Gething Oil Development

In the first quarter of 2015, Trilogy drilled one well at 3-20-63-19W5 (the “3-20 well”), resulting in a successful horizontal Gething oil well, which was completed and brought on production in the third quarter of the year.  The 3-20 well information further supported Trilogy’s existing mapping in the area and generated attractive economics that will support the allocation of additional capital to this Gething oil pool.

Trilogy has had positive production results from the four wells that have been drilled in the Gething oil pool to date. Trilogy plans to expand the drilling activity in this pool when crude oil prices improve.  The following table contains production information up to December 31, 2015 for these four wells.

Average horizontal well costs for Gething wells in this play are expected to be approximately $5 million to drill, complete, equip and tie-in to a single well battery.  Average reserves per well, based on the Company’s 2015 year end reserves report for these four wells are 290 MBoe of proved reserves (223 MBoe of crude oil and natural gas liquids and 440 MMcf of natural gas) and 416 MBoe of proved plus probable reserves (321 MBoe of crude oil and natural gas liquids and 569 MMcf of natural gas).