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Trillion Energy: Increasing Gas Production -- Oil Exploration Has Begun · Financial Survival Network

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  The shares right now are pretty well the same before we started the drilling,
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  so they are actually right now a very very good bargain because nothing has changed.
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  The six wells are still there. The six wells still have the reserves.
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  When you talk about a glitch, it's just normal production issues that you
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  have with a with a field. We're going to be re perforating three wells
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  and what that does is because the gas comes in at four to five to
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  six million, can be pete per day and it blows the water out.
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  So that'll produce like that for you know, two three, four months.
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  The Financial Survival Network now more than ever, the Financial Survival Network. Welcome.
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  This is Financial Survival Network. I'm your host, Kerry Lutts. We
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  are getting a much requested update firm sponsor, Trillion Energy. It's been a
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  rough patch in the oil and gas patch recently, but we're here with Trillion
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  Energy CEO Arthur hollerant Art. We've been talking for years now. I said
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  when I first found this company, it was the most undervalued company I ever
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  found in my forty plus years of investing. And now with the company trading
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  it close to one time's earnings. Try to find that. I still believe
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  that undervalued, underappreciated problems emerge. But business is all about solving problems.
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  What problems have hit you that you weren't didn't expect and what have you done
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  about them? Okay, well, thanks carry for having me on the talk
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  show. Here to us so I can explain some of it. Like you
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  say, the shares right now are pretty well the same before we started the
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  drilling, So they are actually right now a very very good bargain because nothing
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  has changed. The six wells are all there. The six wells still had
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  the reserves. When you talk about it glitch, it's just normal production issues
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  that you have with a with a field. So we have long, long,
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  directionally drilled wells and when you're producing the gas, you get some water
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  coming in and it causes water loading. It's not the flank migrating up and
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  then what happens is it's just the weight of the water. Now at the
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  PERF zones, we came up with a plan. We've also engaged and they
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  are engaged. They've already given us the first report of facility production engineering burn
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  from Calgary. And the short term fix is perforation, which we are doing
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  and which we put out a news release. We're going to be re perforating
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  three wells. And what that does is because the gas comes in at board
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  to five to six million per day and it blows the water out. So
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  that'll produce like that for you know, two, three, four months,
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  and the long term solution is to put a pump in the borehole to pump
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  the water so that the weight's not done. We have three alternatives. We're
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  just waiting for the arrival of the pumps and we're then we're going to be
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  doing a test study. That doesn't mean we're not going to turn those three
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  new perfect wells out. We're going to put the test well, the test
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  pump in another well without reperforating it to bring everything back. So there's really
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  no reason for the shares that go down the way they did in the last
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  few days. I know why they went down, and so the people should
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  know that I know, and nothing has changed. The production is still going
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  to be there. The market price comes and goes. My biggest opportunities I'm
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  still major position in trillion has come from mispricing and misunderstanding by the market.
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  That's normal. Heading back to the consultant, you brought in, they like
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  looked it and like you said, long directionally drilled wells prone to water seepage,
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  which makes complete sense. And this company brought in world authority in optimizing
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  gas fields and production. They figured this out like almost immediately, didn't they.
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  Yeah, so they what they've done is there's going to be three stages.
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  On the first stage, they just told us the issues, which we
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  knew some of the issues, but they pointed them out. The next stage
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  is they're going to show us the alternatives to you know, fix it.
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  And the third stage is to give us learnings to when we drill our new
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  wells. Right. So an example would be one of the first things they
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  pointed out, which we mentioned before, but was tubing size. We had
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  four and advts tubing and that was because we needed that size tubing to run
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  the borehol tractors to bring the perforations string to perthi zone. And then that's
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  too big. They say we should be down to like two and three eighths
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  inch tubing and that makes it more production can lift the water. And so
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  the learning for the next time is we're going to perforate all the zones all
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  at once. When we drill the well and then put the tune half or
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  two and three eight since tubing in, So they pointed that out. They
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  also were saying, with the smaller tubing, we can use velocity screen where
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  the gas just goes up and we don't need pumps and things like that.
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  So they've already looked at it already in a fair bit of detail, and
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  so anticipating I've seen the numbers. Production by year end should be netting what
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  to seven and a half a million cubic feet per day, that's trillion share
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  of the hole. And in addition, we've seen gas prices go up a
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  little bit in Turkey. Right, that's correct. How we're getting over twelve
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  dollars US now for our gas. And then, like you say, we
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  expect to just by re perforating these three wells and putting in them, the
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  water pumps will be up to about fifty million cubic feet per day one hundred
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  percent, so half of that would be ours. And the low hanging fruit
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  is just the perforating the three wells, and we will be doing that.
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  We get detractors because we needed attractors. Well, detractors will be there probably
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  next week, so we'll be perforating in about a week or ten days.
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  So this is happening right away, so we're going to see an immediate production
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  boost once the new perfs take place. That's correct. And there's also this
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  big rumbling people say money, money, money to do all the perforations.
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  Our percentage is the cost is about six hundred thousand to eight hundred thousand dollars.
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  And how it works is that TPEO is the operator. They do the
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  activity, they perforate, they send us in boys and then we have to
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  pay it in thirty days. So we already have gas production, right,
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  because everybody remembers a gas production is instant. The minute we perf the wells
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  run production. Right, they're connected. And then for next year you've got
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  the side tracks. I think there are five side tracks for next year.
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  So what you know now is obviously going to speed up the production of the
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  side tracks and avoid these issues. Yeah, that's correct. And the other
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  little part about it is when we're talking about the side tracks before, so
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  the existing borehold is there, and there's existing perforations, but they didn't recover
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  all the gas for one reason or another, and some of them is because
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  of the water loading and because they never used ESP pumps and so on.
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  So if we find out it works for our trial study because we're going to
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  try it an ESP or progressive cavity, then potentially we don't have to drill
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  all sidetracks. We can re enter the old boreholes and do nothing but hump
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  the water down and the gas will come back on. So that will be
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  way cheaper. That'll be like a couple of hundred thousand versus eight nine million
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  to drilling. It will. So, you know, the rumors are flying
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  and it basically the rumor is that TCF is not going to make it,
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  that you're going to go out of business. So look me in the eyes,
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  tell me that you're in this for the long haul, and that the
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  solvency the future of the company isn't in doubt. Yeah, that the company
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  is here and it's not it. There is no doubt in the future.
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  And you know, one of the things about business, I always say,
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  it's not about the money you manage to get, It's about how you manage
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  the money you do get right, And there is like right now, there's
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  no issues between now and early twenty twenty four. Sidetracks are drilled, they're
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  all producing optimally. What can production look like at that point? And I
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  understand it's an estimate at best, but you have a pretty good idea.
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  You know what your reserves are, you know what's in the ground there under
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  the water. Yeah, that's correct. And what we did was we just
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  use the legacy wells because they're identical. Some are not as good as good
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  as pay as we have. And so our exit for twenty twenty four or
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  in that ring should be about twenty four to twenty five million, could be
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  feet pretty one hundred percent, So alf of that is ours and that's being
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  middle of the road, and that's that's nearly double what you're expecting to end
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  twenty twenty three with. And hey, we don't know what the price of
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  that gas is going to be. Nobody knows that. I mean, just
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  to look at the traders in the United States, we had a recent breakout
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  in the price. Nobody was expecting it, but of course that's when it
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  happens. So just if we have the same price that we have now,
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  which is unlikely, it's going to be pretty much an eighty percent increase in
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  monthly revenues. Yeah, that's correct, And right now, there's doom and
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  gloom out there. Like you say, everybody saying that the TCF is not
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  going to be around, and like I say, that is in my opinion,
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  that is a group that's putting that news out there for certain reasons.
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  And I'm afraid to tell them or happy to tell them that TCP is going
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  to be around. Because we drill the wells, we have the gas there,
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  we're getting a good gas price, we have a way to solve the
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  issues we have. We're just going to execute it. And at the same
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  time, now our oil block that we're farming into is looking better and better
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  because I just asked for some information and it appears a TPAO, the government
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  company, has licensed about four more new expiration wells within a few if not
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  a kilometer from our blocks, and so those wells were probably drilled before we
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  actually drill our wells. So in what we used to do in Canada is
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  when we had an expiration block and somebody was going to drill right beside our
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  block, it was like getting a free look at what we had in our
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  block. And for that also, we're starting the seismic for the eastern over
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  the part that has the antikline, because we also have some surface mapping.
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  Now, any anti cline that has those large oil discoveries, both of them
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  trend and pass right through our barm and block, and so it's looking really
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  really good. How much are those other antikline fields nearby? And my understanding
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  is ones as close as ten kilometers? How much are they producing those fields?
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  So yeah, again the information is pretty tight, but I just got
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  an update here a few days ago. They have six six wells and they're
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  producing eighteen thousand together, eighteen thousand barrels oil per day, and you know
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  they produce over one thousand barrels each and they intend to just keep drilling.
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  They're just going to keep drilling. Pretty those are gushers, right, Yeah,
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  they're pretty good wells. Yeah, and that's thirty six and forty one
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  API, and you're pretty much very similar geology to what they've got there,
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  exactly the same geology. And for that eighteen thousand barrel oil pertage field that
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  anti cline is on surface mapping carries right through our profit and there's no seismic
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  on that block where that anti cline is, and know well, so it's
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  complete new growth. Okay, So once the earliest you think you'll be drilling
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  your first exploratory well. So that first exploratory well will be in June or
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  July of twenty twenty four. We'll have the seismic shot because we have to
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  shoot it before the winter. Before December. We'll have some rough I'll be
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  there looking at it, but it'll be processed, and the early processing we'll
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  be able to see, you know, in a the size and the location
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  or the geometry of that any client, and that will be a news release
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  all were putting out right away, and then by February March we'll have the
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  more refined mapping and then we'll set up to drill June July, and drilling
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  is two and a half million bucks. Yeah, the seismology, you were
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  doing the updated seismological study on SASB. Where is that at now? So
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  we finished the reprocessing. The mapping is going to be starting here. They're
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  now doing the calculations of the a VO, So some of the rough mapping
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  for the faults and stuff like that is occurring right now, and then in
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  about end of November they will start to map the AVO anomalies and so on,
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  so we should be start seeing some pretty good maps by January February.
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  And just one thing about seismology the way it is now when you drill for
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  oil or gas. It used to be, you know, you had a
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  guy with a divining rod, one edd of two out of every ten wells
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  would be good, ten would be dry holes dusters. Now nowadays it's the
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  opposite, right when when you drill, when you actually drill for oil or
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  gas, you're I didn't say, I don't want to say absolutely certain,
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  but you have a very good idea of what you are going to find when
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  you start drilling. Yeah, that's correct, especially on SASB because the way
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  the gas and the sands with the process, because they're such a good reservoir
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  that well, I'm not saying they're going to calculate. They calculated an anominate
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  thing and it's called av oh. And from the drilling, we know that
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  we can see the gas in the seismic and it has to be a certain
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  thickness and so on. But all the old pools that we drilled and the
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  new pools we drilled were based on the signature. And then you do a
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  color contrast and it becomes very hot and it is I mean, I said
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  one, I'm one hundred percent sure we'll get oil and gas, and then
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  Security Exchange pull me up and said, no, I can never say one
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  hundred percent. And that's a true, a true thing. So I am
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  as certain as I can be that there's gas there when you see it was
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  anomalies. Hey, And just to drive on the point that I trust to
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  your judgment. You're six for six, right, Yeah, that's correct.
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  Yeah. And also what people don't realize is that three of the wells that
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  we actually drilled were expiration wells. Right. So for Gulich two, there
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  was a Gulige South and that was a reserve well. We never drilled own
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  because we saw a better ABU signature what I'm talking about in the northern one,
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  which was the expiration block. And so when we drilled out when we
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  got seventy five meters of bay versus thirty five in the southern one. And
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  this souther one still exists, we never drilled it. It's proven because it
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  has a vertical well. And yes, so we're six for six. Yeah.
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  So when you say, when you drill, you're almost certainly going to
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  find oil or gas, I tend to believe you based upon your track record.
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  Unfortunately, the production lagged the drilling because of the issues you said,
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  but you know, it's all part of the learning process. And more importantly,
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  you're optimizing the production now and it's just a matter of the getting this,
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  doing the purfs, getting the pumps in place, if that's what you
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  decide to do. But by the end of the year, we're going to
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  see the production that we were expecting all along. That's correct. And when
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  we talk about the averages, you know, so when we perforate these three
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  wells, we will be at that year end production for the first month or
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  so, so it'll they'll come in very, very high. And then so
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  we will then start getting some good, good cash flowed from that. Okay,
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  So you know, it's always darkest before the light. As they say,
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  you know, the market is the market. We don't need to question
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  what its reasons are rationale. But my feeling is that in the end,
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  value wins out. And even more important and value is cash flow. When
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  the money's coming in, nobody can say that trillion's going to disappear, can
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  they? You know, that's correct. And again talking about the cash flow,
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  the cash flow for now, like for the expiration for the recompletion and
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  so on is not that much that what we need. The big cash is
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  way next year and we'll have these wells on producing and we will be banking
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  most of that money. So that's that's like way in the future. And
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  we already we still have the five million dollars worth of consumables that we purchased
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  for those side trucks. We still have that, so that's already paid for.
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  So you already paid for a substantial portion of this future drilling art.
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  I want to thank you for coming on. Thank you for you know,
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  looking me in the eye and telling me what's going on. You know,
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  I hope when the production's up, cash flows up, you'll come back on
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  and we can drink a glass of virtual champagne. Kiss twenty twenty three goodbye,
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  and look forward to twenty twenty four. Yeah, that's correct, and
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  in twenty twenty four we'll hit that big oil well. Go to the company
• 18:25
  site trillion Energy dot com sign up for notifications. You know, the most
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  transparent, up to date reporting of any company I've ever seen. Ticker symbols
• 18:36
  Canada tcf US new symbol t r l e ED. I'm still holding my
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  shares Bart, we'll talk to you in a couple of months hopefully. Okay,
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  thank you very much. The Financial Survival Network