Interview with Dr. Arthur Halleran, President & CEO of Trillion Energy

Our previous interview: https://www.cruxinvestor.com/posts/tr...

Recording date: 30th January 2024

Trillion Energy holds a unique position in Türkiye's vast natural gas industry, anchored by its strong 49% stake in the SASB offshore gas field. After contending with temporary production issues, the company now has engineered solutions ready to tap major nearterm cash flows.

The SASB gas field sits within the prolific Black Sea Basin. Trillion successfully drilled 6 new highrate wells here in recent years. However CEO Arthur Halleran acknowledged that "over promising and under delivering" led to the loss of some investor trust when the wells confronted water loading problems.

The good news is that ample gas reserves remain in place. The engineering challenge is surmountable. Halleran explained how the gas "is not lost it just the weight of the water on the perforations and the tubing that pushes the gas back into the formation."

The fix is to install artificial lift systems on the wells to pump out water. Once implemented, Halleran stated confidently that SASB can reach 15 million cubic feet per day production across the 6 existing wells by Q2 2024. This would generate over $40 million in annual operating income at current strong natural gas prices in Turkey above $11 per mcf.

Beyond that, 56 additional inexpensive workover wells could boost total output up to 25 million cubic feet per day. So within a year, Trillion anticipates unlocking major gas volumes capable of delivering outstanding cash flows due to low operating costs in the field.

The market opportunity in Türkiye looks promising. Natural gas demand grows steadily, fueled by economic and population expansions. Trillion sells into a robust pricing environment marked by limited volatility. Attractive fiscal terms in the country provide for high netbacks.

Thus, Trillion Energy sits on the cusp of a value inflexion. Nearterm catalysts can quickly turn past disappointment into big production, big cash. While keeping priorities trained on wringing profits from existing wells, an earlystage onshore oil block also grants blue sky upside when the timing proves right. For opportunistic investors, Trillion checks the boxes for rerating potential.

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View Trillion Energy's company profile: https://www.cruxinvestor.com/companie...

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