Trillion Energy's SASB Gas Field New Perforations Yield Significant Flow Rates

Recent Developments at SASB Gas Field

Trillion Energy has recently announced significant progress in its well intervention program at the SASB gas field. The company's efforts to enhance production through strategic perforations and flow testing have yielded promising results across multiple wells. Let's delve into the details of these developments and their potential impact on Trillion Energy's future prospects.

Trillion Energy International Inc. (CSE:TCF) is an oil and natural gas company focused on production for Europe and Türkiye. The company holds a significant 49% interest in the SASB natural gas field, a promising Black Sea natural gas development. Additionally, Trillion Energy owns a 19.6% interest (9.8% in three specific wells) in the Cendere oil field. With its strategic assets and ongoing exploration efforts in southeastern Türkiye and beyond, Trillion Energy is positioning itself as a key player in the region's energy sector.

South Akcakoca-2 Well: A Success Story

The South Akcakoca-2 well has emerged as a standout performer in Trillion Energy's recent operations. The company reported successful perforations over three intervals, totaling 6.4 meters of measured depth. The results have been nothing short of impressive:

• Initial Perforation: The well head pressure (WHP) increased dramatically from 86 psi to 1046 psi immediately after perforation.
• Steady Flow Increase: Over a week, the well's flow rate showed consistent improvement:
  • July 10: 0.70 MMcf/d with a WHP of 140 psi
  • July 12: 1.2 MMcf/d with a WHP of 156 psi
  • July 14: 1.88 MMcf/d with a WHP of 312 psi
  • July 15: 2.88 MMcf/d with a WHP of 318 psi
• Stabilization: By July 24, the well had stabilized at a production rate of 1.94 MMcf/d with a WHP of 371 psi, using a 42/64" choke.

This progressive increase in flow rate and stabilization at a significant production level demonstrates the success of Trillion Energy's intervention strategy. The company's ability to "blow the water out of the well" and allow previously water-blocked reservoirs to produce gas is a testament to the effectiveness of their techniques.

Guluc-2 Well: Promising Initial Results

The Guluc-2 well has also shown encouraging results following perforation operations:

• Perforation Details: The well was perforated across four intervals, totaling 7.7 meters of measured depth.
• Pressure Response: The WHP increased from 650 psi to 1243 psi before settling at 1098 psi, indicating a strong gas presence in the newly perforated zones.
• Production Testing: Initial flow tests were conducted using a 64/64" choke, resulting in a WHP of about 350 psi.
• Impressive Production: As of July 24, Guluc-2 was producing 3.35 MMcf/d with a WHP of 484 psi using a 32/64" choke.

The rapid pressure build-up and strong production rates from Guluc-2 suggest that this well could be a significant contributor to Trillion Energy's overall gas production from the SASB field.

West Akcakoca-1 Well: Work in Progress

While operations on the West Akcakoca-1 well are still ongoing, initial results are promising:

• Partial Completion: Two out of five planned zones have been perforated, covering 5 meters of gas pay.
• Positive Pressure Response: The WHP increased from 1150 psi to 1350 psi after perforating just two zones.
• Future Potential: With three more gas zones totaling an additional 4 meters yet to be perforated, the company anticipates further improvements in production from this well.

The observed pressure increase in West Akcakoca-1, even with partial perforation, bodes well for the well's future performance once all planned zones are completed.

Akcakoca-3 Well: Addressing Water Loading Issues

The Akcakoca-3 well presents a different scenario:

• Extensive Perforation: 11 meters of gas pay were perforated.
• Water Loading Challenge: No observable WHP increase was noted, likely due to water loading at 315 meters depth.
• Production Outlook: The company expects the well to produce about 2 MMcf/d once a velocity string (2 3/8" production tubing) is installed.

While the initial response from Akcakoca-3 was not as dramatic as other wells, Trillion Energy's plan to install a velocity string demonstrates their proactive approach to overcoming production challenges.

Technological Advancements and Future Plans

Trillion Energy's success in the SASB field is not just a result of fortunate geology but also stems from their strategic use of technology and forward-thinking planning:

• Perforation Techniques: The company's ability to precisely target and perforate specific intervals has been crucial in accessing previously untapped gas reserves.
• Flow Testing and Monitoring: Continuous monitoring and adjustment of flow rates and well head pressures allow for optimal production management.
• Velocity Strings: The planned installation of smaller production tubing (2 3/8") is expected to extend the productive life of the wells by several years before water loading becomes an issue again.

These technological applications showcase Trillion Energy's commitment to maximizing the value of their assets through innovative solutions.

Market Implications and Financial Outlook

The recent developments at the SASB gas field have significant implications for Trillion Energy's market position and financial outlook:

• Increased Production Capacity: With multiple wells showing improved flow rates, the company's overall gas production is set to increase substantially.
• Revenue Growth Potential: Higher gas production volumes are likely to translate into increased revenues, especially in the current high-demand European energy market.
• Operational Efficiency: The success of the well intervention program demonstrates the company's ability to enhance production from existing assets, potentially reducing the need for costly new drilling operations.
• Market Valuation: As news of these successful operations spreads, it may positively impact Trillion Energy's stock price and overall market valuation.

Environmental and Regional Considerations

Trillion Energy's focus on natural gas production in the Black Sea region aligns with several broader environmental and geopolitical trends:

• Transition Fuel: Natural gas is often viewed as a crucial transition fuel in the shift away from more carbon-intensive energy sources like coal and oil.
• European Energy Security: With ongoing geopolitical tensions affecting energy supplies to Europe, Trillion Energy's production increase could contribute to regional energy security.
• Türkiye's Energy Landscape: The company's success could play a role in reducing Türkiye's dependence on imported energy, potentially impacting the country's energy policies and economic outlook.

Risks and Challenges

While the recent announcements from Trillion Energy are overwhelmingly positive, investors should also be aware of potential risks and challenges:

• Geological Uncertainties: Despite current successes, future well performance can be unpredictable due to the complex nature of subsurface geology.
• Market Volatility: Natural gas prices can be volatile, affecting the company's revenue even if production remains stable.
• Regulatory Environment: Changes in energy policies or regulations in Türkiye or the broader European market could impact operations or profitability.
• Operational Risks: Offshore gas production comes with inherent risks, including potential equipment failures or environmental incidents.

Conclusion for Investors

Trillion Energy International Inc. presents an intriguing opportunity for investors interested in the natural gas sector, particularly those focused on the European and Turkish markets. The company's recent successes in the SASB gas field demonstrate:

• Technical Competence: The ability to significantly enhance production through well interventions showcases the company's technical expertise.
• Asset Quality: The strong response from multiple wells suggests that the SASB field is a high-quality asset with substantial untapped potential.
• Growth Prospects: With several wells showing improved production and others still undergoing work, there's a clear path for near-term production growth.
• Strategic Positioning: Trillion Energy's focus on natural gas production for the European market aligns well with current energy trends and geopolitical realities.

For those comfortable with the risk profile of small-cap energy companies, Trillion Energy's recent operational successes and strategic positioning make it a company worth watching. As always, investors should conduct their own due diligence and consider their individual risk tolerance and investment goals before making any investment decisions.

In conclusion, Trillion Energy's recent announcements paint a picture of a company on the cusp of significant growth, backed by tangible operational successes. While challenges remain, the company's progress in the SASB gas field positions it as an interesting player in the European energy landscape, potentially offering value to investors looking for exposure to the natural gas sector in a strategically important region.