Trillion Energy (TCF.C), a Canadian oil and gas producer operating in Europe and Turkey, released 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 five sands in the Akcakoca member.
Two of the lower sands (D,C) were perforated over a combined interval of 22.1 metres MD. Flow tests at that well into the SASB production facilities ran at seven to 8.2 MMcf/day with a 32/64-inch choke. Reservoir pressure built up to 1,690 psi during shut in.
These results fell within expectations and based on known production characteristics of historical gas wells at SASB. Final production flow rates will be released when measurement at the onshore gas processing facility is completed.
Arthur Halleran, CEO of Trillion, commented, “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 multiwell program has been completed successfully. This is an excellent start to our program.”
There is a planned 17 gas well development program at SASB from 2022 to 2024 with tested and proved discoveries planned to be drilled, completed and put into production 2022-2023.
This planned program is fully funded with one well drilled approximately every 45 days over the initial 24 months.
Projected monthly cash flow (EBITDA) for Phase A & B of the SASB drill program is expected to produce $7.6 million USD by June 2024.
Trillion’s efforts at SASB are anticipated to reduce Europe’s dependency on Russian gas.
SASB provides more near field low risk exploration opportunities with 13 additional exploration targets proximate to platforms.
Currently SASB has proved and probable reserves of 20.25 BCF at an NPV of $75.75 million with a 10% discount, and a proved, probable and possible reserve of 31.4 BCF at an NPV of $129.2 million with a 10% discount.
SASB is a shallow water conventional gas field consisting of four gas pool reserves and numerous development gas pools with very good seismic, geophysical, geological and expansive engineering data to de-risk exploration efforts.
Trillion has two more projects in its portfolio, Cendere Oil Field located in southeast Turkey and the Vranino 1-11 gas project located in northeast Bulgaria.
The gas producer reported $23.50 million in cash and cash equivalents as of June 30, 2022 and oil and gas revenues of $1.5 million for the three months ending June 30, 2022 for a net income $46,246 for the same quarter.
Trillion currently trades at $0.48 CAD per share, up 150% year to date, for a market cap of $174.93 million.
