CALGARY, May 1, 2017 /CNW/ – Trilogy Energy Corp. (“Trilogy” or the “Company”) (TSX – TET) is pleased to announce that it has agreed to sell certain assets located in the Grande Prairie area of Alberta for cash consideration of $50 Million (before customary adjustments). The transaction is conditional upon the purchaser’s receipt of the Alberta Energy Regulator (“AER”) approvals for the transfer of the wells, pipelines and facilities. Payment of the purchase price has been deposited with Trilogy’s legal counsel and will be released upon satisfaction of this condition. The assets being sold consist of approximately 44,427 total net acres of mineral rights (including approximately 11,500 net acres of Montney and/or Doig mineral rights) in the Valhalla area along with current production of approximately 1,100 Boe/d (16% oil and natural gas liquids) net to Trilogy, estimated Total Proved Developed Producing reserves of approximately 1,800 MBoe and Total Proved plus Probable reserves of approximately 5,500 MBoe, each as at December 31, 2016, net of Q1 2017 production.
The sale is effective May 1, 2017 and is expected to be completed before the end of May, 2017, provided the purchaser receives the above mentioned AER approvals. Proceeds from the sale will be applied to reduce Trilogy’s indebtedness under its revolving credit facility.
The annual review for Trilogy’s revolving credit facility has concluded and, subject to the completion of customary documentation, has resulted in an extension of the term for one year to April, 2019 and a borrowing base of $300 Million, which will be reduced to $290 Million on closing to reflect the sale of the assets in the Grande Prairie area.
Trilogy is a petroleum and natural gas-focused Canadian energy corporation that actively develops, produces and sells natural gas, crude oil and natural gas liquids. Trilogy’s geographically concentrated assets are primarily high working interest properties that provide abundant low-risk 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”.