Vancouver oil and gas producer Trillion Energy International Inc. (TCF:CSE; TRLEF:OTCQB; Z62:FSE), which is focused on ramping up production of proven yet non-produced gas reserves at the South Akcakoca Sub-Basin (SASB) offshore gas field in Turkey, today announced "it recently received a price increase for the sale of natural gas from its SASB gas field to US$30.68/Mcf (thousand cubic feet) effective September 1, 2022."
The firm indicated that 100% of the production from SASB is sold within the confines of Turkey, which is aiding the country in meeting its energy needs during a time of critical shortages.
The company noted that the higher prices it receives for natural gas will greatly enhance the economics and feasibility of its upcoming drill program.
The firm mentioned that natural gas prices in the region have risen steadily in 2022 and have more than tripled since last year. Trillion Energy explained that this is quite evident as, over the course of just one month, the new price levels of US$30.68/Mcf, which went into effect on September 1, 2022, are 47% above the $20.83/Mcf August 2022 market prices. The company noted that the new rates represent a 350% increase from natural gas prices in 2021, which averaged US$8.84/Mcf.
The company advised that the ascending prices are due mostly to supply shortages resulting from the shutdown of the Nord Stream pipeline, a nuclear power shutdown in Germany, and the ongoing conflict in Eastern Europe.
The firm indicated that 100% of the production from SASB is sold within the confines of Turkey, which is aiding the country in meeting its energy needs during a time of critical shortages.
Trillion Energy International's CEO Arthur Halleran remarked, "We believe the recent price increases will significantly enhance the economic performance of our seven well-drilling programs set to commence next week at the SASB gas field. With seven wells producing, we will supply the region with much-needed natural gas in a time of acute shortages and high prices."
Trillion Energy is an international oil and gas company based in Vancouver, B.C., Canada, that owns multiple producing assets across Turkey and Bulgaria. The company's efforts are now primarily focused on ramping up production of natural gas at proven sites to capitalize on the current energy shortage in Europe.
The firm has a 49% ownership interest in the South Akcakoca Sub-Basin (SASB) shallow water natural gas field in Turkey, which is one of the Black Sea's first and largest commercial natural gas development projects. In addition, the company owns a 19.6% interest in the Cendere oil field, also located in Turkey, apart from three wells in which it holds a 9.8% interest.
Trillion has also secured licenses to develop a prospective unconventional natural gas property in northeast Bulgaria known as the Vranino 1-11 block. The firm owns a 100% interest in Vranino 1-11, a coalbed methane (CBM) play, which according to the company's website, encompasses 98,205 acres.
Trillion Energy began the day with a market cap of around US$122.56 million with approximately 371.4 million shares outstanding. TRLEF shares opened 3% higher today at US$0.34 (+US$0.01, +3.03%) over yesterday's US$0.33 closing price and reached a new 52-week high price this morning of US$0.3939. The stock has traded today between US$33.41 and US$0.3939 per share and closed for trading today at US$0.3776 (+US$0.0476, +14.42%).
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