Canadian-based Trilogy Energy has signed an agreement to sell certain Duvernay assets in the Kaybob area of Alberta to an undisclosed purchaser for $60m.
The agreement involves the sale of around 9.75 net sections of Duvernay mineral rights in the company’s Kaybob Duvernay play and its 11% interest in a non-operated gas plant.
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During April this year, the non-operated Duvernay assets reported an average production of about 640 barrels of oil equivalent (mmboe) a day, including 2.6 million cubic feet a day of natural gas and 200 barrels a day of natural gas liquids.
According to a reserves estimate, the total proved developed producing reserves pertaining to the assets amounted to 879mmboe as of 31 December last year.
Completion of the sale is expected on or around 31 May, upon which the company will continue to hold interest in the Kaybob area Duvernay play, with around 175 net sections of land in areas prospective for Duvernay shale development.
In addition, Trilogy stated that the previously announced sale of certain Valhalla assets in the Grande Prairie area of Alberta for $50m hinges on the receipt of the approval of Alberta Energy Regulator for the transfer of the wells, pipelines and facilities.
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By GlobalDataIt is expected that the sale will be completed by the end of the month.
The sale proceeds will be used to reduce the company’s debt, with the planned asset sales of Valhalla and Duvernay expected to bring down the borrowing base from $300m to $285m.
