Trillion Energy International’s Uranus rig has arrived on site for drilling offshore Turkey, with the aim of bringing on new gas production by the end of October.
Turkey’s TPAO reported Uranus had reached the well site in the Black Sea’s South Akçakoca Sub-Basin. The Turkish company reported that it would begin work in the coming days.
Canada-based Trillion said on September 6 the Grup Servicii Petroliere (GSP) owned rig would arrive on September 11 at the SASB gas field.
Trillion CEO Arthur Halleran has noted the attractive economics of producing in Turkey.
The company can sell its gas for US$30.68 per 1,000 cubic feet, he said. A presentation in July showed gas prices of $18.
“We expect further upward price pressure on natural gas to occur over the winter.”
Starting production in late October will allow Trillion to capture high gas prices, he said.
The company must pay a 12.5% royalty on production, while opex costs are only $1 per 1,000 cubic feet. Trillion has a 49% stake in SASB, while TPAO has the other 51%.
The Uranus rig is scheduled to drill 17 wells, between 2022 and 2024. There are four gas platforms on location, with a 16 km pipeline tied back into an onshore plant. Gross project costs are $608 million, with Trillion responsible for 49%.
Wells are expected to come online every 45 days, the company has said, which will generate cashflow to sustain drilling.
Trillion has also noted the presence of additional exploration prospects around SASB. The company reports 13 more prospects, close to the platforms.
Once production has begun, Trillion plans to begin exploring – with a focus on finding large gas fields. The company has pointed to the Tuna-1 and Amasra-1 discoveries in the same basin.
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