On August 2, 2007, Trilogy closed on the sale of certain Southern Alberta producing properties, representing approximately 500 Boe/d of production and 1.2 MMBoe of proved plus probable reserves, for proceeds of $23.3 million. The assets were spread over a large geographic area in Southern Alberta, which provided numerous challenges, including the requirement for significant attention to maintain daily production, as we integrated these wells into Trilogy’s operations following the acquisition of Blue Mountain Energy in October, 2006.
Exploration projects were retained in this area by Trilogy as it considered the exploration value of the assets to be significantly higher than the developed properties that were sold. Trilogy intends to continue to explore these lands and create value prior to ultimately divesting of these properties.