Trillion Energy International Inc. has reported second-quarter revenue of $5.8 million (CAD 7.8 million), up 288 percent from the same period in 2022.
Trillion posted operating income of $613,232 for the three months ended June 30, compared with an operating loss of $616,660 for the three months ended March 31, 2022, it said in a recent earnings release.
For the second quarter of 2023, the company also closed a convertible debenture financing for gross proceeds of approximately $11 million (CAD 15 million).
On the operations side, Trillion said it successfully drilled five long-reach directional wells and a new completion at the SASB gas field in the Black Sea offshore Turkey. To increase production, Trillion engaged a service provider to submit recommendations for a thin-bore electric submersible pump, power cables, pump control surface equipment and electrical power supply for West Akcakoca-2 and Akcakoca-3, and the company will select an option at the end of August. The company will redrill South Akcakcoa-2 at approximately the same time, followed by Guluc-2, according to the statement.
Trillion said its goal is to increase production from the six existing wells to match production rates previously achieved from the eight legacy wells. To predict future production at the three tripod gas fields of Akkaya, East Ayazli and Ayazli, Trillion evaluated past production profiles and assumed that these represented an average case for Trillion’s five newly drilled wells and the only which had to be completed again.
“The historical production of the tripod [commencing 2007] an average of 15.4 MMcf/d [million cubic feet per day] for 34 months [gross]after which production went into a hyperbolic decline and had an average daily production of 12.95 MMcf/d over the next 12 months and an average daily production of 6.88 MMcf/d over the following 12 months and of 4.1 MMcf/d during the next 12 months. and then continued for many more years at >2 MMcf/d,” Trillion reported.
Gross gas production from the SASB gas field averaged 8.16 MMcf/d in the second quarter, up 2.42 MMcf/d, or 42 percent, from the figure in previous quarter of 5.74 MMcf/d.
At the end of the quarter, the company had five producing wells, with each well producing an average of 1.5 months during the quarter, Trillion said.
“After successfully completing six wells, our focus is now on maximizing production from the wells by targeting parity with historical production rates, through system adjustments and other means to resolve production bottlenecks ” said Arthur Halleran, President and CEO of Trillion. “We have now engaged an external supplier to provide a quote and recommendations to increase production from the six wells. The important data will provide guidance for standard operating procedures in the next phase of the SASB gas wells.
In a separate press release, Trillion announced the results of its Alapli-2 well flow test. According to the company’s operational update, “Alapli-2 has 32 meters of total gas pay in the A, B, C and D sands of the Akcakoca Member, which is 22.7 meters thicker than the offset Alapli-1 well .A thickness of 15.1 meters of gas pay measurement was drilled and tested at Alapli-2, 9.1 meters of ‘A’ sand and 6 meters of ‘D’ sand. A combined flow rate of ‘11.9 MMcf/d via a 24/64 “”.
“Nearly a year ago, we began drilling in the SASB gas field using advanced drilling technology to reach previously unreachable gas pools,” Halleran said in the statement. “We are pleased with the results of the first drilling campaign in SASB and believe that our success in the field will continue. We look forward to opening a new dimension with the evaluation of stratigraphic gas prospects in the SASB block and maximizing drilling yields in SASB. Revenue generated from SASB gas production will now create a material cash balance and be used for other businesses.”
Earlier this month, Trillion announced a farm deal for three oil exploration blocks in southeast Turkey with Derkim Poliuretan Sanayi ve Ticaret. The company said it aims to earn a 50 percent working and revenue interest in three oil blocks comprising 151,484 hectares (374,325 acres) within the newly defined Cudi-Gabar oil province in southeast Turkey , by acquiring 218 miles of 2D seismic data in 2023. and drilling four wells in 2024.
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