Trillion Energy Explores Strategic Expansion While Maintaining Strong Offshore Position

• Trillion Energy (CSE:TCF) discusses recent changes in strategy and progress.
• Emphasis on SESB as both a cash engine and technical driver; successful gas production.
• Introduction of a significant oil property continuation in Iraq/Syria with potential 600 million Barrel Fields.
• Offshore drilling remains part of the plan; focus on gas production and exploring new opportunities.
• Onshore assets present cost advantages with potential for substantial oil fields; plans for seismic surveys and drilling in 2024.

About Trillion Energy

Trillion Energy is an oil and gas production company focused on the Black Sea and Bulgaria. The company holds a 49% interest in the Cendere oil field, with near-term plans to drill new wells and recomplete existing wells. Trillion also has a 100% interest in three offshore exploration licenses.

Interview with President & CEO, Arthur Halleran

New Onshore Opportunity in Turkey

In a recent interview, Trillion Energy CEO Arthur Halloran discussed the company's strategic decision to acquire onshore oil and gas assets in Turkey, while maintaining focus on its core offshore operations.

According to Halloran, Trillion has always planned to supplement its offshore production with a large onshore exploration play that could substantially increase reserves and value. The newly acquired onshore blocks in Turkey represent a massive opportunity, adjacent to recent major discoveries by the Turkish national oil company TPAO.

Several giant fields containing estimated hundreds of millions to billions of barrels of oil have been discovered by TPAO within 10-15km of Trillion's new blocks. While these government reported numbers may be inflated for political purposes, the sheer size and proximity indicates enormous potential. Additionally, numerous smaller yet still significant discoveries of 250-300 million barrels dot the surrounding area.

Halloran believes the combination of nearby massive fields and smaller satellite discoveries, plus interpreted anticline structures extending onto Trillion's acreage could harbor traps containing anything from 5 million to 50+ million barrels. The easternmost block in particular has no seismic yet, so large structures could be hiding. For an initial commitment of just 10 wells and 340km of 2D seismic, Trillion has acquired an opportunity to tap into a highly prolific petroleum system.

Optimizing Offshore Production

At the same time as pursuing this high impact onshore play, Halloran emphasized Trillion remains fully committed to optimizing its offshore gas production. After drilling successful wells, the company has gained invaluable knowledge on how to enhance performance and cost efficiencies.

For example, Halloran explained how newer wells are exhibiting higher gas rates and pressure than originally expected. This has created some short-term challenges with managing production across older and newer wells through the shared processing facility. However solutions like adding ESP pumps are being implemented to maximize output.

Looking ahead, Trillion will conduct in-depth seismic analysis to identify the best remaining drilling locations, then target another phase of development potentially starting in mid-2023. Further innovations like drilling longer horizontal wellbores into reservoir sections will boost productivity and reserves. The company anticipates being able to double current production levels of 14 mmcf/d once facility bottlenecks are resolved.

At current gas prices, Trillion is generating around $2.3 million per month net revenue. With enhancements, this could increase to $4 million monthly, while drilling costs are only around $1 million per well. After funding near term workovers and an ESP pump, cash flows will accumulate allowing the company to self-fund a robust multi-well drilling program in 2024.

Prudent Strategy Provides Options

Rather than rushing full speed ahead on either offshore or onshore, Halloran believes Trillion has wisely created flexibility in its plans. The company can adapt spending and activity based on results from seismic analysis, production data and economic conditions.

If new offshore seismic reveals larger targets, additional offshore wells may take priority over accelerated onshore work. And with minimal upfront commitments onshore, Trillion can scale that project based on early well results.

This dual-track approach provides shareholders with solid low-risk gas production plus substantial upside from an exciting oil exploration portfolio. As milestones are achieved, investors could see significant value creation.

5 Key Takeaways

1. Pursuing high-impact onshore oil exploration in Turkey adjacent to massive discoveries.
2. Committed to optimizing existing offshore gas production and cashflows.
3. Prudent strategy provides flexibility to adapt plans based on results.
4. Dual-track approach balances low-risk production and exploration upside.
5. Milestones in next 12-24 months could lead to significant share price re-rating.

Conclusion

For investors seeking oil and gas exposure balanced by near-term cash flows and world-class exploration potential, Trillion Energy presents a compelling opportunity. Management's disciplined and adaptable strategy maximizes chances for success. As results unfold in the coming 12-24 months, shares could re-rate substantially higher. Contact a broker today to consider adding Trillion Energy to your portfolio.

‍