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Trillion Energy International Inc. C.TCF

Alternate Symbol(s):  C.TCF.W | TRLEF

Trillion Energy International Inc. is a Canada-based oil and gas producing company that strives to maximize shareholder value through a mix of offshore gas development and high-impact oil and gas exploration in Cudi-Gabar province SE Turkey. The Company is 49% owner of the South Akcakoca Sub-Basin (SASB) natural gas field, a natural gas development project with four offshore platforms, pipelines and gas plant located in shallow water black sea. The Company also has the Vranino 1-11 block, a prospective unconventional natural gas property in Bulgaria.


CSE:TCF - Post by User

Post by jermiah777on Aug 02, 2022 8:45pm
214 Views
Post# 34867095

Extreme Margins

Extreme MarginsTrillion is entering uncharted waters. I want to bounce this off a stock analyst to see his take on this. But for purposes of illustration, consider a company that has revenue sales of 160 million. To produce their products may have cost them 140 million. So they have 20 million profits. And their margins are perhaps average for many companies. But Trillion is economically profitable even if they sell their gas at 8$ /MCF. The company website says because all the infrastructure is in place from years ago and paid for, their costs are only 1$/MCF. SO even selling at 8$/MCF the vast majority is profit. 85% margins is unheard of...extreme. never mind selling at 32$/MCF. So to help us understand the extremely high margins, at 32$/MCF for every 160 million Trillion brought in, their costs is less than 20 million....140 million profit. Now don't quote me on this. I'm going to email my numbers to Art to get his take on it. But to help us appreciate how extremely high margins change share price...imagine A company with the same number of shares as Trillion, and they generate revenue of 160 million per year. And cost to produce is 140 million And profit of 20 million. ------- now imagine Trillion producing 160 million revenue per year. But cost to produce is 20 million . And profit is 140 million. -------- true...they both have same revenue. But margins are drastically different. It's not hard to see how share price would be drastically different. Trillion will have a drastically higher profit/ share ratio. To generate 140 million profit with average margins, usually a company would have revenue close to a billion per year. So selling their gas at 32 $/MCF would be like generating the profits of a company that has revenue of a billion or more. Yes...Trillion would have the profits similiar to a company generating a billion in rebenue...so technically market cap should be a billion...shouldnt it? So that would be 3 dollars a share...Again, will have to see how investor community will react.
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