use of a downhole heater. The heated bitumen from the pay zone demonstrates a notable decrease in viscosity, allowing the valuable resource to flow smoothly into the wellbore for extraction.

Insights from Trio Petroleum's Leadership

Robin Ross, the CEO of Trio Petroleum, shared his enthusiasm about the Asphalt Ridge Project, highlighting its remarkable significance. This area is known as one of the most extensive tar-sand deposits outside Canada, presenting potential for extensive oil reserves. Expert J. Wallace Gwynn from Energy News estimates that this may house the largest measured tar-sand resource in the United States, a claim that builds confidence in the project's profitability.

According to a study conducted by Dr. Amanda Bustin of Bustin Earth Science Consultants, the HSO 2-4 well is projected to have an estimated ultimate recovery (EUR) of 300,000 barrels of oil, with initial production rates expected to reach around 40 barrels per day. The Asphalt Ridge Project boasts a sizable leasehold of approximately 30,000 acres, which offers the potential for further development with two and a half acre well spacing.

Advancements in Production Techniques

With the recent success of the downhole heater in oil production, Trio is now setting the stage for the installation of a second heater from a different manufacturer. This new system will be tested to explore potential reductions in operating costs. The heater has already been installed and is operational in the HSO 2-4 well, while the first heater is being relocated to well 8-4. Both wells will utilize the same separation equipment, streamlining production.

A third well is anticipated to be drilled by the end of October, with additional plans for five more wells later in the fourth quarter of the year, depending on rig and service availability.

Optimizing The Production Process

In addition to its production capabilities, early indications suggest that the produced oil may contain a higher-gravity component. This oil can be refined on-site, with the potential to produce green diesel by removing 10-15% diesel during the process, which is a compelling prospect. This capability allows Trio to offer both spec commercial grade asphalt binder—expected to secure local premium pricing over WTI—and green diesel, which could command an even higher margin.

Trio Petroleum has proactively sent samples of the produced oil for assay analysis to accurately determine the oil composition. This analysis is critical for designing adequate above-ground facilities responsible for the separation of heavy and lighter oils. Once assay results are received, systems for efficient collection and separation will be tailored to handle the first three seven-well pads, positioning the HSO 2-4 and possibly the 8-4 well for full-scale production.

Future Prospects and Strategic Partnerships

The strategic vision includes designing systems for all seventeen seven-well pads, aimed at achieving production capacity from 21 wells. As each seven-well pad comes online, the infrastructure will be scaled to meet growing production demands.

Lafayette Energy Corp holds the majority working interest in this project, with Heavy Sweet Oil, LLC acting as the operator. They are joined by Valkor Oil and Gas LLC, a company recognized for its expertise in sustainable hydrocarbon projects.

About Trio Petroleum Corp

Trio Petroleum Corp stands as a robust player in oil and gas exploration and development. Founded in Bakersfield, California, the company has its hands in several significant operations, including Monterey County's President and Humpback oilfields, where they have a commanding working interest. They also have options for increased holdings in Uintah County, reflecting their commitment to growth and resource development.

Frequently Asked Questions

What is the significance of the HSO 2-4 well?

The HSO 2-4 well marks the successful initiation of oil production at the Asphalt Ridge Project, showcasing innovative extraction techniques.

What are the production projections for the HSO 2-4 well?

The well has an estimated ultimate recovery of 300,000 barrels, with an initial production rate of approximately 40 barrels a day.

Who are the main partners in the Asphalt Ridge Project?

Lafayette Energy Corp is the majority owner, while Heavy Sweet Oil, LLC operates the project, with Valkor Oil and Gas LLC contributing expertise.

What are the future plans for drilling at Asphalt Ridge?

After the HSO 2-4 well, Trio plans to drill a third well by late October and up to five additional wells in the subsequent quarter.

How does Trio's product offering differ from competitors?

Trio Petroleum aims to produce both premium asphalt binder and green diesel, leveraging its unique refining capabilities for better market positioning.

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