Trillion Energy poised to start re-development at SASB gas field in Black Sea as commodity prices recover

Trillion Energy International Inc (CSE:TCF) (OTCMKTS:TCFF) (FRA:3P2N), the oil and gas producer, is in talks with drilling companies over starting re-development work at its SASB gas field in the Black Sea after coronavirus (COVID-19) delayed plans last year. 

In the Phase III work program, the plan is to sink five new wells at the shallow water asset and conduct two or more workovers. 

The aim is to exploit proven and probable gas reserves with a net present value to the company after all costs of US$79.5 million. 

READ: Trillion Energy International has fair value of $0.24 per share, says Fundamental Research analyst 

“Several jack-up rigs are available in the region and the company is in the process of securing a timetable for work commencement,” the oil group said in a statement. 

“The company plans to fund the work through a combination of debt and equity capital to which it is currently evaluating opportunities to acquire same.”

Art Halleran, the group’s CEO added: “Upon the successful completion of the Phase III development, we expect to generate significant positive EBITA and cash-flow that will be used to fund a Phase IV development program for SASB planned for 2022.”

Trillion has assets throughout Turkey and Bulgaria and noted that its two producing oil and gas fields continue to generate revenue.

The Cendere field in Turkey is producing 150 barrels of oil per day (bopd) and generating about US$230,000 per month for Trillion, while the SASB gas field is producing 705 million cubic feet per day (mcf/d) and generating around US$38,000 a month for the company.

Trillion also noted that it expects oil and gas prices to continue to rebound during 2021, following historic negative oil prices in 2020 due to a sharp drop in demand as a result of the pandemic and temporary over-supply concerns. Oil prices have now returned to pre-pandemic levels.

Trillion holds a 49% interest in the SASB gas field, which was discovered at a depth of around 1,200 metres over a decade ago and has produced about 41 billion cubic feet (BCF) natural gas to date.

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Story by ProactiveInvestors