Savvy Trades and Investments

[Bobwins]

Energy stocks have been leading the market all year. My biggest position is Trillion Energy, TRLEF. Drilling into known reservoirs in the Black Sea off 5 existing offshore platforms. These cost hundreds of millions to build but have been paid for by previous production from the field. Trillion is just drilling known gas locations and getting paid $30/mcf! compared to $7/mcf in the US. First two wells were drilled and completed. Flowing gas at 3.3MMCFPD to Trillion. Pipelines to shore and onshore gas processing plant are already there. Takes 45 days/well to drill, complete and turn to revs. It's going to take a few months to get real numbers, cashflow and eventually profits but Trillion has 17 wells mapped out to drill in 2023 and 2024. Beyond that, they have several prospects that are very similar to the field they are now drilling. They will explore those once first 17 wells are drilled and producing. Here is latest presentation:

https://trillionenergy.com/wp-content/uploads/2022/11/Trillion_Energy_Intl_Corporate_Presentation_NOV_2022-V5.pdf

In addition to Trillion, I have mostly bigger energy producers. VET and Serica(SQL.L) are plays on European energy crisis but have faded lately due to Euro excess profits taxes and rising storage levels. US oil producers have done much better. MTDR, REI and OILSF are cheap and primarily oil producers. SD, CTRA are gas heavy.

Longer term, energy stocks should do very well. Even in a recession, energy usage doesn't drop that much. And most energy producers are very wary of overdrilling so they are holding production pretty even and using profits to buy back stock and distribute dividends. Europe is going to need every ounce of LNG we can produce to replace Russian gas. Time to build new LNG export plants is the big issue and resistance to building new pipelines in the US to increase LNG exports.