Trillion Energy Comments on Rising Oil Prices

• Date: 2026-04-27 (Most Recent)
• Headline: Trillion Energy Comments on Rising Oil Prices
• Core Message: Management highlights that Brent crude trading above US$100/bbl significantly improves the economics of their M47 exploration programme compared to the valuation base price of US$63.68/barrel used in the April 2025 independent evaluation.
• Asset Valuation: The M47 project holds an unrisked NPV-10 of US$733.5 million (net to Trillion's 29% interest) based on lower price assumptions; current prices imply substantial upside to this valuation.
• Work Program: Company committed US$15 million across 2026 and 2027 to advance exploration drilling in Southeastern Turkey.
• Context: This follows a series of announcements from mid-April including a light oil discovery, an independent resource evaluation ($733.5M NPV), a $2 million private placement, and a 5:1 share consolidation.

• Valuation Upside: The shift from US$63.68 to >US$100/bbl represents a potential ~57% increase in revenue assumptions for the M47 project economics, materially enhancing the asset's theoretical value relative to the company's small market cap (~$7.5M).
• Sentiment vs. Substance: While positive, this is commentary on existing valuation metrics announced April 16 (Resource Evaluation) rather than a new operational milestone like a drilling result or major financing closure. The core material news was already priced in during the mid-April spike to $0.20-$0.30 range.
• Capital Gap Risk: Despite the positive oil price commentary, the company faces a significant funding gap. The April 17 financing raised only US$2 million, with only ~US$400k earmarked for M47 obligations against a required US$9.5 million tranche for 2026 work programs.
• Debt Overhang: Outstanding convertible debentures total approximately CAD $16.4 million (as of Jan 31, 2026). A condition exists to raise CAD $10 million by September 30, 2026, or the debt becomes immediately payable. This creates a binary risk scenario for equity holders in H2 2026.
• Conclusion: The news is positive for asset valuation but does not resolve the immediate liquidity constraints required to execute the drilling program. It reinforces the "buy" thesis on the asset quality but highlights the execution risk regarding capital raising.

• Company: Trillion Energy International Inc. (TCF/TRLEF).
• Flagship Project: M47 Block (C3 and C4 licences), Southeastern Turkey (Cudi-Gabar petroleum province).
• Working Interest: 29% earn-in working interest.
• Resource Estimate: Independent NI 51-101 evaluation (Dec 31, 2025) identified 27.6 MMbbl Contingent Resources at the North Prospect.
• Valuation: Unrisked NPV-10 of US$733.5 million net to Trillion's interest (based on $63.68/bbl).
• Oil Quality: Confirmed 32.4° API light oil (premium grade) at Çetinkaya C-1 well.
• Location: Approximately 11 km from Turkey's largest onshore discovery, the Şehit Aybükе Yalçın field (>1 billion barrels).