Trillion Energy (CSE: TCF) on Monday announced an operational update for their SASB gas field. The company revealed that gas sales have started from its new well in South Akcakoca and that the borehole for Akcakoca-3 has removed all the old wirelines. The gas sales from the new well are said to have averaged 3.0 MMcf/d between November 4th and 10th.
Additionally, the operation to get the junk from the Akcakoca-3 well has been completed after five days. In those five days, the company removed over 600 kgs of lost cable, milled out the old packer, and cleared the wellbore. As a result, the borehole is ready for re-perforation, which is expected to be completed later this week, and production is slated to start shortly thereafter.
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With the news, Research Capital Corporation reiterated their buy rating and C$1.35 12-month price target, which is a 175% upside to the current stock price. They say that management expects to gradually increase the production rate over time and that generally, the “South Akçakoca 2 well was placed on production ahead of schedule.”
They add that the C$1.35 12-month price target is just 3x their 2024 debt-adjusted cash flow. They expect natural gas rates to sit at US$18.50 per MCF in 2024, putting revenue at the equivalent of $110.07 per barrel of oil equivalent by the same time. They expect fund flows netback to be $68.83 per barrel of oil equivalent.
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