Trillion Energy Announces First Quarter Results and Operational Update
Full Quarter Production from AKK-3 and AKK-South wells results in record Revenues
May 30, 2023 - Vancouver, B.C. - Trillion Energy International Inc. (“Trillion” or the “Company”) (CSE: TCF) (OTCQB: TRLEF) (Frankfurt: Z62) is pleased to announce its financial results for the three months ended March 31, 2023 and an operational update.
President & CEO, Arthur Halleran commented:
"We achieved record revenues this quarter, based on production from our first two wells increasing our revenue to over USD$6.15m [CAD$8.3m]. We look forward to experiencing further significant revenues growth during our second quarter 2023 based on our now four producing wells. Our focus is adding additional production at the SASB natural gas field, where we expect to add a fifth production well to be brought on production later this week."
Operational Update
We are well on our way in our multi-well drilling program at SASB, having now completed our fifth well. Additional development on the SASB field in 2023 is expected to include several more long reach directional wells.
The Bayhanli-2 well which we spud on April 5th and reached TD of 3,425 meters on May 13th is currently being tested, where seven perforations have been successfully completed. Flow testing is expected to be completed over the next few days.
Financial and Operating Highlights – First Quarter of 2023
All references herein to $ refer to United States dollars in thousands of United States dollars, except as otherwise noted.
For the first quarter, our average daily sales reached a new quarterly record, with Q1 2023 sales of USD$6.15m (CAD$8.3m). (+6 % from Q4 2022 and 559% from Q1 2022).
Natural gas prices averaged USD $22.26 effective for all natural gas sales between January 1 to March 31, 2023. Higher realized prices and daily sales volumes for our natural gas resulted in the revenue increase.
As of March 31, 2023 the gross gas production rate for SASB was 12.6 MMcfd (100% interest) a significant increase due to two additional wells entering production just prior to month end. The average daily 2023 gross gas production rate for the SASB field is 7.75 MMcfd (100% interest).
We reported net income of USD $2.2 million in Q1 2023, an improvement of $4.2 million compared to Q1 2022.
Oil and gas capital expenditures totaled $6.64 million, including well costs for Guluc-2 and Akk-West on our SASB field, seismic reprocessing costs for SASB and long-lead purchases. Total oil and gas assets rose to $36.7m.
Proved and probable conventional natural gas reserves (P2) increased to 63.3 BCF* up from 48.6 BCF (YE 2022), an increase of 30% as at January 31 2023, as assessed by independent third party report*.
Our cash improved to $2.38m and working capital was ($7.4m) at March 31, 2023.
The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.trillionenergy.com, thecse.com, and will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.
