Trillion Energy International Inc. is pleased to announce two successfully re-completions in the Cendere oil field resulting in significant production increases. Along with higher oil prices, oil revenues are on track for a significant increase year over year. The Cendere oil field is a stable, long-term, low decline oil field.
The Cendere 13 well was re-completed resulting in daily gross production increasing from 245 bopd to 714 bopd (100%WI), a 469 bopd increase. As at Feb 1st, 2021 production was 654 bopd. Opex costs for the well declined due to decreased water production, almost 200,000 bbls, and water cut decreasing to 8% from 97%. The Cendere 23 well was re-completed on February 21, 2021 resulting in production increasing from 70 bopd to 100 bopd (100%WI), an increase of 30 bopd. Net WI to Trillion the increases are about 41 bopd and expected production of 157 bopd for February 2021.
The Company has enjoyed oil price increases to over US$63/bbl this year, up from a low of $17 during April 2020. Historically, revenues from the Cendere oil field were US $2.9 Million for FYE 2019, net to Trillion at average sale price of $62.43, but for FYE 2020 sales dropped to $US 1.7 Million due to the oil price crash of early 2020. The Company is now on track to exceed it 2019 oil revenues for the Cendere field due to the combined production and price increases as above.
The Cendere Oil Fields has produced 20,851,770 bbls to date and current production is 1204 bopd (100%WI) from 14 wells. A total of 23 wells have been produced at Cendere. The best well has produced to end of 2020 4,120,044 bbls of oil and 8 of the 23 wells have each produced over 2 million bbls of oil. The field has outperformed predicted values due to slower than expected decline, where on Dec 31, 2017 the remaining 3P oil reserves net to Company was 304,600* bbls of oil and between Dec 31, 2017 to Dec 31, 2020 37.1% (136,000 bbls oil) of the Dec 31, 2017 reserves was produced.
However, the 3P oil reserves net Company on Dec 31, 2020 still are 288,400* bbls of oil, thus, the Company’s reserves has only experienced a 4% decline since Dec 31, 2017.
Based on performance and with the increase in the price of oil the Company is expecting substantial revenue to continue for many years.