Mr. Arthur Halleran reports

TRILLION ENERGY ANNOUNCES 2024 GUIDANCE

Trillion Energy International Inc. has provided an update on the SASB gas project, announced its 2024 capital budget and provided production guidance. All dollar amounts are in United States dollars and all production volumes are on a working-interest basis unless otherwise stated.

SASB operational update

Trillion is currently undertaking a work program to optimize production on the SASB field to ensure all six previously drilled and completed wells are able to produce concurrently on a managed basis. These operational initiatives will include the following:

• This week, a booster compressor is being added at the Cayagzi gas process facility to reduce the inlet pressure (which is currently 125 pounds per square inch (psi) to 135 psi) down to 50 psi to 60 psi. This upgrade is expected to add an additional 4.9 to 5.3 MMcf/d (million cubic feet per day) production across the wells.
• Perforation of 37 metres of additional pay in three of the six production wells to occur in October, 2023.
• Installation of artificial lift to reduce water loading in two of the six wells. Once the optimal design is confirmed and tested, ESP pumps will be installed in all wells that could benefit from artificial lift to maintain long-term production.
• A third party engineering firm has been engaged to make recommendations on optimizing production and facility operations.
• ESP pump to be installed with 2-3/8-inch production tubing in the 4.5-inch casing is expected to reduce water head pressure in selected wells.

Two thousand twenty-three exit guidance

Based on completing the above optimized production operations, Trillion anticipates the combined production rate from the six wells as shown in the associated table.

Two thousand twenty-four capital program

Trillion is planning the following activities and budgeted capital expenditures for the 2024. Currently, Trillion has $1.7-million (U.S.) of net cash on hand and 77.9 million common shares outstanding; on a fully-diluted basis, Trillion has 79.2 million in-the-money (ITM) fully diluted shares outstanding with ITM proceeds of approximately $800,000:

• SASB gas field development: To meet the 2024 production guidance, the company plans to drill five new sidetracked production wells from existing platforms, to raise the total number of producing wells to 11.
• SASB gas field exploration: The company plans to drill at least one exploration well targeting potential stratigraphic natural gas prospects (the current six wells are structural deposits).
• High impact oil exploration: During 2024, the company plans to complete seismic acquisition and drill two exploration wells at its oil exploration blocks in southeast Turkey. The wells' locations will be determined based on the planned seismic acquisition commencing in Q4 2023. The oil exploration program planned is potentially very high impact, given the geological setting and series of recent new discoveries made in the region.

Capital program budget (the 2024 capex (capital expenditures) program):

• SASB (workovers and five sidetrack wells) -- $26-million (U.S.);
• Oil block exploration -- $9-million (U.S.);
• Total capital expenditures -- $35-million (U.S.).

Arthur Halleran, chief executive officer, commented: "We are 100 per cent focused on realizing the production potential at SASB through both our current and future development programs. Over all, we are pleased with the amount of gas we have discovered in our initial six wells and now it is time to profit from it. With SASB well on its way, we also look exploring to adding high impact oil exploration to Trillion for 2024 in the prolific Cudi-Gabar oil petroleum province."

Two thousand twenty-four guidance

Based on its 2024 capex program, Trillion is forecasting the following combined production rate once the additional five-well capital program at SASB has been completed, such that all 11 wells at SASB are concurrently producing. For further clarity, the guidance provided in the table entitled "2024 guidance summary" does not include any forecasted volumes for the high-impact oil exploration program noted herein.

About Trillion Energy International Inc.

Trillion Energy is focused on natural gas production for Europe and Turkiye with natural gas assets in Turkey. The company is 49-per-cent owner of the SASB natural gas field, one of the Black Sea's first and largest-scale natural gas development projects, and has a 19.6-per-cent (except three wells with 9.8-per-cent) interest in the Cendere oil field. The company also has recently farmed into three oil exploration blocks in northeast Turkey.

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