TRILLION's Near FutureRemember last fall when Trillion started out with getting revenue from first well, they received 20 US MCf. But as the European gas prices rose, they dragged up the price of gas in turkey. So we had an announcement that Trillion will be selling their gas for 30% more. Clearly European gas prices do influence price of gas in turkey. Well it will happen again. We just had a 20% increase in european gas prices in one day. To help us understand how quickly gas prices could rise, look at the 6 month chart, and then the year chart for european gas prices. They had a high of 350 Euro / Mwh. To convert that to US /Mcf you times it by 1.07 to get US dollars. And then divide by 3.4
So 350 Euro/Mwh = 110 US / Mcf. And just 6 months ago we were 140 EUR/Mwh which is 44 US / Mcf.
Clearly the prices could go up quickly. But we are getting 14 US/Mcf which is fantastic. The price of gas in turkey usually is more than Europe. But as europe's price goes up, it will drag up price in turkey. As the hot weather of june july and august descend on europe, its not hard to see the price going up to 50 Euro/Mwh. And then with winter approaching and the need to top up all reserves, a 100 is a very real possibility. A 100 Euro/Mwh = 31.5 US / Mcf. At this price certainly their would be an announcement that Trillion will be getting a substantial increase for their gas now. So I think we can relax and enjoy the ride from now to january.