Trillion Energy kicks off SASB gas development project in the Black Sea
Trillion Energy International Inc said it has started drilling preparation work for its first two South Akcakoca Sub-Basin (SASB) development wells, with capital provided from company sources.
The oil and gas producer, which owns 49% of the SASB natural gas field in the Black Sea, also announced it is triggering the acceleration provision in all outstanding stock and purchase warrants issued during 2020 to provide additional working capital for the drilling program.
Trillion Energy said it has about C$1 million in cash on hand. On top of that, its interest in the Cendere oil field in Turkey has generated, in the first five months of 2021, gross revenue of US$1.36 million and is on track to generate around US$3 million in gross revenue for the full year. In April, it signed a letter of intent (LOI) with a US investment fund to obtain up to US$17.5 million in new financing.
“Preparation work for the drilling of the first two SASB development gas wells will commence immediately,” Trillion Energy said in a statement.
“The Saturn rig is available now and it is the company’s intention to use the Saturn rig to drill the two shallow water wells, and the Uranus rig to drill the three deeper water wells.”
The Saturn project is expected to cost US$9 million and will take slightly over two months to complete. It will target the two discovered unproduced gas pools Alapli and Bayhanli, both of which were drilled, mapped, and drill stem tested +7 million cubic feet per day (MMcf/d) gas from similar 15 metres of perforated gas reservoirs. Both discovery wells had an additional four to five gas reservoirs that were not tested, adding further gas potential.
To ensure the first well at SASB is spudded in the fourth quarter of 2021, the company said the capital required for the Saturn project long lead items will be obtained from alternative sources not related to the April 2021 financing, which remains ongoing.
As its share price had closed about C$0.25 per share since March 8, 2021, Trillion Energy said it had the option of giving notice to warrant holders to accelerate the terms of warrants issued last year. If all the warrants are exercised, the proceeds will provide up to an additional C$3.5 million to advance the company’s drilling goals. The deadline for holders to exercise their warrants is August 6, 2021.
Trillion Energy has multiple assets in Turkey and Bulgaria. In addition to the SASB natural gas field, it has a 19.6% (except three wells with 9.8%) interest in the Cendere oil field, and a 100% interest in a 42,833-hectare oil exploration block covering the northern extension of the prolific Iraq/Zagros Basin.
In Bulgaria, the company has an interest in the Vranino 1-11 block, a prospective unconventional natural gas property.
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Published: 06-07-2021
