At the halfway mark of the year, Trillion Energy International Inc. (CSE:TCF; OTCQB:TRLEF Frankfurt:Z62) is making significant headway on its offshore natural gas work program at the SASB Gas Field.
SASB spans 12,000 acres and is located offshore in the Republic of Turkiye in the Black Sea where Trillion Energy has successfully drilled six offshore natural gas wells producing C$17 million in revenue in 2023 and boosting its reserves by a third.
After successfully reaching goals for the current program, the company further plans exploration for crude oil in Southeast Türkiye.
While the program is currently in progress, significant milestones have already been made to ensure safety and operational efficiency.
SASB Work program progress to date
When we last wrote about Trillion Energy, the company was in the midst of kickstarting its work program on eight wells at the SASB gas field and has since made significant progress.
The program, which officially started in June 2024, is what the company calls “a groundbreaking initiative aiming to optimize and significantly boost natural gas production, a prospect that we are all eagerly looking forward to.”
Notably, the first phase of perforation operations will occur on the Akçakoca platform, which includes Guluc-2, South Akcakoca-2, West Akcakoca-1 and Akcakoca-3 wells.
By July 2, pre-Work HSE Safety Induction took place while R/U and PCE wireline equipment arrived at the Akçakoca platform, which signifies an important step in the company’s marking the SASB Work Program because these tools are key in perforating additional gas pay and optimizing natural gas production.
PCE wireline means “pressure control equipment wireline” and includes devices such as blowout preventers (BOPs), lubricators and wellhead control systems that manage well pressure.
In the days after that, Trillion Energy also conducted thorough pressure tests to ensure the integrity and proper function of the entire setup, which included sealing the system, applying pressure, inspecting for leaks and verifying the functionality of all components.
Additionally, all-day operations to rig up the Welltec tractors and prepare perforation guns on the Akçakoca platform took place on July 6. Also on July 6, on the South Akçakoca-2 Perforation, the company proceeded with caution despite weather conditions to run in hole (RIH) for the SA-2 perforation. On July 10, the second well perforations were completed for Guluc-2.
In a recent press release, the company shared flow test results for the South Akçakoca-2 well.
On July 15, the well’s flow rate was 2.88 million cubic feet per day, a notable increase from July 10. The company expects the flow rate to stabilize and reach its optimal flow rate in the upcoming weeks after the perforations have blown a significant amount of water out from the well cleaning up the reservoir and allowing for improved gas production.
On July 24, the company announced the well’s flow rate had stabilized to 1.94 million cubic feet after Guluc-2 started producing. In further good news for investors, Guluc-2 is currently flowing at 3.35 million cubic feet. There’s more to come from West Akcakoca-1 which has two perforated zones consisting of 5 metres gas pay with three more zones to be tested, while Akcakoca-3 had another 11 metres of gas pay perforated and requires a velocity string before gas production will occur.
Next steps at SASB work program
In the coming days and weeks, Trillion Energy revealed that its operations are dependent on favourable weather conditions.
“While we have plans in place, adverse weather may cause delays,” the company stated. “We are closely monitoring forecasts and will adjust our schedule as necessary to ensure the safety of our operations and personnel.”
Trillion Energy gas & oil reserves
Trillion’s proved plus probable (“PP” or “P2”) Natural Gas and Oil Reserves were valued at US$420.5 million in its year-end reserve report announced April 25, 2024. The PP Conventional Natural Gas reserves increased to 55.75 billion cubic feet (bcf) up from 42.5 bcf, an increase of 31 per cent from 2022.
As CEO Art Halleran stated at the time, “Very little of the gas from SASB has been produced to date, and we are committed to monetizing our reserves through artificial lift and tubing size optimization in the near future.”
That “near future” has arrived, as key wells are not being reperforated for gas flow at this time.
The investment corner
It goes without saying that Trillion Energy is vastly undervalued based on its peers as it continues advancing its SASB Work Program and planning towards crude oil exploration.
In line with this, with the program officially underway and a solid plan in place to execute its goals, investors can expect steady news flow throughout the summer months from the company as it continues updating on its operational progress.
Trillion Energy also continues to prove itself thanks to its notable track record in the region and high reserves, and – in a favorable energy business region such as Türkiye – the company has significant potential to add even more to its reserves and production.
Join the discussion: Find out what everybody’s saying about this stock on the Trillion Energy International Inc. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Trillion Energy International Inc., please see full disclaimer here.
(Top photo of an oil well offshore of Turkiye: Trillion Energy)
This article was modfied on July 24, 2024 to incorporate the company’s latest update.
