Trillion Energy Engaged in Development Planning for SASB Redevelopment

Trillion Energy International Inc. is pleased to report that it expects to receive an independent report on its Prospective Gas resources on the SASB Gas Field in the Black Sea this month and that it has completed its preliminary costing estimates and timelines associated with developing the reserves on SASB.

The focus on re-development of SASB is to prioritize development based on the economics metrics of each of the four gas fields considering: cost, total expected ultimate recovery, risk, and proximity to existing infrastructure. A final decision on work program details and scope will occur after a report on the prospective resources is received, which is currently being prepared by GLJ Petroleum Consultants, which is expected during July 2020.

Currently, the Company plans to conduct three rig-based workovers of existing wells tied into pipeline to return the wells into full production. Also, 4 undeveloped, proven discoveries previously drilled, but have yet to be tied into pipe and which have not yet been produced are targeted for production. These development efforts are expected to result in the following, net to us:

- 6.7 Billion Cubic Feet (BCF) gas produced from three, behind casing gas in existing producing wells, for a before tax NPV10% value* of US $41.6 Million
- 10.8 BCF produced for four undeveloped discoveries, for a before tax NPV10% value* of US $37.9 Million (*NPV 10 Valuation is the discounted value of the reserves after all capital development, operating, costs, and royalties before taxes, discounted to present day dollars)

Work overs are each expected to take 10-15 days each. Re-drilling of the directional wells is anticipated to take 45 days each. The unproduced gas reserves are planned to be produced by directionally re-drilling 4 wells from the existing platforms and tying the wells to the existing platform pipeline infrastructure. The work program is anticipated to be 5-6 months, which may be extended. The wells will enter production a few days after spudding, processed in the existing facility and sold under a take or pay sale contract. Gas prices vary, prices received have been between US $6.00 - US $7.80 /MCF this year. Gross gas production is expected to hit a peak of 27 MMcf/d (gross) from the reserves with anticipated net backs of approximately $5/MCF.

The anticipated cost for Trillion’s 49% of the CAPEX for reserves development on SASB is approximately US $26 million.

The Company may drill additional low risk prospective wells lengthening the work program and cost.

GLJ Petroleum Consultants has estimated the net before tax NPV10% from reserves alone is US $79.54 Million for reserves, after all costs and expense, discounted to current value.

The South Ackajoca Sub- Basin or (“SASB”) gas field is one of the Black Sea’s first and largest natural gas production and development projects, which has USD $608 million invested to date and has produced over 41 Billion Cubic Feet “BCF” of natural gas. Gas produced at SASB is sold at a substantial premium to European and North American markets.

“The reserve and resource reports are part of our strategy to develop a bankable asset that could be leveraged to obtain debt financing for development,” said Art Halleran, CEO of Trillion Energy. “We have been in touch with key potential lenders who have demonstrated an interest in evaluating the project. We believe that our reserves, operating history and current infrastructure de-risks the project so a debt facility make be feasible.”