Trillion Energy International Inc said it has commenced its annual update of its SASB gas reserves and resources due to skyrocketing commodity prices and in advance of its anticipated 17-well drilling program planned for early 2022.
The company said the update will assess reserves contained in four discovered but unproduced gas pools plus contiguous risked development prospects contained within its Black Sea-based SASB gas property.
It is making the move based on the new gas price forecasts that are substantially higher than expected.
READ: Trillion Energy swings to $5.4M profit in 3Q as higher commodity prices boost performance at European oil and gas operations
The company in March 2021 released a reserves report and a prospects report by independent third-party consulting firm GLJ Ltd on the economics of its reserves and resources based on lower-price scenarios. GLJ will prepare the update as well.
Trillion said 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%.
“Now more than ever, it is timely and imperative to commence the SASB Gas field development with the highest natural gas prices being realized in almost 10 years,” said CEO Arthur Halleran in a statement.
“Natural gas prices have doubled this year, which is why we engaged GLJ to revise the project value to show investors the extremely positive economics of our SASB asset. We are moving forward seeking to achieve a brokered financing in early 2022, subject to the redomicile of the company occurring, which will pave the way to expedite development of the SASB Project.”
Meanwhile, the company said it has retained Echelon Wealth Partners Inc. to advise on securing funding for the development program at SASB during the first half of 2022.
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