Trio Petroleum Corp. started full field development of its South Salinas project in Monterey County, Calif. (OGJ Online, May 1, 2023).
Development plans include testing and producing the HV-1 well, drilling HV-2 and HV-4 wells, resumption of oil and gas production at the existing HV-3A and BM 2-2 wells, on-site disposal of produced water at the BM 1-2-RD1 well, and construction of permanent production infrastructure.
A production test of the South Salinas project HV-1 discovery well is expected to start the week of July 10, 2023, and will include perforation and acidization (for borehole acid-cleanup). The production rig, production tanks, and other equipment are currently moving onto location.
Trio anticipates that oil production from HV-1 will generate cash flow in third-quarter 2023 and that additional cash flow will be generated in third- to fourth-quarter 2023 from HV-2 and HV-4, and from acquisitions of equity interests contemplated in other producing assets, such as an under review acquisition of interest in Union Avenue oil field.
The South Salinas project covers about 9,267 acres and has P2 probable + P3 possible recoverable oil and gas reserves of about 163 MMboe.
Trio is operator of the project with 85.75% interest.