Trillion Energy International Inc said it received a price increase this month for the sale of natural gas to about US$13.07 million cubic feet (mcf) amid seasonal supply shortages and strong regional demand.
In contrast, the company noted that the average natural gas sale price received during 2021 was approximately US$8.84/mcf.
The company said it believes a “trifecta of circumstances” have resulted in the sudden sharp price increase, which includes 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, among other issues.
READ: Trillion Energy International sees “significant” increase in SASB Gas field’s NPV on rising commodity prices
It added that 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-plus years.
“The recent high gas prices illustrate the high value and strategic focus of the SASB natural gas redevelopment to Trillion,” said Trillion CEO Art Halleran in a statement.
“The company is in the process of negotiating an memorandum of understanding (MOU) for the rig for drilling to commence sometime later this year. This year we expect to be transformative bringing significant value to shareholders.”
As a result of the gas price increases from December 31, 2020, to October 31, 2021, the net present value (NPV) of net Trillion SASB reserves has increased by 48.3% for 1P, 35.2% for 2P, and 27.5% for 3P, in addition to net Trillion prospect resources.
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