Friday, May 30, 2025

Latest

Trillion Energy: Research Capital Initiates Coverage With $1.35 Price Target

On September 13, Research Capital Corporation initiated coverage on Trillion Energy (CSE: TCF) with a C$1.35 12-month price target and a buy rating, saying that the company’s primary focus is on “the continued development of its SASB natural gas project, located offshore in the Black Sea of Türkiye.”

The company currently holds a 49% interest in the South Akcakoca Sub-Basin gas field or SASB, which includes four natural gas fields and five additional gas discoveries “that are ready for production, and multiple appraisals and exploration prospects.”

There has been over US$600 million invested into the construction of four different production platforms, and Research Capital says, “Nearly all of Trillion’s reserves are associated with the SASB field, which is one of the Black Sea’s largest natural gas development projects and has produced approximately 42 Bcf to date.”

An independent reserve evaluator said that effective December 31, 2021, the estimated remaining proven plus probable reservees net to the company were 20.1 bcf. Research Group estimates that the pre-tax net present value of the reserves discounted 10% is US$82.1 million, or C$0.28 a share – with the price used for the evaluation being between US$8 – US$10/mcf, far below the current price of US$31/mcf.

Additionally, Research Capital says that the SASB Gas Field has “low-risk resource upside from six appraisal prospects,” of which five have been drilled and tested but are not developed yet but have a net risked prospective resource of 23bcf, which would equate to a net present value of US$93.6 million. Exploration upside also exists, with 13 additional prospects identified, which have “an estimated unreskied resource of 100 bcf.”

This month, Trillion Energy will start a seven well development drilling/recompletion program that is fully funded and that already has extensive infrastructure in place. The drilling will continue into 2023, and initial production rates are expected to be in the 5 to 10 MMcf/d range, with payout in an estimated 3 months.

Research Capital also says that the company has a fully funded capital program from 2022 to 2024, as the company currently has US$27.6 million in working capital and no debt. The company expects the program to cost US$30 million, with the company already contributing US$4.2 million during the first half of the year.

Research Capital expects net production to rise to 13.6 MMcf/d in 2023 and 29.2 MMcf/d in 2024, as they assume Trillion will complete the full 17 well drilling program.


FULL DISCLOSURE: Trillion Energy is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Trillion Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Hecla Mining: Canaccord Reduces Price Target To $5.75 Following Earnings

Thursday, Hecla Mining (NYSE: HL) reported their fourth quarter and full year 2020 financial results....

Saturday, February 20, 2021, 02:34:00 PM

BBTV Holdings Sees Canaccord Raise Price Target After Financing

Earlier this week, BBTV Holdings (TSX: BBTV) announced that they closed their upsized 7% convertible...

Saturday, June 19, 2021, 05:14:00 PM

Canaccord Initiates Coverage On PLBY Group With $28 Price Target

Yesterday, Canaccord initiated coverage on PLBY Group (NASDAQ: PLBY) with a U$28 12-month price target...

Friday, April 2, 2021, 03:44:00 PM

Energy Markets “Will Still Be Oil & Gas” — With Arthur Halleran of Trillion Energy

Starting off the week on the Daily Dive is Arthur Halleran, President & CEO of...

Monday, October 17, 2022, 01:30:00 PM

Canaccord: Yamana Gold, Gold Fields Deal Is A “Surprise Combination”

On May 31, Gold Fields (NYSE: GFI) announced that they would be acquiring Yamana Gold...

Thursday, June 2, 2022, 03:56:27 PM