Significant Progress in Trillion Energy's SASB Work Program

• Trillion Energy's West Akcakoca-1 well perforations has been completed, increasing wellhead pressure to 1694 psi.
• The current production from West Akcakoca-1 now stands at 2.8 MMcf/d using a 28/64 choke, this makes the total Akcakoca platform production reaching to 7.3 MMcf/d (100% interest).
• Velocity string installations areplanned to further increase production.
• The company exploring cost-effective tubing installation methods for long-term production solutions.

Trillion Energy International Inc. (CSE:TCF) is an emerging player in the European and Turkish energy sectors, with a primary focus on oil and natural gas production. The company holds significant interests in key assets, including a 49% stake in the SASB natural gas field in the Black Sea and a 19.6% interest in the Cendere oil field. Trillion Energy is committed to supplying critical domestic natural gas to Türkiye while actively pursuing oil exploration opportunities in Southeastern Türkiye and beyond.

Perforation Success at West Akcakoca-1 Well

Trillion Energy has announced the successful completion of perforations at the West Akcakoca-1 well, located in the southwestern Black Sea's SASB gas field. This strategic operation marks a significant milestone in the company's ongoing efforts to optimize production and maximize the field's potential.

The perforation program, which faced initial delays due to weather conditions and spare parts availability, has now been fully executed. The operation involved perforating five zones, with the final three intervals totaling 4 meters. This comprehensive approach has yielded promising results, demonstrating the company's technical expertise and commitment to enhancing production efficiency.

Impressive Pressure Increases

The perforation process has led to substantial improvements in wellhead pressure (WHP), a key indicator of well performance:

1. Initial two perforated zones (5 meters of gas pay): WHP increased from 1150 psi to 1350 psi
2. Subsequent three perforated zones: WHP further increased from 1350 psi to 1694 psi

These significant pressure increases underscore the success of the perforation strategy and hint at the well's enhanced production potential.

Current Production Metrics

Following the successful perforations, the West Akcakoca-1 well is now producing at an impressive rate of 2.8 MMcf/d (million cubic feet per day). This output is achieved using a 28/64 choke, a strategic choice to maintain high pressure without negatively impacting other wells in the field.

The impact of this single well on the overall field production is substantial. The Akcakoca platform, which includes the Guluc-2, West Akcakoca-1, and South Akcakoca-2 wells, now boasts a combined production of 7.3 MMcf/d (based on 100% interest). This marks a significant step forward in Trillion Energy's efforts to boost gas supply to the Turkish market.

Velocity String Installations

Trillion Energy is not resting on its laurels. The company has outlined plans to further increase production through the installation of new tubing, specifically velocity strings, in additional wells. This technique is widely recognized in the industry for its ability to optimize production rates, particularly in wells facing liquid loading issues.

The implementation of velocity strings could potentially lead to notable production increases across multiple wells in the SASB field. This proactive approach demonstrates Trillion Energy's commitment to employing best practices and innovative solutions to maximize asset value.

Cost-Effective Tubing Installation

In a move that showcases both innovation and financial prudence, Trillion Energy is exploring more cost-effective methods for installing production tubing. Traditionally, such operations required the use of expensive jack-up rigs. However, the company is now considering the use of a snubbing unit for tubing installation.

This alternative approach offers several advantages:

1. Significantly lower operational costs compared to traditional methods
2. Increased flexibility in timing and execution of well interventions
3. Potential for faster deployment and reduced downtime

By adopting this strategy, Trillion Energy aims to provide a long-term production solution that balances technical effectiveness with economic efficiency.

Market Implications and Industry Context

Türkiye's Energy Landscape

The developments at the SASB gas field come at a crucial time for Türkiye's energy sector. As a country heavily reliant on imported energy, domestic natural gas production plays a vital role in enhancing energy security and reducing import dependencies.

Trillion Energy's efforts to increase production at SASB directly contribute to Türkiye's domestic gas supply, potentially impacting the country's energy mix and import strategies. This alignment with national energy objectives could position the company favorably in terms of regulatory support and market opportunities.

Regional Energy Dynamics

The Black Sea region has gained significant attention in recent years as a potential major gas province. Trillion Energy's success in optimizing production from existing assets like SASB demonstrates the ongoing viability and potential of the area.

As geopolitical tensions continue to impact global energy markets, the strategic importance of Black Sea gas resources is likely to increase. This trend could benefit companies like Trillion Energy that have established operations and expertise in the region.

Financial Implications for Trillion Energy

While specific financial projections are not provided in the press release, the increased production rates are likely to have positive implications for Trillion Energy's revenue streams. The company's ability to boost output without significant capital expenditure (as evidenced by the cost-effective tubing installation plans) suggests potential for improved profit margins.

Investors should note that natural gas prices and demand fluctuations will play a crucial role in determining the ultimate financial impact of these production increases.

Conclusion for Investors

For investors eyeing opportunities in the energy sector, Trillion Energy presents an intriguing proposition. The company's recent achievements at the SASB gas field demonstrate several key strengths:

• Operational Expertise: The successful perforation program and production optimization strategies showcase the company's technical capabilities.
• Strategic Asset Position: With its stake in the SASB field, Trillion Energy is well-positioned to benefit from Türkiye's growing energy needs and the strategic importance of Black Sea gas resources.
• Innovation and Cost Management: The exploration of cost-effective well intervention methods indicates a management team focused on maximizing shareholder value.
• Growth Potential: Plans for further production enhancements suggest ongoing opportunities for organic growth within existing assets.
• Market Alignment: The company's focus on supplying domestic natural gas aligns well with regional energy security objectives, potentially offering regulatory and market advantages.

However, potential investors should also consider the inherent risks associated with the oil and gas sector, including price volatility, geopolitical factors, and the evolving landscape of global energy transitions.

In conclusion, Trillion Energy's recent operational successes and forward-looking strategies position it as a noteworthy player in the Turkish energy market. For investors seeking exposure to natural gas production in a strategically important region, Trillion Energy warrants careful consideration as part of a diversified energy portfolio.