Trillion Energy International Inc. told investors it has made good progress in its multi-well drilling program at the SASB gas field in the Black Sea offshore from Turkiye.
In its first-quarter results statement, the natural gas-focused producer said development on the SASB field in 2023 is expected to include several more long-reach directional wells.
Trillion noted that after spudding the Bayhanli-2 well on April 5, it reached a total depth (TD) of 3,425 meters on May 13, where seven perforations have been successfully completed. Flow testing is expected to be completed over the next few days, the company added.
For the three months to March 31, 2023, the company said average daily sales reached a new quarterly record, with total sales from its first two wells increasing its revenue to US$6.15 million, a quarter-over-quarter rise of 6% and a year-over-year gain of 559%.
The company attributed the gains to higher realized prices and daily sales volumes for its natural gas, with prices averaging US$22.25 over the quarter.
By the end of March, the gross gas production rate for SASB increased to 12.6 million cubic feet per day (MMcfd) due to the two wells entering production just before month end. The average daily 2023 gross gas production rate for the SASB field is 7.75 MMcfd (100% interest), it added.
Net income for the quarter rose US$4.2 million to US$2.2 million and it ended the quarter with cash of $2.38 million.
“We look forward to experiencing further significant revenue growth during our second quarter 2023 based on our now four producing wells,”president and CEO Arthur Halleran said.
“Our focus is adding additional production at the SASB natural gas field, where we expect to add a fifth production well to be brought on production later this week.”
Trillion Energy International is focused on natural gas production for Europe and Turkiye with natural gas assets in Turkiye and Bulgaria.
The company is 49% owner of the SASB natural gas field, one of the Black Sea’s first and largest-scale natural gas development projects; a 19.6% (except three wells with 9.8%) interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.