November 21, 2019 13:15 PST

Overview

 

  • Licensed & Permitted to 9-Nov-2031
  • 12,387 Ha Akçakoca Development Lease
  • Trillion working interest: 49%
  • 23 wells drilled, 4 currently producing gas at this time
  • 4 production platforms tied into 18 km subsea pipeline and onshore gas processing plant
  • The SASB gas field needs significant re-investment to increase production levels, which have declined significantly since initial development occurred during 2012
  • Natural gas prices at two year high CAD$9.52/MCF (US$7.27/MCF) as at Dec 31 2018 — Up 40% in 12 months

SASB Project History

SASB was the Black Sea’s first commercial natural gas development project which was developed at the time by a consortium of local and international energy companies. Phases I & II of the project were developed during 2008 – 2012, where Trillion Energy’s 100% subsidiary Park Place Energy Turkey Limited “PPETL” invested approximately US $180m for a 36.75% interest. Several other project partners also invested the balance of funds, to meet the total project cost at the time of US $608m.

 

Between 2008 and the present, the SASB Gas field has produced approximately 41 BCF of Natural Gas (100%) based on the Phase I & II development. Revenue from production was then shared between the respective project partners.

 

During 2017/18 – Trillion Energy acquired a 100% of PPETL, which at that time owned 36.75% of the SASB Gas field

 

During 2018, PPETL purchased an additional 12.25% of the SASB Gas field to bring its total project interest to 49%

 

Commencing 2018 Trillion Energy /PPETL have embarked on an assessment and study to determine the future potential for the SASB Gas field. This assessment work is expected to be completed prior to the end of 2019.

History

 

3D Seismic Imagery De-Risks Gas Prospects

 

Extensive, 3D and 2D Seismic generated pre-development (pre-2009)

  • Production Lease is covered by 300km2 3D seismic acquired in 2004 and 2275 line KM of 2D
  • High-resolution survey with gas-bearing sands clearly indicated
  • Amplitude supported, structural & stratigraphic traps identified by 3D imagery are located within the Production Lease

23 Wells drilled in total (2008 – 2012)

  • Wells drilled in shallow water, and were drilled using a jack-up rig
  • 17 wells drilled during Phase I (2008)
  • Three offshore platforms installed during Phase I
  • 6 Wells drilled during Phase II and one offshore platform installed (Akcakoca) (2011/12)
  • 82% success rate in drilling prospects on 3-D seismic identification

 10 wells put into production (2008 – 2012)

  • 10 wells tied into a pipeline from four offshore platforms between 2008 and 2012
  • SASB has produced 41 BCF of Natural Gas from 2008 to date based on 100% interest. At current regional prices (US$7.35) the value of produced gas to date is USD $301m
  • Trillion through PPETL historically had a 36.75% interest in production from the SASB field, in 2017 Trilion’s interest was increased to 49% of SASB
  • Natural Gas production has significantly diminished since first development occurred in 2008 (Phase I) / and 2012 (Phase II) where the SASB field is in need of substantial capital re-investment to regain higher production levels
  • Rig based well workovers and new drillings into potential untapped gas accumulations may significantly increase production and which are the subject of current evaluation and study at this time

Future potential for redevelopment of the SASB gas field

  • Extensive 3D seismic indicates several exploration prospects and future drilling targets for natural gas, which are proximate to existing production platforms and gas pipelines
  • Several wells drilled during Phase I & II are currently being evaluated for future production potential and workovers, and or redrilling
  • Results of current SASB field and reserves assessments are expected to be determined by the end of 2019

Prospects

 

Prospects being evaluated for Field Re-development

Strategy
  • We are currently evaluating the potential for the re-development of the SASB Gas field, include 4 prospects able to be re-developed / drilled from the Akcakoca Platform, as well as other prospects which we believe are reachable from the three other production platforms. We have identified several wells drilled in Phase I/II which may be suitable candidates for re-development. We are also currently evaluating historical data to determine the feasibility of deploying a rig to perform recompletions of the wells.

Investor Information

CSE listing pending. TCF symbol requested.