Trillion Energy International Inc. is pleased to provide this corporate update.
June 30, 2021 mid-year financial results and rising commodity prices
The Company recently is pleased to announce highlights of its financial results for the six-months ending June 30, 2021. Oil and gas revenues increased to US $1,957,817, a 53% increase compared to the same six-month period in 2020 of $1,279,464. The increase in revenues was primarily due to increases in the sale price for oil and gas. Global oil prices have increased from Covid levels of around $30/bbl a year ago, to over $70 /bbl during this period. Modest production increases also contributed to increasing revenues.
Revenues are expected to continue to increase due to escalating natural gas prices. The Company is experiencing rising natural gas prices in Turkey recently increasing to US$5.80/MCF commencing July 2021. Rising natural gas prices will benefit the Company as it is set to ramp up production at the SASB natural gas field commencing early 2021 through additional natural gas wells being brought into production through drilling efforts.
Annual General Meeting (AGM) Results of July 21, 2021
The Company is pleased to report that the shareholders voted to re-elect Arthur Halleran, Barry Wood, Kubilay Yildirim, David Thompson as directors of the Company for the ensuing year.
In addition, at the AGM the shareholders also approved the re-appointment of Harborside, Chartered Professional Accountants, as the Company’s auditor for the ensuing year. The shareholders also approved an amendment to the Company Certificate to increase the number of authorized shares of common stock from 250,000,000 to 400,000,000.
The Board would like to thank the shareholders for their ongoing support.
The increase in share capital is intended to allow room for financing the contemplated multi-well development of SASB, which is anticipated to cost at approximately USD $10-$20 for the first several wells and which will escalate to over $60m in CAPEX over the following years as more new wells come online. The Company’s current plan is to raise between $10 and $20 million dollars to finance the next stage of SASB gas field development, then to drill more wells through cash-flow generated from the initial wells.
Proceeds of Warrant Acceleration
On July 6th, 2021, the Company triggered a warrant acceleration provision in share subscription agreements entered into in calendar 2020, where all outstanding common stock purchase warrants issued during the 2020 calendar year (the "Warrants") were accelerated and required to be exercised on or before August 6, 2021. In total 19,024,247 share purchase warrants were exercised, for total proceeds of $2,282,910. Insiders purchased a total of 2,860,000 shares through warrant exercises.
SASB Development Financing
The Company continues its ongoing efforts in relation to financing the SASB Gas field expansion plans. The Company is confident that it will close a financing for the SASB redevelopment during its next fiscal quarter. A variety of delays have occurred to date, including an AGM to increase share capital, cross border prospectus issues and Covid 19 back-log now being experienced at the regional government offices in Turkey. The Company expects further news on the financing early September 2021.
