California’s Trio Petroleum Corp. has begun full field development activities for its South Salinas Project, including commissioning a full environmental impact report and obtaining the permits necessary to achieve full field development, the company announced in a July 7 press release.
Trio’s application for full field development will allow long-term oil and gas production, added drilling of new wells, construction of production facilities, produced water disposal from the BM 1-2-RD1 well and the resumption of oil and gas production from Trio’s HV-3A and BM 2-2 wells.
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Trio commissioned an independent, third-party consulting firm with prior experience with the South Salinas Project from generating its initial environmental impact report and obtaining Trio’s existing permits for the HV-1, HV-2, HV-3A and HV-4 wells.
As previously announced, the project’s HV-1 discovery well will have a production test on the week of July 10 and include perforation and acidization for borehole acid-cleanup of the well.
The HV-1 well’s oil production is expected to begin generating cash flow in third quarter 2023. The planned HV-2 and HV-4 wells are expected to generate cash flow in the third and fourth quarters of 2023.
“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,” Trio Petroleum CEO Frank Ingriselli said in the release.
Trio Petroleum is headquartered in Bakersfield, California, with operations in Monterey County.