Trillion Energy Targets Major 2025 Natural Gas Production Growth in Turkey

• Trillion Energy completed installation of new velocity string tubing in Alapli-2 and Bayhanli-2 wells in January 2025, following tubing installation in four Akcakoca platform wells in fall 2024.
• Six wells have now received new smaller tubing to mitigate water loading; tripod wells continue to receive nitrogen injection but stable long-term flow rates not yet sustained.
• Company preparing to stimulate Akcakoca-3 and South Akcakoca-2 wells and has sourced a gas lift compressor system for the Akcakoca platform.
• Trillion plans to install artificial lift systems including a progressive cavity pump and two slim-hole electric submersible pumps in upcoming months to optimize well performance.
• Presentation highlights multi-well development program targeting ~17+ production wells, aiming to increase production to 7 mmcf/d by Q2 2025.

Trillion Energy International (CSE:TCF) provided an operational update on the SASB natural gas field, one of the company's key projects located in the Black Sea offshore Turkey. The SASB field is 49% owned by Trillion, with the other 51% interest held by Turkish Petroleum Corporation (TPAO).

Trillion Energy is an oil and natural gas company focused on projects in Turkey and Europe. In addition to its 49% stake in the SASB offshore gas field, Trillion holds a 19.6% interest (except three wells at 9.8%) in the Cendere oil field in Turkey.

SASB Well Interventions

Trillion completed installation of new velocity string tubing in the Alapli-2 and Bayhanli-2 wells located on tripods. This follows the installation of new tubing in four wells on the Akcakoca platform in fall 2024. With these latest installations, a total of six SASB wells have now been equipped with smaller diameter tubing to help alleviate issues with water loading.

The tripod wells at SASB continue to undergo nitrogen injection to stimulate gas production. However, while both Alapli-2 and Bayhanli-2 initially showed positive responses, they have not yet demonstrated stable flow rates for an extended period.

Upcoming Activities

Trillion is currently preparing to perform well stimulation using nitrogen on the Akcakoca-3 and South Akcakoca-2 wells, which it aims to carry out in the coming week subject to suitable weather conditions offshore.

To assist with gas lift operations, Trillion has sourced a compressor system for the Akcakoca platform which will enable continuous gas injection into certain wells. This artificial lift method helps improve recovery of gas reserves by providing energy to drive fluids up the wellbore.

Further efforts to enhance production at SASB that are planned in the coming months include:

• Installing a progressive cavity pump (PCP) in a well
• Deploying two slim-hole electric submersible pumps (ESPs)

Development Program Overview

Trillion's provides additional context on the company's growth plans at SASB. It outlines a multi-well development program targeting approximately 17 or more production wells. Five new wells were drilled in 2023, with four or more workovers planned for 2024 at a cost of $2.7 million.

The company's near-term goal is to ramp up production to 7 million cubic feet per day (mmcf/d) by the second quarter of 2025. Longer term, Trillion sees potential to steadily boost output, reaching a targeted exit rate of 14-16 mmcf/d, by implementing artificial lift systems, performing new well perforations, and drilling additional sidetrack wells.

Reserves Growth

Trillion's 49% interest in SASB conventional gas reserves saw substantial growth over the prior year:

• Total Proved (1P) reserves rose from 10.1 billion cubic feet (Bcf) to 18.0 Bcf
• Proved plus Probable (2P) reserves increased from 42.5 Bcf to 55.8 Bcf
• Proved plus Probable plus Possible (3P) reserves expanded from 73.7 Bcf to 96.6 Bcf

The net present value discounted at 10% (NPV₁₀) of Trillion's SASB 2P reserves was assessed at $420.5 million at year-end 2023, up from $431.5 million the prior year. NPV₁₀ of 3P reserves was $712.7 million.

For Investors

With its 49% interest in the SASB gas field, Trillion Energy offers investors exposure to the European gas market through a multi-well development located offshore Turkey in the Black Sea. The company has been actively working to optimize production from existing wells through velocity string installations and nitrogen stimulation. These efforts, combined with upcoming artificial lift installations, aim to boost recovery rates and overall field production volumes.

While the recent well interventions have seen some initial uplift, the key will be translating those gains into stable, long-term flow rates. Trillion appears to have a solid growth plan laid out through the rest of this decade, targeting a meaningful increase to 7 mmcf/d by mid-2025. With European gas prices expected to remain elevated, the company seems well positioned to benefit as it expands development.

Continued reserves growth at SASB provides a larger resource base to underpin Trillion's production plans. The company more than doubled its proved reserves in 2023, with sizable increases in both 2P and 3P reserves as well. Based on the year-end third-party assessment, even just the 2P reserves offer substantial value at over $420 million (NPV₁₀).

For investors seeking international E&P exposure, Trillion's SASB gas field offers compelling potential catalysts to steadily boost production into a premium-priced European market. With a rising reserves base and development drilling program, the company appears well funded to keep advancing this key project. Ongoing updates as the well intervention and artificial lift programs progress will be key items to monitor.