First Oil Production Confirmed at Asphalt Ridge's Well HSO 2-4

Core Viewpoint - Trio Petroleum Corp has successfully confirmed oil production from its first well HSO 2-4 at the Asphalt Ridge Project in Utah, utilizing a downhole heater to enhance bitumen flow [1][2]. Group 1: Project Overview - The Asphalt Ridge Project is recognized as one of the largest tar-sand deposits in North America outside Canada, with significant potential for oil production [2]. - The project is estimated to contain the largest measured tar-sand resource in the United States, characterized by low wax and negligible sulfur content, making it desirable for various industries [2]. - Trio's leasehold at the Asphalt Ridge Project encompasses approximately 30,000 acres, with potential for two and a half acre well spacing [2]. Group 2: Production Details - The HSO 2-4 well, approximately 1,390 feet deep, has an estimated ultimate recovery (EUR) of 300,000 barrels of oil and an initial production rate of about 40 barrels per day [2]. - Plans are underway to test a second downhole heater from a different manufacturer, which could significantly reduce operating expenses [3]. - Production from the HSO 2-4 and the upcoming 8-4 wells will utilize the same separation equipment and facilities [3]. Group 3: Product Composition and Market Potential - Initial production appears to include higher-gravity oil that can be refined on-site into low sulfur diesel, which is expected to sell at a premium [4]. - The project aims to produce both commercial-grade asphalt binder and green diesel, with the latter anticipated to yield higher margins compared to WTI [4]. Group 4: Future Plans - The company plans to design systems for all seventeen 7-well pads, with capacity for production from 21 wells from the first three pads, expanding as new pads are brought into production [6]. - A third well is expected to be drilled as early as late October, with an additional five wells planned for Q4 2024, depending on rig and service availability [3]. Group 5: Partnerships and Ownership - The majority working-interest owner of the Asphalt Ridge Project is Lafayette Energy Corp, with Heavy Sweet Oil, LLC as the operator, in partnership with Valkor Oil and Gas LLC [7].