Black Sea-focused oil and gas company Trillion Energy International said this week that its 49% cost share for the Black Sea drilling program was fully funded, as the company completed capital raises totaling CDN$ 40.4 Million (USD$32million) year-to-date.
The drilling program relates to its multi-well SASB natural gas field development drilling program located offshore Turkey, and is scheduled to begin in August 2022. The company in May agreed with the Romanian offshore drilling firm GSP Offshore for the supply of a jack-up drilling rig for the program.
"Management believes the development is timely with natural gas prices reaching all-time highs. During June, prices hit a new high of USD $18 – $20 +/MCF. July prices are without change. In contrast, historical gas prices have been within the USD $6-7 /MCF range," Trillion said.
"The company is looking forward to commencing the drilling program imminently. To date, we have invested CND$5.4 (USD $4.2 million) for drilling tangibles such as: wellhead equipment, tubulars, casing, conductors etc. which are scheduled to arrive this month. The jack-up drilling rig is scheduled to arrive in August, upon which time inspection and maintenance will briefly occur.
The shore base, in which consumables will be stored to be transported to the platforms, will be fully operational [by] mid-July. The gas processing facility and pipelines are in good working order and no upgrades are required," Trillion said.
Seven production wells are expected to come online where work will continue until May 2023.
Arthur Halleran, CEO of Trillion Energy International said: “We are very pleased to be fully funded for our 49% share of the 7 well drilling program for SASB gas field at this time. The price of gas and demand is very high and we expect to show significant revenues as we ramp up production. We are also seeing strong revenue growth for oil at this time as prices increase.”