Trillion Energy Announces Successful SASB Gas Production, Highlighted by

President & CEO, Corey C. Ruttan commented:

“We continue to post strong financial results with a Q2 2024 operating netback of $64.30 /boe and funds flow from operations of $7.9 million . We are also pleased to announce a significant 49% increase in production as we start the third quarter.

Alvopetro has a disciplined capital allocation model whereby roughly half of our funds flow from operations are intended to be reinvested in organic growth and the other half in returns to stakeholders. We have already returned $43.8 million ( $1.22 /share) to shareholders through dividends and we plan to complement these stakeholder returns through a share repurchase program. Our organically funded capital program is intensifying, we are planning a very busy second half of the year and we expect to have key results from initial activities to announce later this quarter.”

Operational Update

July Sales Volumes

July sales volumes increased 49% over Q2 2024, averaging 2,432 boepd, including natural gas sales of 13.8 MMcfpd, associated natural gas liquids sales from condensate of 118 bopd and oil sales of 19 bopd, based on field estimates. To address continued impacts resulting from reductions in natural gas demand in the state of Bahia, Alvopetro and Bahiagás have agreed to review natural gas pricing on interruptible sales volumes (those volumes above our 300,000 m3/d (10.6 Mmcfpd) of Firm contracted sales) on a monthly basis. We expect nominations in August to be consistent with our July sales.

Development Activities

We completed the planned chemical injection program in our 197-1 well, the well is back online, and we are monitoring the effectiveness of the chemical program. We have initiated the recompletion of our 183-1 well in an uphole Caruaçu zone and expect to bring the well online through our Murucututu production facility this quarter. In parallel, we are finishing the completion of our 183-A3 well. This well was drilled to a total measured depth of 3,540 metres and based on open-hole logs, the well encountered potential net natural gas pay in both the Caruaçu Member of the Maracangalha Formation and the Gomo Member of the Candeias Formation, with an aggregate 127.7 metres total vertical depth of potential natural gas pay, using a 6% porosity cutoff, 50% Vshale cut-off and 50% water saturation cutoff. We also plan to have this well on production through our Murucututu production facility later this quarter.

Semi-Annual Natural Gas Pricing Update

Effective August 1, 2024 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL1.945 /m ³ or $10.83 /Mcf (based on average heat content to date, the July 31, 2024 BRL/USD exchange…