News Trillion Energy Starts the SASB Gas Development ProjectThe Prep work for the Saturn Rig Drilling of Two Gas Wells has started to ensure Spud 4th Qtr 2021
VANCOUVER, British Columbia and ANKARA, Turkey, July 06, 2021 (GLOBE NEWSWIRE) -- Trillion Energy International Inc. (“Trillion” or the “Company”) (CSE: TCF) (OTC: TCFF) (Frankfurt: 3P2N) has started the drilling preparation work for the first two SASB development wells, with capital provided from Company sources. In order to provide additional capital for the drilling program, the Company is triggering the acceleration provision in all outstanding Common Stock Purchase Warrants (the "Warrants") issued during 2020. Those Warrants must be exercised on or before 30 days from the date of this news release, being August 6, 2021 (the "Deadline").
The Company currently has about CND $1 million in cash on hand. Additionally, the Company’s interest in the Cendere Oil field has generated, in the first five months of 2021, gross revenue of US $1,358,577 and is therefore on track to generate approximately >US $ 3 million for 2021 in gross revenue.
Preparation work for the drilling of the first two SASB development gas wells will commence immediately. 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 (the "Saturn Project"), 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 2 months to complete.
The Saturn Project will target the two discovered unproduced gas pools Alapli and Bayhanli, both of which were drilled, mapped, and drill stem tested +7 MMcf/d gas from similar 15 metres of perforated gas reservoirs. Both discover wells had an additional 4 to 5 gas reservoirs that were not tested adding further gas potential.
To ensure the first well at SASB is spudded in 4th Qtr., 2021 the capital required for the Saturn Project long lead items will be obtained from alternative sources not related to the previously announced $17.5 MM financing LOI announced in April 2021 which remains ongoing.
The Warrants issued in 2020 contain the following language: “In the event that company’s share prices close at a price of CAD $0.25 per share for a period of 10 consecutive trading days on the Canadian Security Exchange or such other stock exchange on which the Common Stock are listed or quoted, the Company will that the option to provide notice to the warrant holders in writing or via press release to accelerate the term of the warrant to a period of 30 days following such notice."
As share price has been above CAD $0.25 since March 8, 2021, and in connection with the drilling expenses of the Saturn Project, the Company is electing to accelerate all Warrants issued in 2020. Those Warrants must be exercised on or before the Deadline. If not exercised prior to the Deadline, those Warrants issued in 2020 will automatically expire. If all the Warrants are exercised, the proceeds will provide up to an additional CAD $3.5 million to Trillion to advance its drilling goals. Management of the Company has decided that it is in the best interest of the Company to move expeditiously with respect to the start of the gas development drilling of SASB, while waiting for further documentation which has been delayed due to COVID-19.
About the Company
Trillion Energy is an oil and gas producing company with multiple assets throughout Turkey and Bulgaria. The Company is 49% owner of the SASB natural gas field, one of the Black Sea’s first and largest scale natural gas development projects; a 19.6% (except three wells with 9.8%) interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.
For further information, please see our website: www.trillionenergy.com or email us: info@trillionenergy.com
The Company’s NI 51-101 and other reports relating to its reserves as of December 31, 2020 are filed on www.sedar.com, www.thecse.com, as well as the Company’s website.
Contact
Art Halleran: 1-250-996-4211
Corporate offices: 1-778-819-1585
e-mail: info@trillionenergy.com
Website: www.trillionenergy.com