UPDATE 1-Trilogy Energy sets 2011 capex at C$130 mln

* Sees 2011 production rate of 26,500 boe/d

* Says 2010 exit rate at 25,000 boe/d

* Sees 2011 operating costs at C$8.50 per boe

Dec 7 (BestGrowthStock) – Trilogy Energy Corp (TET.TO: ), a petroleum
and natural gas company, said it expects capital expenditure of
C$130 million for 2011, mainly on drilling activities at its
Kaybob and Grand Prairie assets in the Alberta province of
western Canada.

The Calgary-based company forecast production rate of about
26,500 barrels of oil equivalent per day (boe/d) for next year
— a 15 percent rise from the current year’s outlook — as a
result of the use of horizontal drilling and completion
technologies in developing assets.

Trilogy expects operating costs at C$8.50 per boe in 2011.

The company expects to exit 2010 with a production rate of
25,000 boe/d, helped by the tie in of six wells that were
drilled and completed during the year.

Trilogy shares, which have gained 9 percent in value since
it forecast 2010 production rate of 23,000 boe/d in November,
closed at C$11.38 on Tuesday on the Toronto Stock Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by
Gopakumar Warrier)

UPDATE 1-Trilogy Energy sets 2011 capex at C$130 mln