Trilogy Energy Corp. said Nov. 19 it has entered into an agreement to sell certain Duvernay assets for US$85 million. The buyer wasn't disclosed.

The deal includes 11 net sections of the Calgary, Alberta company's Duvernay mineral rights in the volatile oil window of its Kaybob Duvernay play.

In connection with the sale, Trilogy will also swap 5.25 net sections of its Duvernay undeveloped lands for an equivalent number of sections of Duvernay rights for no additional consideration. The exchange is in an effort to consolidate the company's land position in the play.

The assets are predominantly nonoperated and have an average production of about 780 barrel of oil equivalent per day (boe/d) net to Trilogy for the first nine months of 2015. Production for October is estimated to be 580 boe/d, the release said.

As a result of the sale, Trilogy's capex commitments are expected to be reduced by about C$15 million for the fourth quarter and up to C$75 million for 2016.

On completion of the sale, Trilogy's borrowing base will be reduced to C$450 million from C$538 million. The C$125 million development facility will be eliminated. Including the sale proceeds, the company is expected to have about C$270 million drawn at year-end, according to the release.

The sale is expected to be completed on or about Nov. 30. BMO Capital Markets was financial adviser to Trilogy.