Trillion Energy (CSE:TCF) - Gas Production Growth & Exploration Upside

Рет қаралды 4,771

18 күн бұрын

Interview with Dr. Arthur Halleran, President & CEO of Trillion Energy
Our previous interview: www.cruxinvestor.com/posts/tr...
Recording date: 1st May 2024
Trillion Energy presents a compelling opportunity for investors seeking exposure to a growing international natural gas producer. The company's core asset is the SASB gas field offshore Türkiye, where it holds a 49% interest. SASB has 55 billion cubic feet (BCF) of proven gas reserves and is currently producing 3.3 million cubic feet per day (mmcf/d) net to Trillion. And now, the company has a low-cost plan to significantly boost production and cash flow in the near-term.
Trillion is executing a well workover program at SASB to replace the tubing in existing wells with a smaller diameter. This will reduce water loading and allow the wells to flow at higher rates. The company is also perforating new pay zones in the wells that had not been previously produced. These initiatives are expected to increase production to 7-8 mmcf/d, which would generate $2-3 million per month in revenue net to Trillion at current gas prices of $10-12/mcf in Türkiye.
The beauty of the SASB program is its simplicity and low cost. Trillion estimates the workover and perforation activities will cost just $400,000 net to the company, but will have an outsized impact on production and cash flow. With its 55 BCF of proven developed reserves, SASB offers a long-term production runway.
To fund the SASB program and improve its balance sheet, Trillion is selling its non-operated 19% interest in the Cendere oil field in Türkiye. Proceeds will allow Trillion to move forward debt-free, and key creditors have agreed to defer obligations until the gas production enhancements are complete.
Beyond SASB, Trillion has several high-impact exploration prospects that could meaningfully boost reserves. The company plans to drill the West Akcakoca-1 well in late 2023 to test a large gas target on modern 3D seismic. A discovery would derisk additional prospects on the block. Trillion is also seeking a partner to drill the 200 million barrel Derecik Zagros Basin Oil prospect in Southeastern Türkiye.
The macro environment for gas in Türkiye is highly favorable. The country imports 98% of its gas needs and demand is growing. Current gas prices of $10-12/mcf are well above global benchmarks, providing Trillion with netbacks of over $9/mcf after costs. Prices are expected to rise further to $13-14/mcf as Türkiye's import contracts expire in the coming years.
In summary, Trillion offers investors a unique opportunity to gain exposure to Türkiye's growing gas market at an attractive entry point. Near-term production growth from SASB, balance sheet improvement, and long-term exploration upside make the company a compelling investment proposition. Investors can look forward to a steady stream of catalysts in the coming months as the SASB program is executed and the drill bit turns on high-impact exploration wells.
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View Trillion Energy's company profile: www.cruxinvestor.com/companie...
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Пікірлер: 16

@marcgerges1380 12 күн бұрын

This man took advantage of his shareholders, with a 10 to 1 roll back .

@indsov2010 17 күн бұрын

Great update. Very much appreciated! Now let's go Trillion!

@mrgilmour18 16 күн бұрын

Oil drilling in south east Turkey pushed to 2025!!! This guy is unbelievable!!

@seancochlan2613 16 күн бұрын

Great interview! Long over due. Waiting for year end to see if luck goes Trillions way.

@Juznik1389 3 күн бұрын

I like the prospects since the inception of the company and I still own a lot of shares. But something needs to change. The stock won't be touched as it stands like right now...