Trillion Energy TRLEF/TCF.cn +.02 to US$.3485 Trillion has been moving up lately as they finally have a drill bit working. No results, although the first well is a recompletion of a previously drilled hole. Should be low risk but they need these first two wells to produce as advertised to avoid a collapse in price. Lots of optimism built into share price.
There are positive reasons for optimism. Offshore drill platforms are already built and in place. 5, I think. The first 17 wells are very low risk due to previous drilling and testing. They were just never produced in a much lower ngas price environment. In addition, Trillion has pipelines already in place to an onshore facility with 75mmcfd capacity. So they drill, complete and almost immediately can produce ngas. That doesn't happen normally. Also their prices are locked in at US$30/mcf. Not Turkish Lira. Which is excellent because Turkey is experiencing 80% inflation. Don't want to be holding Turkish currency.
There are definitely risks due to Black Sea location, Turkey country risk and the normal offshore production issues. But in addition to the first 17 wells, Trillion holds rights to several exploration locations that could be huge. The plan is to use the first 17 wells cashflow to explore nearby locations from the existing platforms.
First well scheduled to be drilled, completed and producing by November. Short wait to find out if they can deliver.
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If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
