The moment Trillion Energy (CSE: TCF) investors have anxiously been waiting for has finally arrived. The Uranus drill platform, which is set to conduct a seven-well drill program plan for the company, has finally left the port of Constanta, Romania, and is en-route to the firms SASB gas field.
The platform took off early on September 11, departing at roughly 3:30 AM UTC time. The drill platform is being accompanied by the GSP Antares offshore tug and supply ship, with transport currently underway at a speed of roughly 3.8 knots. The trip will see the tug haul the platform across the southwestern portion of the Black Sea to near Eregli, Turkey.
Once it arrives and setup is complete, the platform is expected to get underway with drilling the first hole under the firms planned seven-well program. The drill program will see the firm spend approximately $30 million in CapEx, which will see a new well come online approximately every 45 days, thanks in part to major infrastructure already being in place within the gas field.
The planned program is expected to be followed up with a 10 well exploratory drill program, which will be conducted in 2023-2024.
The company currently has high expectations for the program, with CEO Arthur Halleran stating last month in an interview with The Deep Dive that the company expects to produce $7.0 million in free cash flow per month at the end of the seven well program, based on the then-current price of natural gas in Turkey of US$21/mcf. In the time since, the price of natural gas in Turkey has risen by 47.6% for industrial customers, to US$30.68/mcf – a substantial increase in a short period of time, which further improves the potential economics of the drill program.
With repairs to the drill rig now evidently completed, it appears to be a matter of time before further development of the SASB field gets underway. The first well is now expected to be placed into production around the end of October.
Trillion Energy last traded at $0.49 on the CSE.
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