Trillion Energy's Commences SASB Work Program & Financing Set Stage for Renewed Investor Interest

• Trillion Energy commences work program at SASB gas field in Turkey over two-month period
• Operations involve 7-8 wells including perforating 49m of gas pay in 4 wells and installing velocity strings
• Velocity strings expected to improve well performance and stabilize long-term production
• Trillion announces non-brokered private placement of up to $1.8M at $0.09/unit with $0.18 2-year warrants
• Funds to pay interest on debentures, investor awareness, working capital and settle $450k in debt

About Trillion Energy

Trillion Energy International Inc. (CSE:TCF) is an oil and gas production company focused on the SASB gas field in the Black Sea offshore Turkey. The company's asset holds significant untapped reserves and offers substantial development potential. Trillion Energy is executing on a prudent strategy to increase production and reserves through redevelopment of existing wells and further development drilling.

Commencing SASB Gas Field Work Program

On May 23, 2024, Trillion Energy announced it has kicked off an important two-month work program at the SASB gas field. The program will be conducted in several phases and targets seven to eight wells, including the six wells drilled and completed in 2022-2023 as well as several older wells that have experienced water loading issues limiting their production capacity.

The work program is focused on improving well performance and stabilizing production for the long-term. A key element is installing gas velocity strings in the wells. Velocity strings restrict the amount of water entering the tubing, preventing "loading up" of the well with water which chokes back gas production. By mitigating the impact of water on well productivity, the velocity strings are expected to optimize production rates and enhance long-term stability of gas output.

To support the work program, Trillion has ordered approximately 16,500 meters of velocity strings, new well heads and associated equipment. Tangibles are being progressively delivered to the company's shore base near the Akcakoca port. Service contractors have been lined up for key elements of the work scope including perforations, well tractors, tubing running services, and vessels for transporting equipment the 14 km from shore to the offshore platforms.

June Operations - Perforation & Initial Velocity String

Operations in June will focus on the Akcakoca platform and four key wells - Guluc-2, South Akcakoca-2, West Akcakoca-1 and Akcakoca-3. The first order of business will be perforating 49 meters of net gas pay that was identified across these four wells. Perforation operations should commence by the middle of June.

After perforating, Trillion will run an initial velocity string in the Akcakoca-3 well. This is expected to be the first step in a systematic process of velocity string installation across the bulk of the SASB wells. Running the first string will provide valuable insights to optimize the process for subsequent installations. The June scope is expected to span approximately 20 days.

July Operations - Velocity Strings & Pumps

Following the initial velocity string in AKK-3, subsequent strings will be run in the other wells on the Akcakoca platform as well as two satellite tripod platforms. The July program envisions running velocity strings in at least six wells.

Additionally, some of the older SASB wells that were not part of the 2022-2023 drilling campaign may require pump installation to optimize production. Pumps can help wells unload water more effectively. The decision to install pumps will be made on an as-needed basis depending on well performance.

Non-Brokered Private Placement

In tandem with the operational update, Trillion Energy announced a non-brokered private placement to raise up to $1.8 million. The company plans to issue up to 20 million units at a price of $0.09 per unit. Each unit will consist of one common share and one warrant exercisable at $0.18 per share for a two-year period.

The warrants will include an acceleration clause. If Trillion's shares trade at or above $0.35 for seven consecutive trading days, the company will have the option to accelerate the expiration of the warrants.

Existing Trillion shareholders will have an opportunity to participate in the private placement via the "Existing Shareholder Exemption". As of the close of business on May 23, 2024, shareholders are each entitled to invest up to $15,000. If aggregate subscriptions under the Existing Shareholder Exemption exceed the maximum offering size, subscriptions will be adjusted pro rata.

Use of Proceeds

Trillion intends to use the proceeds of the offering as follows:

• Up to $100,000 to cover the offering costs and commissions
• $900,000 to pay the semi-annual interest due on outstanding debentures
• Approximately $250,000 for investor awareness programs
• $450,000 to settle certain company debts
• Remainder to working capital

Completion remains subject to approval of the Canadian Securities Exchange, with potential for additional closings until the offering is fully subscribed. All securities issued will be subject to a four-month hold period.

Conclusion

The SASB work program and private placement mark important steps in Trillion Energy's ongoing efforts to optimize production and capitalize on the potential of its Turkish gas asset. Installing velocity strings and pumps in existing wells should allow the company to maximize the value of past drilling investments. Conducting perforations on previously drilled but uncompleted pay zones can also yield incremental production gains in a highly capital efficient manner.

The proceeds of the private placement will provide a cash infusion to address near-term priorities like debenture interest payments while still leaving funds to support ongoing operations. Importantly, the placement will allow Trillion to settle a meaningful chunk of outstanding debt, strengthening its balance sheet.

For investors, the news provides reassurance that Trillion remains proactive in moving its asset forward despite a challenging macro environment for natural gas. The SASB work program reflects a prudent, returns-focused approach to building production and cash flow while the private placement shores up the company's financial flexibility. If the velocity strings and other well optimizations achieve their intended impact, Trillion could be well-positioned to deliver improved operating and financial metrics in the coming months.

As the work program advances, investors should watch for updates on the production impact of the various well interventions. Execution of the private placement will also be a key milestone to track. With its prospective Black Sea gas position and proactive management, Trillion is a company that might be worth further examination for investors seeking potential undiscovered value in the international oil and gas producer arena.