Trillion Energy International Inc. (CSE:TCF, OTCQB:TCFF) has told investors it is moving closer to starting production this year from its SASB gas field in the Black Sea as it works to secure a jack-up drill rig.
In a corporate update, the Vancouver-based oil and gas firm said it was negotiating a letter of intent with a drilling services provider near the Black Sea region and it expects the rig would "be able to commence service at the SASB gas field during July 2022, subject to a definitive agreement being signed".
"Securing our rig to conduct our work program on SASB brings us one step closer to realizing our goal of bringing SASB into production during the year," said Art Halleran, CEO of Trillion in a statement.
READ: Trillion Energy redomiciles successfully from Delaware to British Columbia corporation
Halleran also noted that natural gas prices in Europe have continued to remain strong due to a number of factors, including continued supply shortages and speculation concerning an impending conflict in Ukraine. Trillion thus said it expects to receive further natural gas price increases which bode well for the SASB development.
"Energy markets continue to strengthen our outlook and opportunities continue to improve, and we are on track for a July 2022 development program start, subject to financing being received," said Halleran
On January 25 this year, Trillion noted it also struck a deal over advice on institutional debt funding and it said it expected a positive outcome, with "significant progress" having been made to date.
Earlier in January, Trillion also reported that its proposed merger and continuation to redomicile from Delaware to a British Columbia corporation had been completed.
"As a result of the company’s redomicile and amalgamation to British Columbia, Canada we had received a new CUSIP number for the company’s shares which is 89624B104," said the firm, adding that the CUSIP will be effective shortly.
Trillion is the 49% owner of the SASB natural gas field, one of the Black Sea’s first and largest-scale natural gas development projects.
It also has a 19.6% interest in the Cendere oil field in Turkey (excepting three wells with a 9.8% interest) and a 100% interest in 42,833 hectares oil exploration block covering the northern extension of the prolific Iraq/ Zagros Basin. In Bulgaria, Trillion Energy has the Vranino 1-11 block, a prospective unconventional natural gas property.
Contact the author at giles@proactiveinvestors.com