Drilling is set to begin in the near term for Trillion Energy (CSE: TCF) at its flagship SASB natural gas field off the shores of Turkey in the Black Sea. The development follows natural gas spiking this morning as a result of one of the biggest natural gas suppliers to Europe announcing it will be undergoing a three day planned maintenance at the end of August.
Trillion will see the Uranus drilling rig arrive on site on August 29, with the move of the rig about to get underway following routine maintenance and certification. Once it arrives, the company currently has a planned seven well development program that will get underway.
“We are pleased to announce a clear path to drilling and gas production -we are counting the days before we embark on this historic milestone achievement to bring substantial new gas production into the region at a critical time,” said CEO Arthur Halleran on the development.
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The rig is expected to be positioned at the Akcakoca offshore production program upon arrival, with positioning and jack up of the rig then expected to take a day. The company then expects the first well to be spud on September 1, or in a little over a weeks time.
Extensive infrastructure in the region will enable immediate production ramp up for the company. The program expects to see a new well come online roughly every 45 days. Furthermore, the continued development of the gas field has lead the company to state that it expects to hit upwards of $7.0 million per month in free cash flow, provided everything goes to plan.
Natural gas at the Henry Hub meanwhile is currently trading at $9.81, up over 5.0% on the day following ongoing developments with the energy crises in Europe.
Trillion Energy last traded at $0.39 on the CSE.
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