RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:BLACK GOLD inviolablspirit wrote: At the moment, from my calculations Trillion is currently bringing in about $2.3 million on the existing 3 wells and has a monthly burn rate of approximately $1.2 - $1.3 million. Significantly lower monthly burn rate with phase A drilling complete. During drilling I think the company was spending about $6 million per month. However, they were also getting much higher gas prices, so it worked out well for them during their phase A drilling.
That would mean the company is currently banking about $1 million per month at the current gas price. Once they clear the water in the pipline with the pumps to release pressure on the gas that could possibly add another15mcf for about 25mcf total ($4.3 million per month for their share of the gas). At that point, the company could be banking after monthly expenses about $3 million per month.
The completion of the pumping I would think may take some time October/November. This will certainly fund the onshore oil exploration which drilling should start sometime in Q2 of next year. Of course, the monthly revenue after expenses will be determined by the success of the water pumps which is the long term fix and the fluctuation of gas prices.
I think those timelines and amounts should be about right. I believe new seismic for the SASB will be availabe in September which they will use to get a better look at how they can reduce costs and proceed with the next phase for SASB. And since the next phase is being put off to a later date, I would think it is possible that any equipment that the company ordered and has in storage that they don't need right now and can easily be repurchased at a later date could possibly be sold off for additional cash if needed. So I don't think funding the onshore exploaration is going to be a problem at all for the company. Given where they are drilling onshore it sounds like a high chance of hitting a decent size oil field. All of this just takes time.
Great post....a good analysis of the current situation according to your calculations Trillion energy is banking about 1.000.000 bucks CLEAR per month AFTER expenses....once flow rates are fixed around 4.00.000 million per month this will happen in the next few months....but don't forget INSANE gas prices as WINTER approaches....expect MORE PROFIT than you think...