Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF) announced that it surpassed gross production revenue of US$1 million in August from its oil and gas assets.
During the month, the SASB natural gas field in the Southwestern Black Sea, offshore Türkiye achieved gas production of 133.13 million cubic feet (MMcf) for total revenue of US$1,456,400.
Trillion’s 49% stake in the field saw the company earn US$713,640 at a realized natural gas price of about US$10.94.
Oil revenue from Cendere was US$342,700, bringing Trillion's total production revenue for August to US$1,056,340.
Gas revenue from SASB was 95% from the Guluc-2 and South Akcakoca-2 wells, which are both stabilized and 5% from the West Akcakoca-1 well which has not stabilized and produces intermittently.
“Trillion’s August gross revenue illustrates the future potential of increasing the monthly revenue once we have more than just two gas wells producing,” CEO Arthur Halleran commented.
The company expects increased revenue from the SASB gas field as it explores production optimization techniques.
It said its revitalization program at SASB is “off to a great start” having realized the complete payback of recent perforation costs within 35 days of production.
“The wells on the Akcakoca Platform have been completed successfully with gas production and well head pressure continuing to increase,” Halleran commented.
“This early return on our investment is a clear indicator of the field’s robust production potential. The results are very positive, giving us good indications that decreasing the production tubing size from 4 ½” to 2 3/8” using velocity strings, should stabilize gas production at the targeted rates.”
The possible installation of velocity string in all six wells is expected to substantially increase gas production, repeating the success of legacy wells that averaged 4.2 billion cubic feet (Bcf) per well using 2 3/8” production tubing
“The 10 legacy wells at SASB between 2007 and 2021 produced a total of 42.19 Bcf of gas utilizing 2 3/8” production tubing, about 4.2 Bcf/well. We can expect the same with our wells once we put in the 2 3/8”,” the CEO explained.
“Even with the 4 ½” production tubing we have produced 2.71 Bcf of gas from our 2022/23 wells. Our gas price is US$10.94/mcf whereas the Henry Hub Gas spot price is US$1.91.”