Mr. Arthur Halleran reports

TRILLION ENERGY ANNOUNCES SECOND QUARTER - JUNE 30 2023 RESULTS

Trillion Energy International Inc. has released its financial results for the three-month and six-month periods ended June 30, 2023, and an operational update on efforts to increase production from the six SASB gas wells.

President and chief executive officer Arthur Halleran commented:

"After successfully completing six wells, our focus now turns to maximizing production of the wells targeting parity with historical production rates, through system tweaks and other means of resolving production bottlenecks. We have now engaged a third party provider to provide a quotation and recommendations for increasing production from the six wells. The important takeaways will provide guidance for standard operating procedures in the next phase of SASB gas wells."

Operational update

Trillion has now drilled five successful long-reach directional wells and one recompletion at SASB and will continue to take steps to optimize production. To increase production, Trillion has contracted a service provider to present recommendations for a slimhole ESP (electric submersible pump), power cables, pump control surface equipment and electric power supply for West Akcakoca-2 and Akcakoca-3. At the end of August, pump selection will be made. Reperforation of South Akcakcoa-2 will occur around the same time followed by Guluc-2.

Trillion's focus is on increasing production on the existing six wells to match production rates previously achieved from the eight legacy wells. It believes that past production history is a useful analog for predicting future production trends and results. To predict future production at the three tripod gas fields (Akkaya, East Ayazli and Ayazli), past production profiles were evaluated and assumed to represent a middle case for Trillion's five newly drilled wells and the one recompletion. The historic tripod production (commencing 2007) averaged 15.4 MMcf/d (million cubic feet per day) for 34 months (gross), after which production went into a hyperbolic decline and averaged a daily production of 12.95 MMcf/d for the next 12 months and averaged a daily production of 6.88 MMcf/d for the following 12 months, and 4.1 MMcf/d for the next 12 months and then continued for many more years at over two MMcf/d.

Financial and operating highlights -- second quarter of 2023:

• Gross gas production to Trillion for the SASB gas field averaged 8.16 MMcf/d (100-per-cent interest) in Q2 2023, an increase of 2.42 MMcfd (over 42 per cent) compared with Q1 2023 (5.74 MMcfd).
• By the end of Q2 2023, the company had five producing wells and a combined average total daily Q2 2023 production rate of 8.16 MMcf/d (100-per-cent interest). Each well produced for an average of 1.5 months during the quarter.
• Total Q2 2023 revenue of $5.8-million (U.S.) ($7.8-million (Canadian)), an increase of 288 per cent from Q2 2022.
• Natural gas prices averaged $13.11 (U.S.) effective for all natural gas sales between April 1, 2023, to June 30, 2023, compared with $21.66 (U.S.) in Q1 2023 (minus 39 per cent).
• Operating income of $613,232 (U.S.) for the three months ended June 30, 2023, compared with an operating loss of $616,660 (U.S.) for the three months ended March 31, 2022.
• For the three months ended June 30, 2023, oil and gas capital expenditures totaled $12.2-million (U.S.), net of JV (joint venture) contributions, including well costs for Bayhanli-2 and Alapi-2 wells, seismic reprocessing costs and long-lead purchases. Wells costs for Alapli-2 are included, but production of this well does not start until Q3 2023.
• The company closed a convertible debenture financing for gross proceeds of $15-million (Canadian) (approximately $11-million (U.S.)).
• During Q2 2023, the company completed and put into production the Bayhanli-2 well with initial gross flow rates of eight MMcf/d to nine MMcf/d. The company also spud the Alapi-2 well in June, 2023, which was put on production in Q3 2023 (August, 2023), at an initial gross rate of 8.7 MMcf/d.

An attached table provides a summary of Trillion's financial and operating results for three and six months ended June 30, 2023, and June 30, 2022. The consolidated financial statements with the management's discussion and analysis (MD&A) are available on the company's website and will be available on the SEDAR-plus website.

About Trillion Energy International Inc.

Trillion is an oil-and gas-producing company with multiple assets throughout Turkey and Bulgaria.

We seek Safe Harbor.