Trillion Energy International Inc said it has signed a Memorandum of Understanding (MoU) to obtain drilling services from GSP Offshore SRL aimed at the company’s planned SASB natural gas production and development program in the Black Sea.
The Vancouver-based oil and gas producing company said it selected GSP as its Uranus jack-up drilling rig is currently in the Black Sea, which will reduce costs of mobilization. More importantly, GSP has previously successfully drilled prior wells on the SASB gas field.
GSP anticipates the Uranus rig will be able to kick-off work in July 2022 subject to a definitive agreement being executed by all parties. The rig service rate is US$95,000 a day.
As part of the MoU, the company anticipates drilling five new wells and two re-completions in the initial program. The company said the program will target primarily “prior 41BCF (billion cubic feet -100% interest) natural gas discoveries assessed as 2P reserves” by GLJ, an independent reserves consultant.
The duration of the initial project is expected to be seven months with one new well being put into production every 15-to-45 days, according to Trillion.
The new wells are expected to produce immediately on completion with production sold into the existing pipeline grid under contract, where high demand exists for Trillion’s production. Natural gas prices hit a record high of over US$13 MCF this month.
The company also hopes to utilize the GSP rig for an additional 7-to-10 new well drillings/workovers after the completion of the initial program, on similar financial terms as the initial project. The subsequent project primarily includes low-risk development wells or additional wells drilled into producing gas pool reserves.
The exact number of wells targeted for the second program will depend on the results of the initial program, said the company.
Trillion’s plan is to drill 17 wells, more or less continuously, bringing one new well into production every 45 days starting in the third quarter of 2022 and then throughout 2023, significantly ramping up the company's production over that time frame.
In a statement, Trillion CEO Art Halleran said: "The signing of the MoU with GSP to provide drilling services at SASB with its Uranus drilling rig is an important step towards executing the development program for SASB, to ramp up production at the Gas Field during times of extreme gas shortages and high prices."
In addition, the company has engaged Stockhouse.com and OGIB Corporate Bulletin to execute digital marketing campaigns for it.
Trillion Energy has multiple assets in Turkey and Bulgaria. It is 49% owner of the SASB natural gas field, one of the Black Sea's first major natural gas development projects.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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