Trilogy Energy Trust (1) (TET.UN): is a Canadian energy trust formed through the spinout of a portion of Paramount Resources assets in the Kaybob and Marten Creek areas of central Alberta. These assets are primarily low-risk, high working interest, lower-decline properties that are geographically concentrated with many infill drilling opportunities, good access to infrastructure and processing facilities that are operated and controlled by the Trust. By operating the wells and production infrastructure, we can control two variables that affect the cash flow and revenues of the Trust.
The Trust will employ a strategy to provide Unitholders with: a competitive annual yield by making monthly cash distributions to Unitholders, maintain the Trilogy assets at a level that provides stable production, and continue to expand the business of the Trust through the development of growth opportunities that will provide long-term stable cash flows.
The technical expertise that has been employed at Paramount will continue to develop and exploit the land and reserves in Kaybob and Marten Creek. The field operation has been growing and developing the operational expertise to operate effectively and efficiently in the Kaybob area and will continue to be an intregal part of the exploitation and production of the assets. The Trust's infill drilling opportunities and large undeveloped land base are expected to make it less reliant on the acquisition market to maintain distributions. The management of Trilogy Energy Ltd., the Administrator of the Trust, will consider strategic asset acquisitions that would be accretive to the production, reserves and cash flow of the Trust and provide undeveloped potential that can be exploited to increase the value of the Trust.