Trillion Energy Begins Production Ramp Up Amidst Historic NatGas Prices Explains CEO Art Halleran

Posted on November 3rd, 2022 | Filed under Exclusive Interviews, Mining News

Mining Stock Education · Trillion Energy Begins Production Ramp Up Amidst Historic NatGas Prices Explains CEO Art Halleran

Trillion Energy (CSE: TCF – OTCQB: TRLEF – Frankfurt, Z62, Forum) has successfully commenced production with its multi-well drilling program on the SASB natural gas field in the Black Sea. The Uranus Rig is situated at the Akçakoca platform where it has been drilling the first few wells. A total of three directional wells will be drilled from the Akçakoca platform, plus one recompletion of an existing well will occur.

Trillion just announced successful flow test results for the South Akcakoca-2 natural gas well at SASB gas field, offshore Turkey. The final log evaluation identified a total of 32.9 metres of natural gas pay within 5 sands in the Akcakoca Member. Two of the lower sands (D, C) were perforated over a combined interval of 22.1 metres MD. The well was then flow tested into the SASB production facilities at 7.0 – 8.2 MMcf/d with a 32/64” choke. Reservoir pressure built up to 1690 psi during shut in. The full 22.1 metres perforation interval is currently undergoing a long-term production test into our facilities.

The well was in line with expectations and based on known production characteristics of historical gas wells at SASB. Final production flow rates will be provided when measurement at the onshore gas processing facility is completed. The additional upper interval of 10.8 metres of pay identified through logs as gas bearing sands will be perforated in the future after the production for the initial interval starts to decline.

Arthur Halleran CEO of Trillion stated: “The results from the flow-test in the lower intervals are in line with our expectations for the South Akcakoca-2 gas well. We are very pleased that the first of our multi-well program has been completed successfully. This is an excellent start to our program.”

After the work at the Akçakoca platform, the Uranus rig will move to the next of the three platforms at SASB to continue the work program. The Company has plans to drill/complete these initial 7 wells followed by another estimated 10 wells prior to further exploration occurring.

Arthur Halleran, CEO stated: “The commencement of drilling operations marks a transformative step towards the Company’s bright future, with drilling to lock in much-needed locally sourced gas supplies for the winter months at prices over US$30/mcf. These long reach advanced engineering production wells will allow gas production to immediately be sold under our existing gas contract where we get paid monthly and can then use the revenues to continue to drill new wells.”

The Company’s development program initially includes seven production wells coming online during a time when acute natural gas shortages are menacing Europe and Turkiye. Drilling of additional ten targets are expected to follow. Natural gas prices continue to spike, breaking historical records as the prospect of a cold winter looms with the worst shortages expected yet to come.

Trillion is an oil and gas producing company with multiple assets throughout Turkiye and Bulgaria. The Company is 49% owner of the SASB natural gas field, one of the Black Sea’s first and largest-scale natural gas development projects; a 19.6% (except three wells with 9.8%) interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.

Trillion Energy also has tremendous blue-sky potential on its natural gas license areas which it is currently seeking to expand. The company’s SASB gas field is located just 100km south of the largest gas discovery (19 TCF+) in 30 years in Europe and is the only nearology play in the region. Art is planning to test the most prospective structures he has identified in 2024 and beyond.

0:00 Introduction

2:14 Trillion Energy Overview

4:32 South Akcakoca-2 well successfully completed

9:45 SASB production economics

11:15 Undervaluation argument

12:40 Russian & Turkey to form European NatGas hub

13:53 Share price commentary

14:56 Feedback from institutions?

15:38 Interest from corporates?

16:40 Next steps?

Company presentation: https://trillionenergy.com/wp-content/uploads/2022/11/Trillion_Energy_Intl_Corporate_Presentation_NOV_2022-V5.pdf

Recent Press Release: https://trillionenergy.com/2022/11/01/trillion-energy-announces-successful-flow-test-results/