TriOil Resources Ltd TRIAF

Good update, news out today

[thedave2006]

TriOil reports continued light oil success at Lochend and Kaybob, confirms 2011 exit rate and provides operations update

• Email

• 

  Canada's where it's at, say economists
• Is a 2.99% mortgage too good to be true?
• Cheapest weekends to fly in 2012
• How to be a millionaire
• 9 tax deductions Canadians often miss
• Are iPads now outselling desktop PCs?

RELATED QUOTES

Symbol	Price	Change
TOL.V	3.01	+0.03

CALGARY, Jan. 29, 2012 /CNW/ - TriOil Resources Ltd. ("TriOil" or the "Company" - TSXV: TOL) reports continued strong results on the Company's Lochend Cardium and Kaybob Dunvegan light oil resource plays, confirms its 2011 production exit rate and provides an operations update.

Highlights

• TriOil's Central and Western Lochend trend is yielding very strong Cardium results, with our first 3 slick water completions on this trend posting IP30 rates of approximately 326, 368 and 657 boe/d, IP 60 rates of 258, 315 and 512 boe/d and cumulative production of 23,400, 16,500 and 26,500 barrels of oil.
• The Company's Dunvegan oil play at Kaybob is off to an impressive start. We are very pleased to report that our first Kaybob well has averaged 795 boe/d over its initial 30 days, with cumulative production over 24,000 barrels of oil in its initial 40 days of production. Our second well on the play (TOL operated; 55% working interest) tested at an average rate of 668 boe/d (95% oil) over its initial 3 days of testing.
• Corporate production based on field estimates reached 1,950 boe/d (70% oil and natural gas liquids) in mid-December, in line with exit guidance. Additionally, the Company has completed 2 (1.15 net) wells that are being equipped for production and has 2 (0.55 net) wells that are scheduled for completion in early February.

Lochend Cardium Update

• The Central / Western Lochend Cardium trend continues to see considerable industry drilling activity and significant Cardium results by TriOil and industry, with 19 wells to date achieving IP30 rates of 300 to 800 boe/d.
• TriOil drilled and completed 5 gross wells on the Central / Western Cardium trend in the second half of 2011, all of which are performing well above our current Lochend Cardium type curve and in line with the strong industry results on the trend (see "Key Production Results").
• The Company plans to drill 7 (3.7 net) wells at Lochend in the first half of 2012. Our 2012 drilling program is on schedule with 1 (0.6 net) well drilled, completed and tested at an average rate of 650 boe/d over its initial 3 days of testing. The second well (30% working interest) in the program is drilled and awaiting completion in early February and the third well (100% working interest) is expected to commence drilling this week.
• TriOil owns a significant land position at Lochend (80 gross (55 net) sections). Based on the strong Cardium results posted by TriOil and industry along the higher impact Central / Western Lochend trend over the past year, TriOil has an identified development drilling inventory of approximately 50 (35 net) horizontal locations along this trend.
• A drilling rig is contracted specifically for our Lochend Cardium horizontal drilling program and we plan to run the rig continuously in 2012.

Kaybob Dunvegan Update

• TriOil participated in the first multi-stage horizontal completion on a new Dunvegan oil resource play at Kaybob in the fourth quarter of 2011. The well (30% working interest) has performed extremely well to date, averaging 795 boe/d (95% oil) in its initial 30 day period and yielding cumulative production of approximately 24,000 barrels of oil in its initial 40 days of production.
• TriOil previously announced plans to drill 7 (4.2 net) Dunvegan horizontal wells at Kaybob this winter. The first well (55% working interest) in our 2012 program has been drilled, completed and tested at an average rate of 668 boe/d over its initial 3 days of testing. The second well (25% working interest) in our 2012 program is drilled and awaiting completion in early February and the third well in this year's program is expected to commence drilling in early February.
• TriOil owns, or has the right to earn, interests ranging from 20 to 100 percent in approximately 50 gross (31 net) sections of Dunvegan rights in the greater Kaybob area.
• A drilling rig is contracted specifically for the Kaybob Dunvegan horizontal drilling program and we plan to run the rig continuously in 2012.