Trillion Energy Provides Operational Update and Growth Outlook

About Trillion Energy

Trillion Energy is a natural gas and oil producer operating in Turkiye. The company's key assets include a 49% interest in the SASB natural gas field in the Black Sea and a 19.6% interest in the Cendere oil field. SASB was one of the first major natural gas discoveries in the Black Sea and remains a large-scale producing asset.

In addition to its production and development assets, Trillion holds exploration rights on several promising oil blocks in northeast Turkiye. The company is dual-listed on the Canadian Securities Exchange and Frankfurt Stock Exchange.

SASB Field Optimization Underway to Boost Near-Term Production

Trillion Energy is executing a work program to optimize SASB field production. The goal is to enable concurrent production from all 6 existing SASB wells. Trillion sees near-term potential to significantly increase SASB output through relatively low-cost optimizations.

Initiatives underway include installing compression facilities, accessing additional gas pay zones through re-perforation, implementing artificial lift, and seeking expert guidance on overall operational enhancements.

Collectively, these efforts aim to reduce wellhead pressures, lower water loading, and overcome infrastructure bottlenecks. Trillion believes optimized well designs, surface equipment, and field operations could boost SASB production above 15,000 Mcf/d by year-end 2023.

2023 Exit Rate Guidance Reflects Impact of Optimization

Based on the optimization program, Trillion expects to exit 2023 with gross SASB production above 15,000 Mcf/d. After royalties, the company's net share would be approximately 7,500 Mcf/d. Including minor oil output, Trillion's total net production may reach 8,100 Mcfe/d by year-end.

At current commodity prices, this exit rate could generate $37 million in annualized operating netbacks. For a company of Trillion's size, this level of cash flow provides financial flexibility to fund growth.

Fully-Funded $35 Million Capital Budget to Add 5 More SASB Wells

Building on its SASB optimization progress, Trillion has budgeted $35 million for further development and exploration in 2024. The budget consists of:

• $26 million for 5 additional SASB wells to increase producing wells from 6 to 11
• $9 million for seismic shooting and 2 exploration wells on Trillion's new oil blocks

This program is designed to be fully funded from existing cash resources and potential equity financing if required. It provides a balanced approach to boosting near-term gas output while unlocking future oil potential.

Additional Wells Expected to More Than Double 2024 Production

With 5 new wells slated for 2024, Trillion forecasts average SASB production can reach over 23,000 Mcf/d next year. Exit guidance is nearly 31,000 Mcf/d. This double digit production growth reflects the impact of Trillion's expanded SASB well count and optimization efforts.

At current commodity prices, Trillion's 2024 operating netbacks could exceed $80 million. This reinforces the cash flow funding capability from Trillion's expanded SASB production base.

Conclusion

Trillion Energy presents an attractive investment opportunity for several reasons. First, the company is actively optimizing its existing SASB gas wells to maximize near-term cash flows. Efforts underway should boost output above 15,000 Mcf/d by year-end 2023.

Second, Trillion plans to drill 5 additional SASB wells in 2024, more than doubling its production base. With 11 wells online, average guidance for 2024 is over 23,000 Mcf/d, increasing to nearly 31,000 Mcf/d by exit 2024. This ramp-up can generate $55-81 million in operating netbacks at current commodity prices.

Finally, Trillion is expanding into oil exploration in southeast Turkiye, providing investors with exposure to potentially high-impact drilling in 2024. Between cash flow from its SASB gas field, near-term production growth, and new oil upside, Trillion Energy offers a compelling leveraged play on Turkiye's low-cost hydrocarbon resources.

For investors seeking oil and gas exposure with operational catalysts and significant growth potential, Trillion Energy warrants strong consideration. The company has the assets and plan to potentially double production over the next year while maintaining a strong balance sheet. As Trillion proves up more resources, unlocks value from its land position, and expands into new areas, its upside for investors may be substantial.