Trillion Energy [TCF-CSE; TRLEF-OTCQB; Z62-Frankfurt] is focused on natural gas production in Europe and Turkiye with natural gas assets in Turkey 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 has been operating in Turkey since 2014 and has achieved significant success in the exploration and production of natural gas. The company’s strategy has been to focus on the Black Sea region, where there are substantial untapped reserves of natural gas. This strategy has paid off in spades, with Trillion Energy becoming one of the leading producers of natural gas in the region.
One of the key accomplishments of Trillion Energy has been its ability to thrive in the face of the global energy crisis. While prices have declined from their peaks, Trillion Energy is still producing natural gas in the highest-priced gas regime on the planet. In Turkey, gas prices are at $17 USD per cubic meter, compared to $4 USD per cubic meter in the United States, $12 USD per cubic meter in Europe and Asia, and $5 USD per cubic meter in South America. Despite these high prices, Trillion Energy has continued to increase its production levels, highlighting the company’s resilience and adaptability.
In fact, Trillion Energy had a blockbuster year in 2022, almost tripling its proved reserves to 63 billion cubic feet (BCF) and increasing its reserves values by 700% to up to $500 million USD (discounted – NPV10) and $800 million USD undiscounted net cashflows after royalty, operating costs, and capital expenditures. Trillion Energy is now 4 for 4 for new wells, having made three new discoveries over the last six months and converting resources to reserves, which has significantly increased the reserve report values. The company plans to drill seven more new wells in 2023, demonstrating its continued commitment to growth and innovation.
Trillion is currently drilling well number 5 “Bayhanli” of a 15+ well program on the SASB. The program has been successful so far with strong production numbers in each well: NPV-10 increases by 426%: Estimated proven reserves increased slightly to 11.6 bcf, with 2.7 bcf of proven undeveloped reserves, reclassified as proven producing. Probable reserves increased by 330% to 37.1 bcf as three of the four successful wells drilled to date targeted contingent resources. Overall, 2P reserves increased by 130% to 48.6 bcf. An additional 35.7 bcf (218% increase) is in the possible reserves category. The before-tax net present value (“NVP-10”) of the 1P reserves value increased by 206% to US$123.8mm on the back of a higher natural gas price forecast. The NVP-10 of the 2P reserves value increased by 426%to US$431.5mm (C$1.50/sh) on new reserves additions and a higher price deck.
Additional highlights of Trillion include: recent Analyst reports from both “8 Capital” who put a 1.50$ price target on Trillion and “Mackie Research” who put a 1.35$ price target on Trillion and recently press released reconfirmation of the target. Trillion just announced the closing of a 15MM$ convertible debenture facility through 8 Capital as well. (Click here for the full news release) This additional funding is going to allow for working capital and capital expenditures related to the development of the company’s assets in Turkey.
TCF drilling campaign has been highly successful as the company has proven that long reach directional drilling technology is effective at targeting existing and new reserves directly from the production platform. We expect significant reserves additions as the company drills an additional 16 wells in the balance of 2023 and into 2024 and we expect stock price appreciation as the Company continues to build its production and cash flow base.