Trillion Energy Comments on Natural Gas Price Increases

Natural Gas prices increase to historic highs of US$13.07/MCF

VANCOUVER, British Columbia, Jan. 11, 2022 (GLOBE NEWSWIRE) -- Trillion Energy International Inc. (“Trillion” or the “Company”) (CSE: TCF) (OTC: TCFF) (Frankfurt: 3P2N) recently received a price increase for sale of natural gas to approximately USD $13.07/mcf amid seasonal supply shortages and strong regional demand. The price increase was effective January 2022.

In contrast this USD $13.07/mcf, the average natural gas sale price received during 2021 was approximately USD $8.84/mcf.

The Company believes a trifecta of circumstances have resulted in the sudden sharp price increase, which include increased demand due to a cold winter, alternate energy sources being shut down (such as several nuclear power plants in Germany), delays in increased supply of natural gas from the Nord stream pipeline etc. The Company believes peak demand for natural gas will not occur for some time and that natural gas is the single most viable long-term solution for European energy over the next 20 + years.

The Company most recently assessed its natural gas resources and reserves effective October 2021, when natural gas prices ranged between $8-10 USD. As its year end is December 31, the Company has recently commenced a new assessment of its year end reserve and resource values where it expects the recent price increases to favorably impacted the resulting economics.

Art Halleran CEO stated:

“The recent high gas prices illustrate the high value and strategic focus of the SASB natural gas redevelopment to Trillion. The Company is in the process of negotiating an MOU for the rig for drilling to commence sometime later this year. This year we expect to be transformative bringing significant value to shareholders.”

Details of material change in reserves and resources effective October 31, 2021

On October 31, GLJ Ltd. assessed the reserves and resources associated with the Company’s natural gas field SASB. The Corporation announced an update to its reserves and resources for the South Akcakoca Sub-Basin ("SASB") Gas Field pursuant to an independent evaluation of the gas reserves and prospective gas resources for exploration prospects (the "Report") prepared by GLJ Ltd. ("GLJ"), an independent third-party consulting firm, which resulted in an increase in the net present value ("NPV") of reserves and resources that Trillion is targeting in its 2022 development plan.

The Corporation has confirmed that, to the best of its knowledge, all information provided to GLJ is correct and complete as of the effective date. The Reports was prepared in accordance with the procedures and standards contained in the Canadian Oil and Gas Evaluation (COGE) Handbook with an effective date of October 31, 2021. The resources definitions used in preparing the Report (included herein under "Resources and Reserves Definitions") are those contained in the COGE Handbook and the Canadian Securities Administrators National Instrument 51-101 ("NI 51-101"). The Report was conducted based on the GLJ 2021-10 Price Forecast which is summarized in the Product Price and Market Forecasts section of the Reports. Table summarizing reserves and resources estimates for various reserves and resources categories are provided in the Summary section of the Reports. As a result of the gas price increases from December 31, 2020 to October 31, 2021, the NPV of net Trillion SASB reserves has increased by 48.3% for 1P, 35.2% for 2P, and 27.5% for 3P, in addition net Trillion prospect resources the NPV increased by 14.4% for low estimate, 14.4% for best estimate, and 13.6% for high estimate.

The following table summarizes the results of the two reports(1)(3):

Footnotes:

1. The Report has been prepared in accordance with resource definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation (COGE) Handbook. The resources definitions used in preparing this report are those contained in the COGE Handbook and the Canadian Securities Administrators National Instrument 51-101 (NI 51-101). Reserves Assessment and Evaluation, South Akcakoca Sub-basin, Effective October 31, 2021.
2. *NPV 10% Valuation is the discounted value of the reserves after all capital development, operating, costs, and royalties before taxes, discounted to present day dollars
3. Prospective resources have both an associated chance of discovery and a chance of development to derive a final chance of commerciality. GLJ has assigned a 90% chance of development for all six prospects and a chance of discovery ranging from 50% to 90% resulting in a range of chance of commerciality from 45% to 81%. Prospective Resources Assessment and Evaluation, South Akcakoca Sub-basin, Effective October 31, 2021.
   

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 major natural gas development projects; a 19.6% (except three wells with 9.8%) ownership interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.

The Company’s NI 51-101 and other reports relating to its reserves as of December 31, 2020 and prospective resources may be found on www.sedar.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

Cautionary Statement Regarding Forward-Looking Statements and other information about this news release and the Company reserves

The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgement. While resources estimate presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoirs performance subsequent to the date of the estimate may justify revision, either upward or downward.

Revenue projections presented in this report are based in part on forecasts of market prices, currency exchange rates, inflation, market demand and government policy which are subject to many uncertainties and may, in future, differ materially from the forecasts utilized herein. Present values of revenues documented in this report do not necessarily represent the fair market value of the resources evaluated herein.

This release contains forward-looking statements, which are based on current expectations, estimates, and projections about the Company’s business and prospects, as well as management’s beliefs, and certain assumptions made by management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “should,” “will” and variations of these words are intended to identify forward-looking statements. Such statements speak only as of the date hereof and are subject to change. The Company undertakes no obligation to publicly revise or update any forward-looking statements for any reason. These statements include, but are not limited to, statements about the Company’s prospectus listing on the Canadian Securities Exchange, the potential impact on the market for its securities, expansion and business strategies, anticipated growth opportunities, and the amount of fundraising necessary to achieve the foregoing. Such statements are not guaranteeing of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Accordingly, actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. These factors include unforeseen securities regulatory challenges, COVID, oil and gas price fluctuations, operational and geological risks, the ability of the Company to raise necessary funds for development; the outcome of commercial negotiations; changes in technical or operating conditions; the cost of extracting gas and oil may be too costly so that it is uneconomic and not profitable to do so and other factors discussed from time to time in the Company’s Securities and Exchange Commission filings, including the most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q, 8-K. For a full summary of our oil and gas reserves information, please refer to our Forms F-1,2,3 51-101 filed on www.sedar.com, and or request a copy of our reserves report effective October 31, 2021 and or Prospective Resource report dated October 31, 2021.