Trillion Energy is deeply undervalued and poised for a significant rerating explains CEO Art Halleran in this interview. The current cashflow of about US$2M from its oil production easily justifies the company’s US$10M market cap. But Trillion is currently getting no value for its SASB project’s US$608M of fully built-out infrastructure which is about to be producing natural gas in 2021. The company owns 49% of the SASB project in the Black Sea just off the cost of Turkey and has an offtake partner ready to purchase its gas.
Art has said that if he were to sell the project’s production platforms and processing facility for scrap metal it would be worth more than Trillion’s current US$10M market cap. Not only is Trillion’s liquidation value higher than its current market cap but the company also calculates the intrinsic value of its gas reserves at US$1.25/share while shares have only been trading between 6 and 8 cents US per share recently. And to further demonstrate how undervalued Trillion is, Art pointed out that a Columbian natural gas producer NG Energy has less than half of the reserves as does Trillion yet it has a current market cap of US$125M.
In addition to the clear fundamental value of the company, Trillion has tremendous blue sky potential on both its natural gas and oil license areas. The company’s SASB gas field is located just 100km south of the largest gas discovery in 30 years in Europe and is the only nearology play in the region. Trillion also owns a 100% interest in 42,833 hectares oil exploration block covering the northern extension of the prolific Iraq/Zagros Basin as well as in the Vranino 1-11 block in Bulgaria, a prospective unconventional natural gas property.
Art has already built several successful energy companies. Once such company is Canacol Energy which he co-founded and now has a US$500M market cap as the largest natural gas producer in Columbia. He has a Ph.D in geology and over four decades of experience in the gas and oil business. Art became involved with Trillion four years ago because of the quality of the SASB asset and has never sold even one share. He explained, “I'm going to hang onto my shares until I get the shares up to the value it should be.”
0:00 Introduction
1:35 Art has already built a US$500M energy company
3:04 SASB flagship gas asset severely undervalued
5:10 TCF has all infrastructure & gas buyer in place
5:51 TCF has cash-flowing oil asset on shore
6:17 US$20M needed to recommence gas production
8:54 Expecting cashflow approx. Aug 2021
9:44 TCF intrinsic value about $1.25 per share
10:41 TCF undervalued relative to peers
12:51 Expected FCF in 2022 is $1.2-$1.8M per month
15:15 Turkey as a jurisdiction
16:03 Turkey NatGas price $6-7 mcf which is higher than North America market
17:32 Plans to list on the London Stock Exchange
18:20 Share structure
https://trillionenergy.com/
CSE:TCF OTC:TCFF FSX:3P2N
Art's email: arth@trillionenergy.com
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