Kaybob Montney Oil Pool Development

In 2015, Trilogy drilled 2 wells into its Kaybob Montney oil pool, bringing the total horizontal wells drilled into the pool to date to 109.  Given the current commodity price environment, Trilogy plans to drill 2 additional horizontal Montney oil wells in the first quarter of 2016.  This 2 well program will adapt new drilling and completion technology and implement vendor cost reductions that are expected to reduce drilling and completions costs from $4.1 million per well in prior years to approximately $2.9 million per well in 2016.  Trilogy will evaluate its activity levels in this pool when crude oil prices begin to improve.  As of year-end 2015, the pool has produced approximately 10 MMBbl of oil since its discovery in 2010.

Production in 2015 was lower than expected due to certain workover and optimization projects being delayed until commodity prices improve. Pool production averaged 7,562 Boe/d (57 percent oil and natural gas liquids), with operating costs of $6.09/Boe and operating netback of $25.64/Boe, as compared to 10,437 Boe/d, $7.92/Boe and $47.74/Boe respectively, in 2014.