Press release from Marketwire
Trilogy Energy Corp. Announces September Dividend and Provides Exploration Update on Kaybob Duvernay
Tuesday, September 14, 2010
CALGARY, ALBERTA--(Marketwire - Sept. 14, 2010) - Trilogy Energy Corp. ("Trilogy") (TSX:TET) announces its dividend for September 2010 and provides an update on recent drilling and completion results from its first horizontal well targeting the Devonian Duvernay formation.
Trilogy announces that its cash dividend for September 2010 will be $0.035 per share. The dividend is payable on October 15, 2010 to shareholders of record on September 30, 2010. The ex-dividend date is September 28, 2010.
Kaybob Devonian Duvernay
In the Kaybob area, Trilogy has participated in the drilling and completion of its first exploration horizontal well targeting the Devonian Duvernay shale formation under a previously announced joint venture with two industry partners, pursuant to which each partner has a 33.3 percent working interest in 27 gross sections of land.
The exploratory well, located at 00/15-33-060-20W5, was drilled and cased over 42 days at a cost of $4.0 million. The horizontal lateral was 1,787 metres; this was 500 metres longer than originally planned and would have allowed for a total of 13 frac stages. During the completion of the well, six stages were fractured over a time interval of 10 days. Each stage was fractured with approximately 100 tonnes of sand and 1,500 cubic metres of slick water. While attempting to fracture the seventh stage, it is believed that a rupture in the line occurred at the heal portion of the horizontal leg, preventing the fracture of the remaining stages. It was decided to flow test the well with the six stimulated stages while determining the feasibility of fracturing the remaining stages. Tubing and recorders were run and the well has flowed on test starting September 11, 2010. Prior to the flow test, the well flowed on clean-up for a total of 140 hours.
After three days on test, the well is currently producing approximately 2.1 MMcf per day of sweet natural gas and 56 degrees API condensate. The gas is liquids rich and is expected to yield total liquids of approximately 75 barrels per MMcf of raw gas including free condensate.
After completing the flow test, the well will be shut-in, allowing for build-up. Bottom hole pressure is expected to be approximately 50 MPa. Although completion operations were suspended part way through the process, it is estimated that the well could have been completed with a 13-stage multi frac for approximately $3.0 million, without any operational difficulties. As a result, total drilling and completion costs would be approximately $7.0 million.
Trilogy is encouraged by the results from the first horizontal Duvernay shale well and particularly the high liquids content given the premium in pricing for natural gas liquids. Trilogy expects to participate in one or two more wells targeting the Duvernay shale formation during the balance of 2010. Trilogy currently owns 144,569 gross acres and 125,810 net acres (226 gross sections and 197 net sections) of land with Duvernay rights at Kaybob and surrounding areas.
Trilogy is a petroleum and natural gas-focused Canadian energy corporation that actively acquires, develops, produces and sells natural gas, crude oil and natural gas liquids. Trilogy's geographically concentrated assets are primarily low-risk, high working interest, lower-decline properties that provide abundant infill drilling opportunities and good access to infrastructure and processing facilities, many of which are operated and controlled by Trilogy. Trilogy's common shares are listed on the Toronto Stock Exchange under the symbol "TET".
Forward-Looking Statements Advisory
In the interests of providing Trilogy Shareholders and potential investors with information regarding Trilogy, certain information included in this news release constitutes forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "continue", "estimate", "propose", "budget", "forecast", "outlook", "may", "will", "could", "potential", "target" or similar words suggesting future outcomes or statements regarding an outlook. In particular, this news release contains forward-looking statements pertaining to Trilogy's Kaybob area Duvernay shale exploration program and the expected benefits therefrom.
Such forward-looking statements are based on a number of assumptions regarding, among other things, current production forecasts; current commodity price forecasts for petroleum, natural gas and natural gas liquids; the ability of Trilogy and its partners to obtain operational results consistent with expectations; assumptions regarding expenses and royalties; assumptions regarding capital expenditures; and general economic and business conditions, which may prove to be incorrect. Although Trilogy believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Trilogy can give no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur.
By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: volatility of oil and gas prices, foreign currency, exchange rates, interest rates and market demand; the risks of the oil and gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserves estimates and reserves life; imprecision in estimating future production, costs and expenses; the ability of management to execute its business plan; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; Trilogy's ability to secure adequate product processing, transmission and transportation; the ability of Trilogy to add production and reserves through development and exploration activities; uncertainties as to the availability and cost of financing, including Trilogy's ability to extend its credit facility on an ongoing basis; Trilogy's ability to enter into or renew leases and obtain regulatory approvals; the possibility that government programs, policies, regulations or laws relating to royalties, taxation or the environment, may change; risks inherent in Trilogy's marketing operations, including credit risk; risks associated with existing and potential future lawsuits and regulatory actions against Trilogy; health, safety and environmental risks; uncertainty regarding aboriginal land claims and co-existing local populations; weather and general economic and business conditions and other risks and uncertainties described elsewhere in this document or in Trilogy's other filings with Canadian securities authorities.
The forward-looking statements contained in this news release are made as of the date hereof and Trilogy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Trilogy Energy Corp. J.H.T. (Jim) Riddell Chief Executive Officer (403) 290-2900 (403) 263-8915(FAX)or
Trilogy Energy Corp. J.B. (John) Williams President and Chief Operating Officer (403) 290-2900 (403) 263-8915(FAX)or
Trilogy Energy Corp. M.G. (Mike) Kohut Chief Financial Officer (403) 290-2900 (403) 263-8915(FAX)or
Trilogy Energy Corp. #1400, 332 - 6th Avenue S.W. Calgary, Alberta T2P 0B2