Trillion Energy International Inc. (CSE: TCF) has confirmed a 27.6-million-barrel light-oil discovery in southeastern Türkiye, one of the world’s most active new oil trends. The company holds a 29% working interest in the M47 Concession, where an independent report by Chapman Hydrogen and Petroleum Engineering Ltd. assigns an unrisked NPV-10 of roughly US$733.5 million to the confirmed discovery, rising to approximately US$1.4 billion across the block’s three leads, net to Trillion’s interest. With a confirmed discovery, a defined 2026 drilling program, and a strengthened balance sheet, the company is positioning itself for active newsflow.
This article is disseminated in partnership with Trillion Energy. It is intended to inform investors and should not be taken as a recommendation or financial advice.
A high-growth oil basin in Southeastern Türkiye
Trillion’s flagship M47 block sits in the Cudi-Gabar oil region of southeastern Türkiye, near the borders of Iraq and Syria. Following a series of significant discoveries by the Turkish state oil company TPAO, the area has rapidly become the country’s most active oil-producing trend. Fields that did not exist a few years ago now produce more than 80,000 barrels per day from ancient carbonate reservoirs that extend up from Iraq and Syria.
The block’s proximity to established production strengthens its geological and commercial appeal. It lies approximately 11 kilometres from the Şehit Aybüke Yalçın field, a major discovery estimated to hold roughly one billion barrels of oil in place, and it targets the same Beloka and Mardin carbonate reservoirs that drive the region’s largest fields.
Drilling results have reinforced the prospectivity of Trillion’s acreage. The company’s Çetinkaya-1 well drilled in 2025, confirmed 32.4° API light oil and 38 metres of net pay within carbonate reservoir systems that mirror those found in adjacent producing fields. Independent assessment has outlined a 2C contingent resource for the discovery, with total unrisked resource potential across the block’s three primary prospects estimated at over 50 million barrels net, carrying a combined unrisked NPV-10 of approximately US$1.4 billion.
Infrastructure and fiscal advantages
In addition to its resource potential, the M47 project benefits from favourable infrastructure and fiscal conditions. Offtake is straightforward: oil can be trucked roughly 130 kilometres to the Tüpraş Batman refinery, allowing revenue from the first commercial barrels, while a regional pipeline with capacity above 150,000 barrels of oil equivalent per day is now operative, its first tie-in at a neighbouring field about six kilometres away. Türkiye’s fiscal regime further enhances project economics, with a relatively moderate 12.5% royalty rate and a 25% corporate tax rate.
The macro backdrop is supportive as well. Türkiye imports more than 85% of its crude, historically much of it from Russia and Iran, so every domestic barrel carries both an economic and a strategic premium. The project is entirely onshore, giving it zero exposure to the Strait of Hormuz or Red Sea shipping lanes, and national policy continues to prioritize domestic oil and gas development, particularly in the southeast, where drilling activity has intensified.
Financing strategy tied to core asset development
Trillion is conducting a non-brokered private placement for gross proceeds of up to US$2 million to strengthen its balance sheet and advance its core asset. The proceeds are directed primarily toward the company’s near-term work obligations under its Farm-In Agreement on the M47 Concession in southeastern Türkiye.
Those obligations form part of a broader US$9.5 million funding requirement, representing Trillion’s share of the 2026 work program. Should the placement not be fully subscribed, the company has indicated that funding will be prioritized to meet its M47 commitments and maintain operational continuity.
Portfolio transition and operational enhancements
Trillion has tightened its balance sheet ahead of the drilling program. It recently moved approximately US$22 million of legacy liabilities off its books while retaining a 7% overriding royalty on future production from the associated assets, preserving residual upside without the operating burden and leaving the company focused on the M47 oil program.
Looking ahead, the company plans to deploy a new drilling approach in upcoming drilling operations. This approach is intended to mitigate historical drilling challenges in the basin, enhance well productivity, and improve overall operational efficiency, factors that could play a critical role in unlocking the value of its resource base.
The planned 2026 work program reflects this forward-looking approach. It includes sidetracking the Çetinkaya-1 well, drilling at the Mid and South Leads, and additional seismic work to further de-risk the project and refine resource estimates.
Leadership insights
“This financing provides the near-term capital needed to meet our M47 commitments and advance what we believe is one of the most compelling light oil exploration opportunities in Türkiye today,” Trillion Energy’s President, Scott Lower, explained in a media release. “We welcome both new and existing shareholders to participate at what we view as an attractive entry point ahead of active drilling operations.”
Valuation considerations
On a per-barrel-of-resource basis, Trillion trades at a steep discount to its peers. Recent figures value the company at roughly US$0.21 for each barrel of its 2C contingent resource, or near US$0.91 on a fully-financed basis, against comparable regional oil and gas companies in the range of US$1.45 to US$3.41 per barrel. Management attributes the gap to the early stage of the company’s onshore oil program and limited market awareness rather than to the underlying asset, and regards both as addressable as the drilling program advances.
With shares up more than 80% since the start of the year, market interest appears to be building. As with any exploration-stage company, investors should conduct their own due diligence on how Trillion’s financing, drilling timeline, and regional positioning could affect its valuation over time.
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