Trilogy Energy Corp. (TSX:TET) ("Trilogy") is pleased to announce its financial
and operating results for the three and six months-ended June 30, 2014.


Financial and Operating Highlights



--  Reported sales volumes for the second quarter of 2014 were 9 percent
    higher at 36,187 Boe/d as compared to 33,135 Boe/d for the previous
    quarter. 
--  Second quarter oil sales volumes increased 28 percent to 9,557 Bbl/d
    from 7,440 Bbl/d in the previous quarter. Oil and natural gas liquids
    sales volumes represented 41 percent of total sales volumes in the
    quarter as compared to 39 percent in the prior quarter. 
--  Operating expenditures decreased 20 percent quarter over quarter from
    $36.5 million in the first quarter to $29.3 in the second quarter. On a
    per unit of production basis, operating costs decreased from $12.23/Boe
    in the first quarter to $8.89/Boe in the second quarter. 
--  Net capital expenditures totaled $111.9 million as compared to $174.3
    million for the prior quarter and $57 million for the second quarter of
    2013. 
--  Funds flow from operations (1) increased 26 percent to $102.2 million as
    compared to $81.2 million for the previous quarter (Q2 2013 -$88.1
    million). 
--  In total 16 (8.2 net) wells were drilled in the quarter as compared to
    31 (24.1 net) wells drilled in the prior quarter and 10 (8.1 net) wells
    in the second quarter of 2013. 
--  Positive Duvernay drilling and completion results for the 8 (5.2 net)
    horizontal wells drilled in the Kaybob area. 
--  Remaining debt capacity under Trilogy's revolving credit facility as at
    June 30, 2014 was $261.1 million.  
--  Dividends declared to Shareholders totaled $13.2 million or 15 percent
    of cash flow from operating activities (prior quarter - $13.2 million or
    17 percent). 

(1) Refer to Non-GAAP measures in this release and MD&A                     
                                                                            
Financial and Operating Highlights Table                                    
(In thousand Canadian dollars except per share amounts and where stated     
otherwise)                                                                  
                                                                            
                       Three Months Ended        Six Months Ended June 30   
                   June 30, March 31,                                       
                       2014      2014 Change %      2014      2013 Change % 
----------------------------------------------------------------------------
FINANCIAL                                                                   
Petroleum and                                                               
 natural gas sales  178,097   157,436       13   335,533   302,037       11 
Funds flow                                                                  
  From                                                                      
   operations(1)    102,172    81,243       26   183,412   168,449        9 
  Per share -                                                               
   diluted             0.80      0.64       25      1.44      1.41        3 
Earnings                                                                    
  Earnings (loss)                                                           
   before tax        37,612    24,396       54    62,007    40,169       54 
  Per share -                                                               
   diluted             0.30      0.19       54      0.49      0.34       46 
  Earnings (loss)                                                           
   after tax         28,234    17,386       62    45,619    29,661       54 
  Per share -                                                               
   diluted             0.22      0.14       62      0.36      0.25       45 
Dividends declared   13,211    13,165        0    26,377    24,638        7 
  Per share           0.105     0.105        -     0.210     0.210        - 
Capital                                                                     
 expenditures                                                               
  Exploration,                                                              
   development,                                                             
   land,                                                                    
  and facility      111,666   169,867      (34)  281,531   226,492       24 
  Acquisitions                                                              
   (dispositions)                                                           
   and                                                                      
  other - net           285     4,438      (94)    4,724       198    2,286 
Net capital                                                                 
 expenditures       111,951   174,305      (36)  286,255   226,690       26 
Total assets      1,726,495 1,676,448        3 1,726,495 1,509,213       14 
Net debt(1)         750,109   728,054        3   750,109   719,171        4 
Shareholders'                                                               
 equity             692,726   669,901        3   692,726   504,165       37 
Total shares                                                                
 outstanding                                                                
 (thousands)                                                                
  - As at end of                                                            
   period (2)       125,755   125,160        0   125,755   117,841        7 
----------------------------------------------------------------------------
OPERATING                                                                   
Production                                                                  
  Natural gas                                                               
   (MMcf/d)             127       121        5       124       121        2 
  Oil (Bbl/d)         9,557     7,440       28     8,504    11,612      (27)
  Natural gas                                                               
   liquids (Boe/d)    5,448     5,518       (1)    5,483     4,857       13 
  Total production                                                          
   (Boe/d @ 6:1)     36,187    33,135        9    34,670    36,667       (5)
----------------------------------------------------------------------------
Average prices                                                              
 before financial                                                           
instruments                                                                 
  Natural gas                                                               
   ($/Mcf)             5.25      6.19      (15)     5.71      3.72       53 
  Crude Oil                                                                 
   ($/Bbl)            99.78     91.64        9     96.24     84.41       14 
  Natural gas                                                               
   liquids ($/Boe)    61.69     57.56        7     59.62     48.85       22 
----------------------------------------------------------------------------
  Average realized                                                          
   price              54.08     52.79        2     53.47     45.51       17 
Drilling activity                                                           
 (gross)                                                                    
  Gas                    12        11        9        23         7      229 
  Oil                     4        20      (80)       24        38      (37)
  Total wells            16        31      (48)       47        45        4 
(1) Funds flow from operations and net debt are non-GAAP terms. Please refer
    to the advisory on Non-GAAP measures below.                             
                                                                            
(2) Excluding shares held in trust for the benefit of Trilogy's officers and
    employees under the Company's Share Incentive Plan. Includes Common     



Shares and Non-voting Shares. Refer to the notes to the interim consolidated
financial statements for additional information.


Outlook

Trilogy has continued to develop its land position and expand on its technical
expertise in large, tight, liquids-rich gas and oil resource plays in the Deep
Basin. The Company believes that it has accumulated a large inventory of high
quality horizontal drilling prospects that should provide the opportunity to
grow annual production, replace produced reserves and maintain a meaningful
dividend for its shareholders. Trilogy believes it is positioned at the end of
the second quarter to meet its annual guidance for 2014 as follows:




 - Average production               36,000 Boe/d (approx. 45% oil and NGLs) 
 - Average operating costs          $9.00 /Boe                              
 - Capital expenditures             $375 million                            



Trilogy's net debt typically peaks in the second quarter of each year due to the
fact that over 75 percent of its annual capital expenditures are incurred during
the first half of the year. Trilogy is well positioned with ample debt capacity
from its revolving credit facility which recently increased to $725 million. Net
debt is expected to be reduced through the balance of the year from increased
operational cash flow from the Company's producing assets and through continued
asset development.


In the current natural gas and crude oil commodity price environment, Trilogy
expects to manage its balance sheet through production replacement, prudent
asset management and the continued control over a significant portion of its
operations. As a growth-oriented corporation, Trilogy must remain flexible in
order to respond to changes in commodity prices. The remainder of 2014 may
finally see some stability in natural gas prices as supply and demand forces in
western Canada natural gas markets continue to balance. Trilogy believes it can
manage its assets prudently through the year as its production base trends to a
higher oil and natural gas liquids composition. Trilogy is confident in its
strategy, its high quality assets and the proven expertise of its employees.


Additional Information

A copy of Trilogy's June 30, 2014 quarterly report to Shareholders, including
Management's Discussion and Analysis and unaudited interim consolidated
financial statements and related notes can be obtained at
http://media3.marketwire.com/docs/Q2tet.pdf. This report will also be made
available at a later date through Trilogy's website at www.trilogyenergy.com and
SEDAR at www.sedar.com.


About Trilogy

Trilogy is a growing petroleum and natural gas-focused Canadian energy
corporation that actively develops, produces and sells natural gas, crude oil
and natural gas liquids. Trilogy's geographically concentrated assets are
primarily, high working interest properties that provide abundant low-risk
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".


Non-GAAP Measures

Certain measures used in this document, including "adjusted EBITDA",
"consolidated debt", "finding and development costs", "funds flow from
operations", "operating income", "net debt", "operating netback", "payout
ratio", "recycle ratio" and senior debt collectively the "Non-GAAP measures" do
not have any standardized meaning as prescribed by IFRS and previous GAAP and,
therefore, are considered Non-GAAP measures. Non-GAAP measures are commonly used
in the oil and gas industry and by Trilogy to provide Shareholders and potential
investors with additional information regarding the Company's liquidity and its
ability to generate funds to finance its operations. However, given their lack
of standardized meaning, such measurements are unlikely to be comparable to
similar measures presented by other issuers.


"Adjusted EBITDA" refers to "Funds flow from operations" in addition to cash
interest and tax expenses and certain other items that do not appear
individually in the line items of the Company's financial statements.


"Consolidated debt" generally includes all long-term debt plus the arithmetic
mean of the net working capital balance for the last two quarters (excluding
financial instrument assets and liabilities therein and as adjusted for certain
additional items that do not appear individually in the line items of the
Company's financial statements).


"Finding and development costs" refers to all current year net capital
expenditures, excluding property acquisitions and dispositions with associated
reserves, and including changes in future development capital on a proved or
proved plus probable basis. "Finding and development costs per Barrel of oil
equivalent" ("F&D $/Boe") is calculated by dividing finding and development
costs by the current year's reserve extensions, discoveries and revisions on a
proved or proved plus probable reserve basis. Management uses finding and
development costs as a measure to assess the performance of the Company's
resources required to locate and extract new hydrocarbon reservoirs.


"Funds flow from operations" refers to the cash flow from operating activities
before net changes in operating working capital as shown in the consolidated
statements of cash flows. Management utilizes funds flow from operations as a
key measure to assess the ability of the Company to finance dividends, operating
activities, capital expenditures and debt repayments.


"Operating income" is equal to petroleum and natural gas sales before financial
instruments and bad debt expenses minus royalties, operating costs, and
transportation costs. "Operating netback" refers to Operating income plus
realized financial instrument gains and losses and other income minus actual
decommissioning and restoration costs incurred. Operating income and operating
netback are used by management to measure operating results of discrete oil and
gas properties' performance without reference to capital and organizational
structure and corporate and general administrative costs.


"Net debt" is calculated as current liabilities minus current assets plus
long-term debt. Management utilizes net debt as a key measure to assess the
liquidity of the Company.


"Payout ratio" refers to dividends divided by cash flow from operations. This
measure assists in providing a more complete understanding of the Company's
ability to fund future dividends to Shareholders from cash flow from operations.


"Recycle ratio" is equal to "Operating netback" on a production barrel of oil
equivalent for the year divided by "F&D $/Boe" (computed on a proved or proved
plus probable reserve basis as applicable). Management uses this metric to
measure the profitability of the Company in turning a barrel of reserves into a
barrel of production.


"Senior debt" is generally defined as "Consolidated debt" but excluding any
indebtedness under the Senior Unsecured

Notes.

Investors are cautioned that the Non-GAAP measures should not be considered in
isolation or construed as alternatives to their most directly comparable measure
calculated in accordance with IFRS, as set forth above, or other measures of
financial performance calculated in accordance with IFRS.


Forward-Looking Information

Certain information included in this news release constitutes forward-looking
statements under applicable securities legislation.  Forward-looking statements
or information typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", "budget" or
similar words suggesting future outcomes or statements regarding an outlook. 
Forward-looking statements or information in this news release pertain to,
without limitation: expected average production volumes in 2014, the timing
thereof and the relative content of crude oil, natural gas, and natural gas
liquids therein; projected average operating costs; future capital expenditures
and the relative allocation and timing thereof; and statements regarding
management's intention to reduce debt, grow and replace production, manage its
balance sheet and its assets, control operations and pay dividends to its
shareholders. Such forward-looking statements or information are based on a
number of assumptions which may prove to be incorrect. Such assumptions include:
current commodity price forecasts for petroleum, natural gas and natural gas
liquids; current reserves estimates; current production forecasts and the
relative mix of crude oil, NGLs and natural gas therein; geology applicable to
Trilogy's land holdings; the extent and development potential of Trilogy's
assets (including, without limitation, Trilogy's Kaybob area Montney oil and gas
assets, the Duvernay Shale Gas development program, the Gething and Dunvegan oil
pools, among others); continuity of the mutually beneficial NGL Recovery
Agreement with Aux Sable Canada LP and pricing thereunder; cash flow consistent
with expectations; assumptions regarding royalties and expenses and the
continuity of government incentive programs and their applicability to Trilogy;
operating and other costs; currency exchange and interest rates; expected
timelines and budgets being met; budget allocations and capital spending
flexibility; access to capital markets and other sources of funding for
Trilogy's planned operations and expenditures; estimates of deferred tax
amounts, tax assets and tax pools; the ability of Trilogy and its partners to
achieve drilling, completion construction and other operational results
consistent with our expectations; general business, economic, and market
conditions;  the ability of Trilogy to obtain equipment, services and supplies
in a timely manner to carry out its activities; the ability of Trilogy to market
oil and natural gas successfully to current and new customers; the timing and
costs of pipeline, storage and facility construction and expansion facility
run-times; the ability to secure adequate product processing, transmission and
transportation and the timely receipt of required regulatory approvals: among
others.


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. Forward-looking
statements or information are based on current expectations, estimates and
projections that involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by Trilogy and
described in the forward-looking statements or information. These risks and
uncertainties include, but are not limited to: fluctuations of oil, natural gas
and natural gas liquids prices, foreign currency, exchange rates and interest
rates, volatile economic and business conditions, the ability of management to
execute its business plan; the risks of the oil and gas industry, such as
operational risks in exploring for, developing and producing crude oil, natural
gas and associated by-products and market demand; risks and uncertainties
involving geology of oil and gas deposits; risks inherent in Trilogy's marketing
operations, including c redit risk; the uncertainty of reserves estimates and
reserves life; the uncertainty of estimates and projections relating to future
production, NGL yields, costs and expenses; uncertainty in amounts and timing of
royalty payments and applicability of and change to royalty regimes and
government incentive programs including, without limitation, the Natural Gas
Deep Drilling Programs and the Drilling Royalty Credit Program;

potential delays or changes in plans with respect to exploration or development
projects or capital expenditures; the availability of financing; the ability to
generate sufficient cash flow from operations and other sources of financing at
an acceptable cost to fund Trilogy's exploration, development and construction
plans and repay debt; Trilogy's ability to secure adequate product transmission
and transportation on a timely basis or at all; Trilogy's ability to enter into
or renew leases; health, safety and environmental risks; the ability of Trilogy
to add production and reserves through development and exploration activities;
weather conditions; the possibility that government policies, regulations or
laws, including without limitation those relating to the environment and
taxation, may change; imprecision in estimates of product sales, tax pools, tax
shelters, tax deductions available to Trilogy, changes to and the interpretation
of tax legislation and regulations applicable to Trilogy, and timing and amounts
of reversals of temporary differences between assets and liabilities recognized
for accounting and tax purpose; the possibility that regulatory approvals may be
delayed or withheld; risks associated with existing and potential future
lawsuits and regulatory actions against Trilogy; uncertainty regarding
aboriginal land claims and co-existing local populations; hiring/maintaining
staff; the impact of market competition; and other risks and uncertainties
described elsewhere in this document or in Trilogy's other filings with Canadian
securities authorities.


The forward-looking statements and information 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 so required by
applicable securities laws.


Refer to Trilogy's Management's Discussion and Analysis for additional
information on forward-looking information.


Oil and Gas Advisory

This document contains disclosure expressed as "Boe", "MBoe", "Boe/d", "Mcf",
"Mcf/d", "MMcf", "MMcf/d", "Bcf", "Bbl", and "Bbl/d". All oil and natural gas
equivalency volumes have been derived using the ratio of six thousand cubic feet
of natural gas to one barrel of oil (6:1). Equivalency measures may be
misleading, particularly if used in isolation. A conversion ratio of six
thousand cubic feet of natural gas to one barrel of oil is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the well head. For Q2 2014, the ratio
between Trilogy's average realized oil price and the average realized natural
gas price was approximately 19:1 ("Value Ratio"). The Value Ratio is obtained
using the Q2 2014 average realized oil price of $99.78 (CAD$/Bbl) and the Q2
2014 average realized natural gas price of $5.25 (CAD$/mcf). This Value Ratio is
significantly different from the energy equivalency ratio of 6:1 and using a 6:1
ratio would be misleading as an indication of value.


FOR FURTHER INFORMATION PLEASE CONTACT: 
J.H.T. (Jim) Riddell
Chief Executive Officer


J.B. (John) Williams
President and Chief Operating Officer


M.G. (Michael) Kohut
Chief Financial Officer


Trilogy Energy Corp.
1400 - 332 - 6th Avenue S.W.
Calgary, Alberta  T2P 0B2
(403) 290-2900
(403) 263-8915 (FAX)