The development plan for the onshore oil and gas project in California also calls for the resumption of production from the existing HV-3A and BM 2-2 wells
US-based oil and gas firm Trio Petroleum has started activities for the full field development of its 9,267-acre South Salinas project in Monterey County, California.
Trio Petroleum commences full field development at South Salinas Project in California. (Credit: Anita starzycka from Pixabay)
Trio Petroleum's current leasehold at the South Salinas project estimates the Original Oil In Place (OOIP) at 2.12 billion barrels of oil (BBO) and the Original Gas In Place (OGIP) at 1.18 trillion cubic feet of gas (Tcf), both attributed to the company.
The near-term plans of the company include testing and producing the HV-1 well followed by the drilling of the HV-2 and HV-4 wells. Previously, two production/discovery wells, which are HV-3A and BM 2-2 wells, were drilled on the asset, which are now owned by the company.
Trio Petroleum said that it has engaged the services of an independent, third-party consultant to expand the existing initial environmental impact report (IEIR) into a full environmental impact report (FEIR). This will help secure conditional use permits and other permits that are required for the full field development of the South Salinas project, said the company.
The consulting company has prior experience and know-how of the project. It played a part in producing the IEIR apart from helping Trio Petroleum secure the existing permits for the HV-1, HV-2, HV-3A, and HV-4 wells at the project.
Upon approval, Trio Petroleum’s application for a full field development permit will facilitate long-term oil and gas production, including the drilling of new wells in addition to those covered by existing permits.
The permit will also enable the resumption of oil and gas production at the HV-3A and BM 2-2 wells, on-site disposal of produced water at the BM 1-2-RD1 well, and the construction of permanent production facilities, among other activities.
Trio Petroleum expects the production test of the HV-1 discovery well at the South Salinas Project to begin this week. The production rig, production tanks, and other required equipment are presently moving onto the site and initial test results are likely to be revealed in the coming days.
Trio Petroleum CEO Frank Ingriselli said: “The upcoming testing of our HV-1 well holds immense value in shaping the design of this plan, which, as previously disclosed, carries a discounted potential of approximately $2 billion in net cash flow.
“We are eagerly looking forward to sharing the final results with our shareholders in the near future, solidifying our commitment to transparency and maximising shareholder value.”
