The SASB gas field is producing critical domestic supply of natural gas during the energy crisis gripping Europe at this time. SASB is a conventional gas field located in the Southwestern Black Sea, consisting of numerous conventional natural gas pools located in shallow water. The fields have produced over 43+ BCF since initial development in 2007. Production platforms, pipelines, initial wells and gas plant cost in excess of US$600m (100% interest). Trillion is redeveloping the field with a planned 21+/- well program commenced in 2022. The target is to exit 2023 with 10 producing wells.
License block size: 12,387 Hectares. Expiration: licensed to 2032; renewable until 2042.
Royalty: 12.5%. Corporate tax rate: 22.5%. 2022 Projected CAPEX: USD$50m (2023)
- South Akcakoca Sub-Basin, Western Black Sea
- Block boundaries
- 2d seismic
- 3d seismic
- Existing SASB gas field offshore platforms
Additional Exploration Targets
Targets proximate to the platforms & pipelines Includes Stratigraphic Targets
Explore off-block for large natural gas structures
3,100 km of 2D seismic data delineating targets off block for future exploration
SALE PRICE (JUNE 2023)
FOR 21 WELLS
- SASB Development Costs
- $42m+ equity financing (2022)
- High Regional Natural Gas prices USD $14/MCF
- Drilling Commenced in Sept 2022 - 5 wells completed to date
- Take or pay contract for all gas
- Cashflows reinvested into Programs B, C & D
- Drill 5 Wells
- Recomplete 2 Existing Wells
- Focus on reserves
- Drill 10+/- Wells
- Re-Enter 2 Existing Wells
- Drill 1 Stratagraphic Well
- Add 1 platform
- Drill 3 sidetrack wells
- Subsea Tie-In
- Exploration - Stratagraphic Prospects and channel sands
- Exploration about the field is expected to yield new discoveries
- Off-block exploration
- Deep-water $30m + per well (100% interest)
- Shallow water
- Tie-ins for production extra
Reserve Report Highlights
- Proved and probable conventional natural gas reserves (P2) increased to 63.3 BCF* up from 48.6 BCF (YE 2022), an increase of 30%
- Net present value of proved and probable (P2) natural gas reserves (NPV10%) increased to USD $548 million* net to Trillion, up from USD $426 million* (YE 2022) a 29% increase. The US $548 million NPV 10 value represents USD $1.43 per share**
- Net present value of Proved Reserves (P1 - NPV10) increased to US $153.7* million from US$ 119.5* million (YE 2022) a 29% increase;
- Net present value of proved, probable and possible reserves (P3) NPV10 * increased to USD $925 million net to Trillion, up from USD $725 million (YE 2022), an increase of 28%; representing USD $2.41/ share NPV10**
*Trillion’s 49% interest before income tax and royalty **basic common shares
Reserve Report Summary
SASB Gross Reserves*
*Trillion’s 49% interest before income tax and royalty
SASB Net Present Value*
*Trillion’s 49% interest before income tax and royalty
About the Reserves Evaluation
For the year period ended January 31, 2023, the Company's reserves were evaluated by GLJ, Ltd. ("GLJ"), in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter) ("COGEH") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and are based on the Company's reserves as evaluated by GLJ in their report with an effective date of January 31, 2023 (the "Reserve Report"). GLJ is an independent qualified reserves evaluator as defined in NI 51-101. Additional reserves information as required under NI 51-101 is included in the Company's statement of reserves data and other oil and gas information on Form 51-101F1 filed on SEDAR March 24, 2023. See "Advisory Note Regarding Oil and Gas Information" section in the "Advisories", at the end of this news release.