TRILOGY ENERGY CORP.
TSX : TET

TRILOGY ENERGY CORP.

October 21, 2010 09:00 ET

Trilogy Energy Corp. Provides Operations and Borrowing Base Update and Announces October Dividend

CALGARY, ALBERTA--(Marketwire - Oct. 21, 2010) -

Operations Update

Trilogy Energy Corp. ("Trilogy") (TSX:TET) is pleased to announce the completion of its 53 km Presley Pipeline (the "Pipeline") and the expansion of its Kaybob North Sour Gas Plant (the "Plant") (collectively, the "Projects"). The Projects were commissioned in early October to handle natural gas produced from Trilogy's Presley property in South Kaybob. The Projects currently transport and process approximately 45 MMcf/d of sour natural gas. Drilling and completion operations in the Presley area were suspended in late August through September due to poor ground conditions caused by wet weather. Trilogy resumed operations in the area during the month of October. Trilogy expects to keep two drilling rigs active in the Presley area, drilling horizontal Montney wells, for the balance of the year. Trilogy anticipates tie-in operations will be completed on 3 (2.5 net) wells by mid-November. Continued drilling and completion success will allow Trilogy to increase gas production to fill the existing compression which has a capacity limit of 65 MMcf/d. Additional field compression and Plant expansion will be required to increase production to 100 MMcf/d to match the production capacity of the new Pipeline.

Borrowing Base Review

On completion of Trilogy's mid year borrowing base review, Trilogy's borrowing base has been increased to $390mm. The increase reflects the inclusion of the $40mm Projects facility into Trilogy's credit facility.

October Dividend

Trilogy also announces that its cash dividend for October 2010 will be $0.035 per share. The dividend is payable on November 15, 2010 to shareholders of record on November 1, 2010. The ex-dividend date is October 28, 2010.

Forward-Looking Statements Advisory 

In the interests of providing Trilogy Shareholders and potential investors with information regarding Trilogy, certain information included in this news release constitutes forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "continue", "estimate", "propose", "budget", "forecast", "outlook", "may", "will", "could", "potential", "target" or similar words suggesting future outcomes or statements regarding an outlook. In particular, this news release contains forward-looking statements pertaining to Trilogy's anticipated operations and production levels in the Presley area and estimated throughput to the Pipeline and Plant.

Such forward-looking statements are based on a number of assumptions regarding, among other things, current production forecasts; current commodity price forecasts for petroleum, natural gas and natural gas liquids; the ability of Trilogy and its partners to obtain operational results consistent with expectations; assumptions regarding expenses and royalties; assumptions regarding capital expenditures; and general economic and business conditions, which may prove to be incorrect. Although Trilogy believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Trilogy can give no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: volatility of oil and gas prices, foreign currency, exchange rates, interest rates and market demand; the risks of the oil and gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserves estimates and reserves life; imprecision in estimating future production, costs and expenses; the ability of management to execute its business plan; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; Trilogy's ability to secure adequate product processing, transmission and transportation; the ability of Trilogy to add production and reserves through development and exploration activities; uncertainties as to the availability and cost of financing, including Trilogy's ability to extend its credit facility on an ongoing basis; Trilogy's ability to enter into or renew leases and obtain regulatory approvals; the possibility that government programs, policies, regulations or laws relating to royalties, taxation or the environment, may change; risks inherent in Trilogy's marketing operations, including credit risk; risks associated with existing and potential future lawsuits and regulatory actions against Trilogy; health, safety and environmental risks; uncertainty regarding aboriginal land claims and co-existing local populations; weather and general economic and business conditions and other risks and uncertainties described elsewhere in this document or in Trilogy's other filings with Canadian securities authorities.

The forward-looking statements contained in this news release are made as of the date hereof and Trilogy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

About Trilogy

Trilogy is a petroleum and natural gas-focused Canadian energy corporation that actively acquires, develops, produces and sells natural gas, crude oil and natural gas liquids. Trilogy's geographically concentrated assets are primarily low-risk, high working interest, lower-decline properties that provide abundant infill drilling opportunities and good access to infrastructure and processing facilities, many of which are operated and controlled by Trilogy. Trilogy's common shares are listed on the Toronto Stock Exchange under the symbol "TET".

Contact Information

  • Trilogy Energy Corp.
    J.H.T. (Jim) Riddell
    Chief Executive Officer
    (403) 290-2900
    (403) 263-8915 (FAX)
    or
    Trilogy Energy Corp.
    J.B. (John) Williams
    President and Chief Operating Officer
    (403) 290-2900
    (403) 263-8915 (FAX)
    or
    Trilogy Energy Corp.
    M.G. (Mike) Kohut
    Chief Financial Officer
    (403) 290-2900
    (403) 263-8915 (FAX)
    or
    Trilogy Energy Corp.
    #1400, 332 - 6th Avenue S.W.
    Calgary, Alberta T2P 0B2