Black Sea-focused oil and gas company Trillion Energy has signed a Memorandum of Understanding (MOU) with Romanian offshore drilling company GSP Offshore for drilling services at Trillion's planned SASB natural gas production and development program in the Black Sea.
"We selected GSP as its Uranus jack-up drilling Rig is currently located in the Black Sea, thus, reducing costs of mobilization and because GSP has previously successfully drilled prior wells on the SASB gas field. GSP anticipates the Uranus rig will be able to commence service during July 2022 subject to a definitive agreement being executed by all parties (GSP, TPAO and Trillion). The rig service rate is USD $95,000 per day," Trillion said.
Under the initial program, the MOU envisions drilling five new wells and two recompletions. The Initial Program will target primarily prior 41BCF (billion cubic feet -100% interest) natural gas discoveries assessed as 2P reserves by GLJ, an independent reserves consultant. The duration of the Initial Project is expected to be 7 months with one new well being put into production every 15-45 days, Trillion said.
According to Trillion, the new wells are anticipated to produce immediately upon completion with production sold into the existing pipeline grid under contract, where high demand exists for the company’s production as natural gas prices hit a record high of over USD $13 MCF during February 2022.
Trillion also wants to use the GSP jack-up rig for an additional 7-10 new well drillings /workovers continuously after the completion of the Initial Program, on the same or similar fiscal terms as the Initial Project.
"This subsequent project primarily includes low risk development wells and or additional wells drilled into producing gas pool reserves. The exact number of wells targeted for the second program will depend on the results of the Initial Program," Trilion said.
"It is the company’s plan to drill all 17 wells, more or less continuously, bringing one new well into production every 45 days starting the 3rd quarter of 2022 and then throughout the duration of 2023, thereby significantly ramping up the company's production over that time frame," Trillion added.
"The Parties have commenced negotiating a drilling services contract for the Project which will reflect the principles agreed upon in the MOU," the company said.
Trillion is 49% owner of the SASB natural gas field, one of the Black Sea’s first major natural gas development projects; a 19.6% (except three wells with 9.8%) ownership interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.
Subscribe
