Dunvegan Oil Development

In the third quarter, Trilogy sold its interest in its Kaybob Dunvegan oil play for net proceeds of approximately $45 million. This asset produced approximately 650 Boe/d for the first seven months of 2015 (1.1 MMcf/d of natural gas and 450 Bbl/d of crude oil and natural gas liquids) from the Dunvegan formation. The transaction included approximately 15 net sections of both developed and undeveloped Dunvegan mineral rights in the immediate area. Trilogy retained its non-Dunvegan mineral rights and producing infrastructure as part of the transaction. Trilogy divested of this play in support of its strategy of maintaining its focus and capital spending on the Montney and Duvernay formations in the Kaybob area.