Trillion Energy (CSE:TCF OTC:TRLEF) has been nothing short of busy over the course of 2023 drilling six successful offshore natural gas wells and entering into a farm-in agreement for oil exploration in Türkiye.
Over the summer, Trillion entered into a farm-in agreement to earn a 50 per cent working and revenue interest in three oil exploration blocks.
The blocks make up 151,484 hectares in the newly defined Cudi-Gabar petroleum province of Southeastern Türkiye and are proximate to several new major discoveries.
To earn its 50 per cent interest, Trillion Energy must acquire roughly 351 kilometres of 2D seismic in 2023 and four drill wells next year.
“This farm-in opportunity developed as Trillion’s Türkiye subsidiary Park Place has a reputation of being a very technically competent company that executes its work programs with a high degree of success,” Arthur Halleran, CEO of Trillion Energy, said in a statement.
Farm-in obligations
With that in mind, additional farm-in obligations for Trillion Energy’s exploration include:
- Drilling three additional wells in 2024 for a total cost of US$12 million at 100 per cent cost to the company
- During 2025, drilling three exploration wells for a total cost of $9 million, with Trillion Energy paying 50 per cent of that cost
- In 2026, three exploration wells will be drilled for a cost of $9 million, with 50 per cent of that cost payable by the company.
Trillion will be the operator of these works and future development.
“We are excited about the exploration opportunities considering recent discoveries made in the province proximate to the Eastern Block. Wells drilled to date in the southwest of our targeted area have good to very good oil staining and asphalt in the rocks. This indicates a working petroleum system on the Eastern Block where oil has been generated and migrated within the system,” Halleran said.
Trillion’s Black Sea natural gas development program
Last year, Trillion raised more than $42 million to drill gas wells in the Black Sea during the height of the energy crisis gripping Europe.
The natural gas wells were successfully drilled over the last 11 months resulting in three new discoveries and a total of six new producing wells in the Black Sea.
In a statement, Halleran said that after successfully completing six wells, the company’s focus will now be maximizing the production of the wells and targeting parity with historical production rates through system tweaks and other means of resolving production bottlenecks.
“We have now engaged a third-party provider to provide a quotation and recommendations for increasing production from the six wells. The important takeaways will provide guidance for standard operating procedures in the next phase of SASB gas wells,” he said.
SASB Gas field Map
Trillion’s focus is on increasing production on the existing six wells to match production rates previously achieved from the eight legacy wells. The company stated the past production history will serve as a useful analog for predicting future production trends and results.
Trillion’s Black Sea block is in the Southwestern basin proximate to Greece and Bulgaria, as shown in the map below.
The investment corner
With the company’s roots firmly planted in Europe and Türkiye, Trillion Energy will be a force to be reckoned with in the region’s energy production.
Notably, Türkiye is the seventh largest natural gas consumer in the world – with most of its imports coming from Russia and Iran at 60 per cent – which means having a company like Trillion Energy with boots on the ground in the region will be vital moving forward.
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