Testing Operations to Continue on Additional Intervals

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DANVILLE, CA, Aug. 02, 2023 (GLOBE NEWSWIRE) — Trio Petroleum Corp. (NYSE American: TPET) (“Trio” or the “Company”), a California-based oil and gas company, today announced that the first test interval (a stratigraphic subzone of the Mid-Monterey Clay Member of the Monterey Formation) that is being production tested at the HV-1 discovery well of the South Salinas Project has tested at rates up to approximately 125 barrels of oil per day (BOPD) with associated natural gas and water. These initial test results are preliminary and are based on swabbing operations that may not be definitive. Swabbing operations of the first test interval are scheduled through the end of this week to obtain additional data. The Company then plans to conduct testing operations on additional zones which are believed to be even more prospective.

Videos of the oil production test can be found on the “Investors” tab of the Company’s website: https://ir.trio-petroleum.com

“The initial findings of the HV-1 well are highly encouraging, with improving overall production rates and increasing oil cuts. Despite not initially assigning reserves to the Mid-Monterey Clay interval, our testing shows great promise. This interval is about 2,000 feet thick, and currently, we are only testing a small portion of it. The Mid-Monterey Clay interval was on our radar as a potential producing zone due to good oil indications in our HV-3A discovery well and other nearby wells.” said CEO Frank Ingriselli. “While we eagerly anticipate additional results from the ongoing testing of both the Mid-Monterey Clay and the shallower zones, particularly the Yellow-Brown Zone, we are delighted with the invaluable insights they are providing. These insights will play a pivotal role in shaping our development plan, which has already been disclosed to hold a discounted potential of approximately $2 billion in net cash flow. This potential production asset could lead to cash flowing operations in the third quarter.”

HV-1 Discovery Well Production Test Update

On July 15-16, the HV-1 well was perforated at a measured depth of 6,379-6,560 feet (181 gross feet) in the Mid-Monterey Clay Member and acidized for borehole-cleanup. Nine days of swabbing operations carried-out since that time show improving results and currently indicate that the first test interval may be capable of producing approximately 500 barrels of fluid per day, with approximately 25% oil cut (i.e., 125 BOPD) and associated gas. However, as noted above, these initial test results are preliminary and are based on short-term swabbing operations that may not be definitive and, therefore, swabbing and testing operations are continuing to obtain additional and more-definitive data.

It is important to note that the primary-objective of the HV-1 well is the shallower “Yellow-Brown Zone” of the Monterey Formation, which has not yet been tested in the HV-1 well and which occurs in the HV-1 well at 4,781-5,863 feet (measured depth). The Yellow-Brown Zone was oil and gas productive in the Company’s HV-3A discovery well and is assigned reserves in the Company’s Reserve Report as filed with the SEC, whereas the deeper Mid-Monterey Clay Member that is now being tested (i.e., perforations at 6,379-6,560’) is currently not assigned reserves. Project reserves will increase if economic production is established in the Mid-Monterey Clay in the HV-1 well. Production-testing operations at the appropriate time will move up hole to test the primary-objective Yellow-Brown Zone, which the Company believes looks very promising.

The HV-1 discovery well is the second well drilled to-date in the Presidents Oil field of the Company’s South Salinas Project, which is located in Monterey County, California. Earlier press releases (June 20, June 30 & July 7, 2023) included the following background information about the HV-1 confirmation well:

1) The HV-1 well is a two-mile step-out from Trio’s HV-3A discovery well that found high-quality, mid-gravity oil at depths between 3,750 to 5,100 feet.
2) The HV-1 well drilled through approximately 1,800 feet of the Monterey Formation with major indications of oil and gas prior to reaching total depth at 6,631 feet.
3) The HV-1 well confirmed a major accumulation of oil and gas in the Presidents Field.
4) The HV-1 well was successfully completed by cementing seven-inch casing from a depth of 6,626 feet to the ground surface.
5) A Schlumberger CBL (cement bond log) indicates that the hole is properly cemented, which will support safe operations (including the protection of personnel and of the environment) and protect any potential underground sources of drinking water.
6) An independent, third-party interpretation by a log analyst of the Schlumberger FMI log (Formation Image log) that was run in the HV-1 well indicates:

a) There are abundant, open natural-fractures (more than 900) in the target reservoir zones of the Monterey Formation (note: open natural-fractures commonly are an important ingredient of successful Monterey Formation oil/gas wells).
b) There are common faults (five faults and twenty-four possible faults and/or micro-faults) in the target reservoir zones of the Monterey Formation (note: faults and associated natural-fractures are common important ingredients of successful Monterey Formation oil/gas wells).

7) An independent, third-party, integrated interpretation by a geophysicist of the HV-1 well data and the 3D seismic data indicates:

a) The HV-1 well has confirmed the occurrence of the major, subsurface, anticlinal geologic structure that comprises the Presidents Field, almost exactly as previously mapped.
b) The HV-1 well in the secondary-objective Mid-Monterey Clay Member drilled across a normal-fault (one of the aforementioned five faults identified in the FMI data) into a high fault-block along the crest of the anticline (note: the FMI interpretation indicates that the high fault-block has abundant, open natural-fractures).

8) Trio Petroleum LLC (the operator) intends to production test the HV-1 well from approximately 4,500 to 6,600 feet (measured depth), which will be done in likely four or more successive stages across different depth intervals, working from the base upwards.

a) Each interval is planned to be perforated, acidized (i.e., acid cleanup) and tested individually.
b) The first interval to be tested was planned to be from approximately 6,390 to 6,620 feet, which is the aforementioned interpreted high fault-block with abundant, open natural-fractures and various faults. This interval is comprised largely of porcelanous claystone. There were significant shows of oil and gas and free oil in this interval during drilling operations.
c) Initial oil and gas production rates at the HV-1 well will be announced after initial production tests are completed.

Trio anticipates that oil production from the HV-1 well will generate cash flow in Q3, 2023, and that additional cash flow will be generated in Q3-Q4, 2023, from the planned HV-2 and HV-4 wells, and also from acquisitions of equity interests in other producing assets, such as the previously-announced and currently under-review acquisition of an interest in the Union Avenue producing oil field.

Full field development of the Project has an estimated net cash flow to the company, discounted at 10%, of approximately $2 billion, as described in the company’s public filings with the SEC and on its website (www.trio-petroleum.com).

About Trio Petroleum Corp

Trio Petroleum Corp is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California. Trio has a large, approximately 9,267-acre asset called the “South Salinas Project” where it owns an 85.75% working interest. Trio’s near-term plans include testing and producing the HV-1 well, and then drilling the HV-2 and HV-4 wells. Previous operations on this asset have successfully drilled two (2) production/discovery wells (i.e., the HV-3A and BM 2-2 wells) that Trio now owns.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Trio Petroleum Corp (“Trio”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Trio’s control, that could cause actual results to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Trio’s S-1 filed with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. Trio undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Relations Contact:
Redwood Empire Financial Communications
Michael Bayes
(404) 809 4172