Mr. Arthur Halleran reports

TRILLION ENERGY ANNOUNCES FIRST QUARTER RESULTS AND OPERATIONAL UPDATE

Trillion Energy International Inc. has released its financial results for the three months ended March 31, 2023, and provided an operational update.

President and chief executive officer Arthur Halleran commented:

"We achieved record revenues this quarter, based on production from our first two wells increasing our revenue to over $6.15-million (U.S.) ($8.3-million (Canadian)). We look forward to experiencing further significant revenues growth during our second quarter 2023 based on our now four producing wells. Our focus is adding additional production at the SASB natural gas field, where we expect to add a fifth production well to be brought on production later this week."

Operational update

The company is well on its way in its multiwell drilling program at SASB, having now completed its fifth well. Additional development on the SASB field in 2023 is expected to include several more long-reach directional wells.

The Bayhanli-2 well, which the company spudded on April 5 and which reached total depth (TD) of 3,425 metres on May 13, is currently being tested, where seven perforations have been successfully completed. Flow testing is expected to be completed over the next few days.

Financial and operating highlights -- first quarter of 2023

All dollar figures are in U.S. dollars, except as otherwise noted.

For the first quarter, Trillion's average daily sales reached a new quarterly record, with Q1 2023 sales of $6.15-million (U.S.) ($8.3-million (Canadian)) (plus 6 per cent from Q4 2022 and 559 per cent from Q1 2022).

Natural gas prices averaged $22.26 (U.S.) effective for all natural gas sales between Jan. 1, 2023, and March 31, 2023. Higher realized prices and daily sales volumes for Trillion's natural gas resulted in the revenue increase.

As of March 31, 2023, the gross gas production rate for SASB was 12.6 million cubic feet per day (mmcfd) (100-per-cent interest), a significant increase due to two additional wells entering production just prior to month-end. The average daily 2023 gross gas production rate for the SASB field is 7.75 million cubic feet per day (100-per-cent interest).

Trillion reported net income of $2.2-million (U.S.) in Q1 2023, an improvement of $4.2-million (U.S.) compared with Q1 2022.

Oil and gas capital expenditures totalled $6.64-million (U.S.), including well costs for Guluc-2 and Akk-West on the SASB field, seismic reprocessing costs for SASB, and long-lead purchases. Total oil and gas assets rose to $36.7-million (U.S.).

Proved and probable conventional natural gas reserves (P2) increased to 63.3 billion cubic feet (bcf), up from 48.6 billion cubic feet (year-end 2022), an increase of 30 per cent as at Jan. 31 2023, as assessed by independent third party report.

Trillion's cash improved to $2.38-million (U.S.) and working capital was negative $7.4-million (U.S.) at March 31, 2023.

The consolidated financial statements with the management's discussion and analysis (MD&A) are available on Trillion's website, the Canadian Securities Exchange website and SEDAR.

Trillion is focused on natural gas production for Europe and Turkey with natural gas assets in Turkiye. The company is 49 per cent owner of the SASB natural gas field, one of the Black Sea's first natural gas development projects, and holds a 19.6-per-cent (except three wells with 9.8 per cent) interest in the Cendere oil field onshore Turkiye.

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