Timing Is EverythingTiway, the original owners paid over $600m (2005 dollars) to install the platforms and infrastructure. All 4 platforms will very soon enter a new phase of operating as Trillions cash machine and for what else is planned. Once all the 4 Platforms are operating as planned, then Art can ask to have Trillions Acountants prepare the required documents. If approved, then an appropriate value will be assigned for the assets and then, "moved onto Trillions books" ... likely and legal.
I think we should accept that having all this working infrastructure ready and willing is enormous for shareholders. What is the value of not waiting 1 or 2 years to build what we already have? This is a much bigger deal than given credit for. We are within weeks of moving right into production ...and missing most of the "construction phase of the project" ... anyone estimate the cost of Trillion having to pay for the 4 platforms and infrastructure in todays dollars? At the end of the day ... the value of the assets is also weighed in their readniness and ability to expand capacity....
I can say I was surprised that we had two large financings over such a short period of time. I expected we would strive to assume some form of debt or instrument that would bring us to the magic number for Plan A Wells to become operational. A large percentage of shareholder equity secured both these financings. The eventual float of common shares will be close to 350m shares outstanding (assumes warrants are excercised). It is also nice not to have to service a large debt and allow net operating income to roll right down to Free Cash Flow line at the bottom...The margins we are going to achieve over the first 6 months of production is unheard of ...85% margin ....and the price paid for the natural gas has more than doubled over the last year...that is a big deal for shareholders of any company when their "product" doubles in value.
But thats not the best of it ... I see that our website uses USD for valuations. So when we convert the american dollar into canadian (our trading currency), we are entitled to a 25% exchange rate when we convert to canadian dollars. This conversion allows us to add 25% to value projections in the Trillion Videos in particular to share price projections ...
I was very happy that Art spoke twice about the "blue sky" potentials we would want to pursue off our block. I will be a very excited shareholder the day they announce they "secured leases" for the blocks holding Art's "seismic anomalies".... or I just call them Whales. Our partners appear to value exploration as they discovered the Tuna Pool and continue to move the project forward. If there is a chance for Turkish Petroleum to be partnered in another discovery that is "Trillion" in size instead of "Billion" ... Turkish Petroleum knows the value of having the exstensive seismic support, years of analysis and another asset often overlooked : Dr. Halleran has served as a director of Trillion Energy since October 4, 2011. He has a Ph.D. in Geology from the University of Calgary and 40 years of petroleum exploration and development experience. Trillion has a long standing positive relationships within Turkey.
I sincerely hope that one or two of these large anomalies are targeted right after the first phase is completed. When to assess the risks / rewards ... one could develop a very strong thesis to push for at least one of the anomalies? There is huge shareholder value in testing these anomalies as soon as possible. The planned exploratory drilling for Program 2 is likely going to discover similar gas pools as we have already for production in Program 1. What is the likely "shareholder value" of one of these large pools? ... It has been said that one of these anomalies could be worth multiples of all the gas that Trillion will ever produce from our current block! ... I can at least hope. About 2 years ago, in one of Arts first video's the comentator said that he had spoken to one of our largest shareholders and was told that he is not selling any shares until the "whales" have been explored! A very wise investor and he peaked my curiosity. Like him, I will not sell shares until after Art goes whale hunting... A discovery of one whale .... will likely change some shareholders lives forever.
Can you imagine if all 4 of the anomalies turn out to be pools of gas?
Soon, the Trillion Team will have the Program 1 underway and they will turn their attention to looking at the Bulgarian Project, securing the Off Block Permits for future whale hunting.., and I would not be surprised that Art is looking at other opportunities for a soon to be cash positive machine.
The video is the latest updates from Art. Thank you to AwareInvestor for posting it.
https://thedeepdive.ca/trillion-energy-7-0-million-in-free-cash-flow-per-month-in-the-near-term/