Value Microcaps Junior Energy

[Bobwins]

Trillion Energy TCFF/TCF.CN +.051 to US$.215

Trillion Energy started out 2021 at around .05 and soared to US$.52 in early March 2021 after their story was told on some investment sites. Since then, the stock has steadily fallen, hitting a near term low of .14 a few days ago.

https://mk0tupejabahidi1sv4j.kinstacdn.com/wp-content/uploads/2020/10/Trillion-Energy-International-Inc.-Investor-Deck-Feb-2021-1.pdf

The corporate presentation tells the story well. Trillion owns 49% of the SASB ngas field offshore Turkey in the Black Sea. Their partner is TPAO, the Turkish national energy company. The SASB field was developed 2007-2011 by investing over US$600 million and has produced 41BCF since then.

SASB has 4 offshore production platforms in shallow water. During development, 6 wells were drilled, tested but never produced. Trillion intends to redrill those wells and put them into production. One of the wells tested over 7MMCFPD! 2P Reserves are 41BCF so Trillion's share is 20BCF. In addition to these wells, there are 7 more that have 80% chance of successful production near the platforms.

Trillion was founded by Art Halleran. Halleran also cofounded premier ngas producer in Colombia Canacol Energy. He has been working without a salary, preferring to take stock options in lieu of a salary.

Trillion needs somewhere around US$10million+ to drill the first 6 proven wells. The wells can be hooked up to the existing platforms and there is already pipelines to an onshore facility ready to accept the new production.

They had the financing lined up just as COVID struck. COVID has delayed the financing and also delayed permit approvals from the Turkish government.

So this company has 41BCF in reserves and could be in production as early as 1/22 IF they can close on a financing and get the first 6 wells producing. After that, they plan to use the cashflow from the first 6 wells to finance the next 7 that are high percentage prospects. In addition there are other prospects near the 4 platforms that could keep growing production in the future.

But so far, the financing has been slow to materialize. And this has caused investors to have doubts and slowly drained the share price to the recent .14 level. The company published Q2 reports and said there would be financing news in early September. This has generated a rising stock price, including today's 30% gain.

Trillion looks very undervalued, even at .215. They could be worth a couple of dollars under ideal circumstances and possibly more. BUT they still don't have drilling money yet. AND Turkey is a risky country to invest in. BTW Turkey is paying above market rates for ngas, currently over $5/mcf. So if they can get into production, they can sell all the production at above market rates.

I think this story sounds very plausible and we should find out if it's a hit or a miss very soon.

Bobwins