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New Blue Sky Opportunity Funded by Production Cash-Flow -- Trillion Energy · Financial Survival Network

• 0:00
  So you can see that our gas revenue will generate enough cash to cover our
• 0:06
  expiration. And the last thing I want to say is if people remember I
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  always said I love the SSB. SCSB to me is the cash engine,
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  and also now it's a technical engine because people come to us with projects that
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  is going to fund something bigger. SASB is a company maker, but it's
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  not the size of company I want. And when you look at the oil
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  prospect, we could find five million, fifty million or five hundred million barrel
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  field. The Financial Survival Network now more than ever, the Financial Survival Network
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  And welcome. This is Financial Survival Network. I'm your host, Terry Lutts.
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  We are getting a much awaited sponsored update from Arthur Haller and CEO of
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  Trillion Energy and Bart. It's great to have it back on the show.
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  So I noticed today August second, we had a release, a news release
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  kind of refocusing your efforts. Can you briefly just explain what's happening with the
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  company. Thanks for having me back on here, because you were at the
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  start of this program A and now you're at the finish drop program A.
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  So the first thing I'll mention is that our last while we produced is our
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  put on production now is Lapel and it is actually on production today and it's
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  producing about nine million qbig feet feet per day. But as to the twenty
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  to sixty four inch choke, because we have to choke the way back so
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  it won't back out the other guests wells, the news released today is we
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  are not stopping SASP because I've got a bunch of comments that now that we're
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  not going to be drilling at SCSP, it's going to be in the back
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  burner and we're going to focus on the expiration and now we're an expiration company.
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  Well, the actual reality is we are a gas producing company that's going
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  to do oil expiration. And the reason why we're putting and it's not really
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  a pause because we've always had program A and program B. So program A
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  always was five new wells and two recompletions. We drilled to five new wells
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  and we did one recompletion, and the second recompletion we decided we would do
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  to side tracks because of the risk we saw associated with fishing stuff out of
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  the borehole, so we put in six sidetracks and all we're really doing now
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  is sliding those six side tracks into two twenty four, maybe mid twenty twenty
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  four or second quarters somewhere in there. And the reason the reason for that
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  is we are doing the three D seismic will be finished reprocessing in September and
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  we'll start getting it mapped in locations coming out in October, November, December.
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  I've already seen some of the stuff and would I would suspect that we're
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  going to have better locations in the stratigraphic prospects than some of the side tracks.
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  Doesn't mean we won't do the side tracks, but we'll have a better
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  selection and we might end up having you know, six or seven good stratigraphic
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  targets than six of these side tracks. And also by that time, we'll
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  know whether some of the polls that we are producing from right now can use
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  a second well. So it's just going to be better use of the capex.
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  It's not that we don't have locations, and it's not that we're not
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  going to continue. It's just that this is a good time to retone.
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  Okay, so as far as cash flow, now, about how much is
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  the company pulling in a month on its interest on this interview? This will
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  be the first time that we have laid out the field now because we now
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  have the six wells in it, and so we can now say what's going
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  on here with a degree of certainty and forgetting about what's going to happen in
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  the future. So right now, at this point in time, we have
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  three wells that are producing at a good rate, and we are getting about
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  fourteen million cubic feet per day of gas and at today's price, and I
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  worked it out, it's eleven dollars a sixty five cents, So we're getting
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  about two point three two point four million dollars US as hours per month.
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  But that means three of the wells we need to get better production out of
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  it. And so another reason why we need to kind of take this little
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  bit of arrest is we've shown everybody we can drill the wells. We have
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  found more gas than we thought because each well end up having more pay And
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  some of the issues now is that we actually are at producing gas at a
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  high pressure. We know how to drill them. We found it, and
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  now we're in the process. Let's maximize the production. So what's happening.
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  So an example, Alpen well, we are producing at a twenty twenty to
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  sixty four inch choke and normally we produced at a thirty two sixty four.
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  It's just that there's too much gas, there's too much pressure, and what'll
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  end up happening if it's we end up building the pipeline pressure and it'll back
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  out the other good wells, say behind Lee, and we don't want to
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  do that. So we're producing behind Lee and we're producing alpe Choke back and
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  Gulich is okay. But what happens is is that for West Acachoca and South
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  Dakachoca, when we backed out the production, we got a water column in
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  it. And it doesn't mean the gas is not there because at two million
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  qbic feet per day, it can't produce the long through the long water because
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  these holes are like three to three point four kilometers long. Where there's no
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  gas, the water fills in and we have to go back in and reperf
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  or we have to find a way of removing that water. Reperfing, we
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  feel it's not going to be recovering all the reserves that we need, so
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  we're actually going to now use West Akachoca and put it into a slim line
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  ESP, which is electro submersible pump just to remove remove some of the water
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  to kick it back in. So getting back to my story, three wells
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  fourteen million qb feet per day West Akulchoca, we're going to put an ESP
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  in it because that will solve the problems for the water that's going to come
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  in in long term for the other wells and South Akua Choka. We're going
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  to reperf that one so that one will come back on, but eventually we're
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  going to need ESP for that. And an Acuchoca three. Again, there
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  seems to be a fish in there that's causing an issue. So if the
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  only well the might not come back on for a while is a could Choka
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  three, but that only costs US two million to open up, and we
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  made nine to ten million dollars on that. So that's the process. And
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  this is just normal understanding well management that we're talking about. We're kind of
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  getting in the weeds. Point is a lot of pressure coming out of three
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  wells holding back the other three wells, one of which maybe coming back on,
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  may not, but the other two definitely will be. We can look
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  over to higher production once you get these kinks worked out. That's correct.
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  And also we've also got some emails like it's like a flurry, it's like
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  a snowstorm about the oil and they say, now we're changing direction and we
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  have to do another raise, all that kind of stuff, And I just
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  realized I don't communicate properly. So I'm going to take a few minutes here.
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  So when we talk about an equity raise for SCSP, if we wanted
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  to raise thirteen million dollars, that's one well. If we did a thirteen
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  million dollars raise equity raise for the oil field, that's four wells, right.
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  But when you look at the economics, I mean the cost. So
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  if we're producing right now with three wells, about two million, and we
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  got to get the other wells on. But to say we're at two million
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  US per month in two twenty three, to meet our commitments for the oil
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  prospect, it's four million dollars before December. To shoot the seismic in twenty
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  twenty four, our commitment is four wells, which we pay one hundred percent
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  and including road building and everything, that's twelve million dollars. Then in twenty
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  twenty five and twenty twenty six, there's three more wells each commitment, but
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  we're only fifty percent as four and a half million dollars, so you can
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  see that our gas revenue will generate enough cash to cover our expiration. And
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  the last thing I wanted to say is if people remember I always said I
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  love the SCSB. SCSB to me is the cash engine, and also now
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  it's a technical engine because people come to us with projects that is going to
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  fund something bigger. SASB is a company maker, but it's not the size
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  the company I want. And when you look at the oil prospect, we
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  could find five million, fifty million or five hundred million barrel field. Doesn't
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  mean we're not going to chase off block SCSBT. And also a couple of
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  months ago, I said, I'm disappointed with the reaction that the ship that
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  the gas wells give to the share value. So I'm going to try to
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  get something by August. And here we are and I've basically done on everything
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  I said I'm going to do. And yeah, so refocusing a maximizing production
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  on what you already have, obviously that's priority, because you could go drill
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  a couple more wells, maybe double production. But if you get everything these
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  six wells producing you could double production right there. That's correct. Yeah,
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  and that's where we're going to focus on them, and then once we fine
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  tuned out and then we go to the next phase. So phase A we
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  pretty well have finished. That's we've always said there's a phase A and a
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  phase B, and we just slid it in the future. It's a much
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  better returning capital because we know we can maximize the production and get the revenue
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  faster. Got it all right. So the farming agreement that you announced a
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  couple of days ago, I heard a quote that you said, in your
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  forty years of doing this, it is the best to prospect that you've ever
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  seen. Did I get that right? That's correct, And an earlier interview
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  I actually got told I couldn't put that in the news release. And it
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  is the best prospect oil prospect because number one, the potential for size.
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  Number Two, it's not in the middle of Africa, so I can get
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  a rig, I can get people, I can and bring anything in there
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  is not very expensive. And three it's close to market. I don't have
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  to build a pipeline six hundred miles long or any with any type of that
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  kind of stuff. It's in Turkey, and Turkey needs the oil. And
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  with the larger fields right there, there's already has pipelines that they're talking about
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  building a refinery on those huge discoveries that are to the east of our block.
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  And the implication is this could also be a huge discovery. That's correct.
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  No, it is the expiration. But like I say, when you
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  when you look at all the potential reservoir horizons and the amount of staining you
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  have and the huge fields around it, and it's the same zone that comes
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  in from northern Iraq and Syria, it has the potential to be some big,
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  big targets unless what I say, you know, five million, which
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  is not a bad size. That'd be five times an SSP well, because
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  each SASP well is about a million boees or fifty million barrels or even a
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  five hundred million barrels. Because to the north we have a billion on the
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  one blocks added to the eadist another billion and a six hundred and fifty million
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  barrel field. Oh it sounds quite encouraging. Can you just tell us a
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  little bit about the agreement you executed regarding the Bulgarian properties. Yeah, so
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  I can't I can't say who it is because they don't want they don't want
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  to be used for promotion. But it's a well established, well known,
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  well funded company, and they are in m gas, gas and oil,
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  mine and transportation, and they we were talking to about something else and they
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  just said, we heard, we heard from somebody. You have a nice
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  property in Bulgaria. We'd like to share data and see if we can do
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  something with you to bring this forward, which is quite quite good. Okay.
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  So the prices obviously have come down from their peak during the run up
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  to the Ukraine War. We're down to eleven. It's still higher than the
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  eight to nine dollars we talked about. Do you see where do you see
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  prices heading for the next six months to a year. So my personal opinion
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  is that it's not going to go down much much more, and that when
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  we get into the winter, you know, I don't see why we can't
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  be up to the fifteen eighteen dollar range. But even even at the fifteen,
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  before it got eleven sixty five, one might have said, you know,
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  you can go back up to the higher higher price. But yeah,
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  I'd say eleven fifteen eighteen dollars towards the winter of twenty twenty four. The
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  key takeaway though is at eleven dollars twelve dollars an MCF, we would be
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  self funding for our continuing drilling, right because next days we don't have to
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  UM cash call t PAO. At the end of the well, the next
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  phase it is, we're going to drill us well and it's money up front.
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  So eleven twelve dollars we'd be self funding for um SCSB without drilling,
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  we can be down to less than a buck buck and a half and still
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  be okay. Right, hey, and this latest well, uh, you
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  got a cash call coming in within a couple of months ahead of us,
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  right from t we got the cash call. The cash call will be here
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  maybe Monday or Tuesday, all right, so that helps, yeah, because
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  yeah, so how it works as we did the cash call, I believe
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  it was Friday, they have about they have ten days, but they usually
• 14:07
  pay quicker that that cash call is about six point nine seven seven million.
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  And then again to explain finances to the audience, here, our June UM
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  bill, we get an invoice and then we have thirty days to pay.
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  Our June invoice for drilling is about three point two million and our July invoice
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  for drilling is about three point two million, and we have a cash call
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  for six point nine. We also have revenue checks coming in there. So
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  all that is this constant chatter about us not having enough money. It should
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  go away because we're not burning any money now for drilling, right right,
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  So the riga you're basically letting go for now. You'll you'll bring it back
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  in twenty twenty four. Yea, that's correct, So my my CEO,
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  they have an agreement that we have the right to call it back and if
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  they will get another job, they have to inform us so that we can
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  make a decision. All right, So you got to write a first refusal
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  on the rig and so that's good news. So it will be available if
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  you need it and when you need it and all right. So definitely interesting
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  developments here, Art. It sounds like it's in control though you're making money,
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  which is the important thing. The cash is flowing and promises to increase
• 15:35
  as well, So appreciate you coming on, Art. Okay, I suggest
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  everybody go over to trillion energy dot com. All this informations contain. They're
• 15:46
  a lot more sign up for notifications and don't forget the ticker symbol. In
• 15:52
  the Canada, it's at TCF. In the United States, t R L,
• 15:58
  E, F and ART. We'll be touching base with you in the
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  months by ahead. Thanks so much for coming on. Yes, it's always
• 16:04
  a pleasure. Thank you. The Financial Survival Network