Trillion Energy International Inc. (CSE:TCF, OTCQB:TCFF) has announced the results of an updated reserves and resources estimate for the SASB Gas field in the Black Sea, in which the net present value (NPV) of the project has “increased significantly” due to rising commodity prices.
The company noted the combined NPV, using a 10% discount rate, for the 2P (proven and probable) gas reserves plus risked medium case estimate of gas prospects, is US$169.3 million, up from the previous estimate of US$138.6 million.
And, the combined NPV for the 3P (proven, probable, and possible) Reserves plus high estimates for prospects is US$288 million, up from US$243.3 million previously.
READ: Trillion Energy International swings to $5.4M profit in 3Q as higher commodity prices boost performance at European oil and gas operations
Trillion Energy noted it intends to realize the value of the gas indicated in the report with the initial redevelopment of SASB slated for mid-2022.
Furthermore, it reported that 13 additional exploration gas prospects, comprised of stratigraphic channels and also known thin bed gas layers in the existing fields, will be further assessed in 2022 and 2023 using updated seismic when available.
The company also said it plans to evaluate certain exploration prospects surrounding the block with large blue-sky potential, all after getting the existing near-term development project funded and off the ground.
It added that it is currently taking advice about a structure for the financing and expects to make an announcement at the conclusion of the shareholder meeting slated for December 17, 2021, upon a successful vote.
The report does not contain an assessment of Phase V gas work program or any of the company’s oil properties.
Vancouver-based Trillion Energy International owns 49% of the SASB natural gas field, one of the Black Sea’s first and largest-scale natural gas development projects; a 19.6% (except three wells with 9.8%) interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.
Contact Sean at sean@proactiveinvestors.com