Investor Insight
With a strategic portfolio of oil and gas production and exploration projects, Trillion Energy is a compelling investment opportunity well-placed to play a critical role in Europe’s and Turkey’s energy market.
Overview
Trillion Energy (CSE:TCF,OTCQB:TRLEF,Frankfurt:Z62) is a natural oil and gas exploration company focused on providing energy to Turkey and Europe. The company operates primarily in the Black Sea region, where it has been rapidly increasing its natural gas production at SASB gas field since 2022. Trillion Energy is also expanding into oil and gas exploration, particularly in Southeast Turkey. With established infrastructure, including gas plants and pipelines, the company is set to play a critical role in meeting the region’s energy demand in 2024 and beyond.
Turkey is the seventh largest natural gas consumer in the world, importing 98 percent of its natural gas and 92 percent of its oil. Strong local demand, high gas prices (US$11/MCF), and favourable fiscal regimes (12.5 percent royalty and 22 percent corporate tax rates) provide a lucrative energy market.
Off the Turkey coast, the Black Sea gas pipeline plays a pivotal role in connecting Europe and Asia via Turkey, making it the only pipeline with such connectivity. This strategic infrastructure is key to Turkey’s energy ambitions, positioning the country as a vital energy hub between two continents. The pipeline is integral for distributing gas from the SASB Gas Field to both local and regional markets. Turkey’s existing infrastructure also allows it to tap into this route for supplying gas to Europe, further enhancing its role in global energy supply.
Company Highlights
Holds a 49 percent interest in the Black Sea’s SASB gas field, with 323 billion cubic feet (BCF) of original gas in place (OGIP) and proven reserves valued at USD $421 million (NPV10). Production increased by 300 percent from 2022 to 2023, with 17+ wells planned for development.Focus on high-impact oil exploration in Southeast Turkey, targeting fields with production rates of 10,000 barrels per day. Raised $55 million in equity and $15 million in subordinated debt for ongoing projects. Successfully drilled 5 long-reach natural gas production wells using novel technology in the Black Sea.
Key Projects
SASB Gas Field
The SASB Gas Field, located in the Black Sea, off Turkey, is a significant natural gas project redeveloped by Trillion Energy. Initially developed in 2007, the gas field has produced over 43 billion cubic feet (BCF) of gas. SASB plays a crucial role in Turkey’s domestic energy supply
Trillion’s development program for SASB consists of more than 17 production wells. More than $600 million have been invested into the historical wells and infrastructure at SASB. Six wells have been drilled in 2023, and the project is now producing at four production platforms.
Trillion aims to increase production at SASB to an exit rate of 8.5 million cubic feet per day by the end of 2024. The project benefits from high gas prices and strong infrastructure, with reserves valued at USD $420.5 million.
The SASB license block comprises 12,387 hectares, which expires in 2032, and is renewable until 2042.
Oil Exploration Blocks
Trillion Energy’s Southeast Turkey project involves oil exploration in the Cudi-Gabar province. The 2023-2026 program includes drilling 10 wells across three blocks covering 151,484 hectares. Trillion holds a 50 percent interest by funding 100 percent of the costs, with seismic data acquisition and well drilling planned. The area is surrounded by major oil discoveries, including the nearby Sehit Aybuke Yalcin and Sehit Esma Cevik fields, which are rich in oil reserves.
Cendere Oil Field
The Cendere Oil Field, located in Turkey, is a long-term, stable oil production site in which Trillion Energy holds a 19.6 percent interest (with a lower interest of only 9.8 percent in three wells). The field produces around 110 to 120 barrels of oil per day net to Trillion Energy, generating $120,000 to $140,000 in monthly cash flow. With approximately 1.5 million barrels of oil reserves remaining, the field has a net present value of US$13.85 million for Trillion Energy.
Cendere Field Well Pads & Production Lines Map
Management Team
Arthur Halleran – CEO and Director
Arthur Halleran has served as a director of Trillion Energy since October 4, 2011. He has a Ph.D. in Geology from the University of Calgary and 40 years of petroleum exploration and development experience. His international experience includes in countries such as Canada, Colombia, Egypt, India, Guinea, Sierra Leone, Sudan, Suriname, Chile, Brazil, Bulgaria, Turkey, Pakistan, Peru, Tunisia, Trinidad Tobago, Argentina, Ecuador and Guyana. Halleran has worked for Petro-Canada, Chevron, Rally Energy, Canacol Energy and United Hydrocarbon International. In 2007, Halleran founded Canacol Energy, a company with petroleum and natural gas exploration and development activities in Colombia, Brazil and Guyana, which made a billion-dollar natural gas discovery in Colombia.
David Thompson – Director
David Thompson successfully founded an oil trading company in Bermuda with offices in the US and Europe (Geneva, Moscow and Amsterdam). He was responsible for the company’s production operations in Turkmenistan and successfully raised over $100 million in equity. He was also responsible for production at the Lhamov and Zhdanoy oil fields (offshore Caspian Sea – part of Turkmenistan project) which discovered producing reserves of 365 million barrels of oil and 2 TCF gas. He also negotiated the farm-out of a number of company assets. He is the managing director of AMS Limited, a Bermuda-based management company, and was the founder, president and CEO of Sea Dragon Energy (TSXV), CFO of Aurado Energy, CFO of Forum Energy Corporation (OTC), financial director of Forum Energy Plc (AIM) and SVP at Larmag Group of Companies. Thompson is a certified management accountant (1998).
Jay Park – Director
Jay Park is a renowned energy lawyer with a particular focus on upstream oil and gas transactions. He has worked on energy projects in more than fifty countries, including Turkey. He has advised international energy companies, including oil and gas explorers, producers, marketers, pipeline companies, state oil companies, governments, banks and multilateral agencies such as the World Bank. Park was formerly CEO and then chairman of ReconAfrica, exploring for oil & gas in Namibia and Botswana. During this period ReconAfrica was twice named to the TSX Venture 50 and was the top performing 2021 TSX Venture 50 company from the energy sector. Park is currently executive chairman of MCF Energy, exploring for gas in Europe.
Sean Stofer – Director
Sean Stofer has over 20 years of renewable energy experience. Stofer is a graduate of the University of British Columbia in Engineering and is a registered engineer in California. He is a founder of several successful renewable energy companies including for the Arctic’s largest solar array; 250 MW of solar in the USA; 200+MW of wind projects and over 300MW of hydroelectric projects. He is COO of Green Data Center Real Estate, which uses renewable energy to power data centers. Stofer is leading a project of over 500 MW using wind, solar and hydropower. He has worked closely with the government to guide policy and has consulted to a wide range of companies. He was named among the Top 40 Under 40 in Vancouver, Canada for his business achievements.
