Trillion Energy Strategic Enhancements for Long-Term Production Growth at SASB Field

• Trillion Energy has successfully installed velocity string tubing in two tripod-based wells at its SASB gas field, completing a six-well enhancement program aimed at mitigating water loading issues.
• The company is deploying multiple artificial lift solutions including a gas lift compressor system for the Akcakoca platform and various pump technologies to maintain long-term production rates.
• With an NPV10 of $421 million and 55.8 BCF of proved plus probable reserves, Trillion is targeting production increases to 7 mmcf/d for Q1 2025.
• The SASB field benefits from Türkiye's strategic position as the 7th largest natural gas consumer globally, with 98% of gas needs met through imports at attractive prices of USD$9/MCF.
• Beyond its gas assets, Trillion is advancing a high-impact oil exploration project in the Cudi-Gabar Province of Southeast Türkiye, where recent seismic data collection has been completed.

Trillion Energy Internationa, a Canadian-based natural gas producer focused on European and Turkish energy markets, announced significant operational progress at its SASB offshore gas project in the Black Sea. The company's March 18 update detailed the successful completion of velocity string installations in two tripod-based wells, Alapli-2 and Bayhanli-2, following similar upgrades to four wells on the Akcakoca platform during fall 2024.

The velocity string program represents a critical technical enhancement for Trillion's production infrastructure. By installing smaller-diameter tubing, the company aims to address water loading issues that commonly affect natural gas wells as they mature. Following installation, the wells underwent nitrogen injection to evacuate water, lower bottom hole pressure, and stimulate gas production - with management reporting positive responses from the wells.

"This follows the installation of similar tubing in four wells on the Akcakoca platform during the fall of 2024. In total, six wells have now been upgraded with the new smaller-diameter tubing to mitigate water loading and enhance production efficiency."

Implementing Advanced Artificial Lift Technologies

Building on these results, Trillion is deploying multiple artificial lift solutions tailored to specific well conditions. The company has secured a gas lift compressor system for the Akcakoca platform that will enable continuous gas lift injection into select wells. Before deployment offshore, the system will undergo testing on an onshore natural gas well, with modifications including piping, cabling, inverter, and separator installations.

"Testing is scheduled to begin with final mobilization to the platform expected the following week. High pressure nitrogen injection is planned after the installation of the gas lift compressor to stimulate production," according to the said company release.

Additionally, Trillion is implementing specialized pump solutions including one Progressive Cavity Pump (PCP) and two slim-hole Electric Submersible Pumps (ESPs) attached to the new tubing. These technologies represent significant investments in sustaining long-term production capabilities from the field.

The combination of velocity strings and artificial lift technologies forms part of a comprehensive $2.7 million production optimization program designed to increase gas flow rates from existing wells before proceeding with new sidetrack wells planned for later in 2025.

SASB Field Development Strategy & Timeline

According to the company's presentation, Trillion Energy has outlined a structured development timeline for its SASB operations through 2025. The company has completed drilling six wells in 2022-2023, which are now in production, and plans to execute four or more workovers in 2024-2025.

The current work program focuses on perforation and velocity string installations for four wells (Guluc-2, South Akcakoca-2, West Akcakoca-1, and Akcakoca-3) in Q3-Q4 2024, with two additional wells (Alapli-2 and Bayhanli-2) receiving velocity strings by Q1 2025. Three more wells (East Ayazli-1, East Ayazli-2, and Akcakoca-5) will have artificial lift systems installed in 2025, followed by the commencement of a sidetrack well program.

This methodical approach aligns with Trillion's production targets, which project an increase from the current 5-7 MMcf/d to 7-8 MMcf/d by Q2 2025, and potentially reaching 14-16 MMcf/d with the planned sidetrack wells. Each new sidetrack well is estimated to cost approximately $4 million (at 49% interest to Trillion).

Reserve Growth & Financial Position

Trillion Energy's reserve position has strengthened considerably. Proved plus probable (2P) reserves increasing to 55.8 BCF up from 42.5 BCF at the end of 2022. The company reports an NPV10 (net present value discounted at 10%) of $420.5 million for these 2P reserves. The company's total proved, probable, and possible (3P) reserves stand at 96.6 BCF, with an NPV10 of $712.7 million.

Türkiye's Strategic Gas Market

A key advantage for Trillion Energy's SASB development is Türkiye's position as the seventh largest natural gas consumer in the world, with annual consumption exceeding 48 billion cubic meters. The country imports approximately 98% of its natural gas needs, creating a strong domestic market with favorable pricing.

Gas prices in Türkiye were reported at USD$9/MCF as of March 2025, significantly higher than many other markets. The country's fiscal regime is also favorable, with a 12.5% royalty rate and 22% corporate tax rate.

Türkiye's strategic position between Europe and Asia, combined with its extensive pipeline infrastructure, provides a stable market for Trillion's production. The SASB field is directly tied into the national natural gas pipeline grid, allowing for efficient delivery to market.

High-Impact Oil Exploration in Southeast Türkiye

Beyond its natural gas operations, Trillion Energy is pursuing oil exploration opportunities in the Cudi-Gabar Province of Southeast Türkiye. The company's exploration block M47c3,c4 is positioned near recent high-impact discoveries, including the Sehit Aybuke Yalcin field (reported 1 billion barrels OOIP) and Sehit Esma Cevik field (250 million barrels OOIP).

Trillion has completed 2D seismic data collection over the block and is processing the results to identify drilling targets. The company plans a 10-well program targeting potential discoveries of 10,000-100,000 bbl/day, with wells expected to cost USD$3.5 million each (gross 100%).

The region represents a significant petroleum province extending from neighboring Iraq and Syria, with multiple oil fields containing substantial recoverable reserves. If Trillion makes a commercial discovery, production could potentially begin quickly, with initial oil transported by truck to the Tüpraş Batman oil refinery approximately 130 km away.

Infrastructure Assets & Development Potential

A significant aspect of Trillion's SASB operation is the extensive existing infrastructure, which represents over $600 million in historical investment. The company operates four offshore production platforms and tripods connected via an 18km subsea pipeline to an onshore gas processing facility.

The processing facility is rated for 75 MMcf/day and can be expanded to 150 MMcf/day, providing ample capacity for future production growth. The company holds a 12,387-hectare development lease valid until 2031, which is extendable to 2041.

This infrastructure enables Trillion to focus capital on well enhancements and new drilling, rather than building costly new facilities. The existing platforms can reach drilling targets within approximately 3km, allowing access to multiple potential gas accumulations from the current positions.

Conclusion for Investors

Trillion Energy represents an investment opportunity in an established natural gas production asset with material reserves and infrastructure in place. The company is executing a focused operational strategy to increase production through both technical optimizations and new well development. With proven plus probable reserves valued at over $420 million against a market capitalization of only approximately $5.55 million, there appears to be a significant valuation gap.

Investors should consider several factors when evaluating Trillion Energy:

• The company is implementing a clear, phased approach to production optimization with near-term catalysts expected from the artificial lift program.
• The SASB field benefits from high natural gas prices in Türkiye ($9/MCF) and low royalty rates (12.5%), potentially supporting strong margins.
• The existing infrastructure significantly reduces capital requirements for future development, allowing for more efficient deployment of investment.
• The oil exploration program in Southeast Türkiye represents a potentially high-impact opportunity that could substantially change the company's production and reserve profile.
• Despite reserve growth and operational improvements, the share price has remained at modest levels, creating a potential value opportunity for resource-focused investors.

As with any small-cap energy company, investors should conduct thorough due diligence and consider the risks associated with international operations, commodity price fluctuations, and potential funding requirements for future development programs.