Trillion Energy International Inc. (OTC: TRLEF)

Trillion Energy International Inc. is a Canadian based oil and gas exploration and production company focused on assets in Turkey. The company engages in the exploration development and production of natural gas and crude oil. Its primary assets are the South Akcakoca Sub Basin gas field and the Cendere oil field. Trillion Energy International Inc. holds a 49% working interest in the South Akcakoca Sub Basin and a 19.6% interest in the Cendere field.

The company generates revenue primarily from the sale of natural gas and crude oil produced in Turkey. Natural gas from the South Akcakoca Sub Basin is sold domestically at approximately US$9.33 per thousand cubic feet, with an average monthly price of US$10.39 per thousand cubic feet for the year to date 2024. Net gas production to the company was 0.326 million cubic feet per day after royalties in December 2024. Crude oil from the Cendere field is sold at around US$84.65 per barrel, with net oil production averaging 90 barrels per day after royalties. Revenue is realized through sales to the national gas transmission operator BOTAS and to the processing facility TPAO Karakus, which feeds into the BOTAS operated oil pipeline.

The company operates through the following segments.

• Natural Gas Segment: This segment encompasses the South Akcakoca Sub Basin gas field where the company holds a 49% interest and focuses on development production and optimization of conventional natural gas through drilling perforation velocity string installation pumps and gas lift to increase output and reduce downtime.

• Oil Segment: This segment comprises the Cendere oil field where the company holds a 19.6% interest except three wells with 9.8% and produces low decline crude oil managing well pads gathering stations and export via pipeline to generate revenue from oil sales.

Trillion Energy International Inc. occupies a niche position in Turkey’s Black Sea and Southeast Anatolia regions as an independent producer with access to existing processing and transportation infrastructure.

The company benefits from the South Akcakoca Sub Basin gas plant capacity of 42.4 million cubic feet per day and the Cendere field’s connection to the TPAO Karakus facility and the BOTAS operated oil pipeline.

Competitors include larger integrated firms such as TPAO and BOTAS as well as other international juniors operating in the same basins.

Competitive advantages stem from the company’s 49% working interest in the offshore South Akcakoca Sub Basin, its 19.6% stake in the long term low decline Cendere reservoir, an experienced technical team, and ongoing optimization programs that aim to improve well performance and reduce downtime.

The company sells its natural gas to the national gas transmission operator BOTAS for distribution across Turkey’s energy network.

Crude oil from the Cendere field is delivered to the TPAO Karakus processing facility before entering the BOTAS operated oil pipeline for onward transport.

These arrangements make BOTAS and TPAO the primary customers for Trillion Energy International Inc.’s hydrocarbon production.