Duvernay Shale Play

Trilogy successfully drilled, completed and tied in 2 (2.0 net) horizontal Duvernay wells in 2016. Each well was drilled and completed on a single well pad at a cost of approximately $10.2 million per well. The significant reduction in costs relative to previous Duvernay wells reflects improvements in efficiencies and operational performance during the drilling and completion operations.


The 02/16-17-61-19W5 well was placed on production on November 10, 2016 and has produced for 3 months since that time, producing an aggregate of 24 MBbl of condensate and 304 MMcf of natural gas up to February 28, 2017. Production was initially restricted through a downhole choke, which was removed in January 2017. The condensate to gas ratio has averaged approximately 79 Bbl/MMcf in the initial 3 producing months.


The 12-21-63-17W5 well was drilled to manage a nine section block of acreage that was set to expire at the end of 2016. The well was brought on production on December 21, 2016 and has produced an aggregate of approximately 26 MBbls of crude oil/condensate (42 degree API, density of 814 kg/m3) and 39 MMcf of natural gas in the past 2 months. The condensate/oil to gas ratio has averaged 657 Bbl/MMcf in the initial 2 producing months.

Trilogy is very encouraged by its own Duvernay results as well as the progress that has been made by industry to begin the commercial development of the Duvernay. As Trilogy continues to develop its Duvernay shale assets, it may require additional sources of funding to accelerate the development of some or all of its acreage within the Duvernay play. This may offset Trilogy’s working interest in, and the reserves and future net revenue attributable to these or other properties. Trilogy has processing capacity in place to produce volumes from its Duvernay development plan for the initial two to three year period; however, to deliver on the longer term Duvernay development plan, Trilogy will require access to additional operated and non-operated natural gas processing and NGL handling infrastructure.