REG - Block Energy PLC - CCS Pilot Injection

Block EnergyAnnouncement

26/08/2025 07:00

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RNS Number : 6248W  Block Energy PLC  26 August 2025

26 August 2025

Block Energy plc

("Block" or the "Company")

Carbon Capture Storage CO(2) Pilot Injection

Block Energy plc, the development and production company focused on Georgia,
is pleased to announce that it has completed its initial injection of CO(2) as
part of the Carbon Capture Storage ("CCS") project.

Highlights:

·      CO(2) injection operations were successfully and safely executed.

·      Liquid CO(2) was delivered to the wellsite by Block's partner on
the pilot study, Rustavi Azot (a subsidiary of Indorama Corporation) and
injected in solution with water.

·      Previous work has confirmed connectivity between the injector
well (PAT-49) and the four monitoring wells (PAT-15, PAT-92, PAT-95 and
PAT-139).

·      No CO(2) leakage on surface was detected following the injection.

·      Comprehensive monitoring and verification programme in place with
the aim of proving mineralisation of CO(2) in the reservoir.

·      First successful pilot test of its kind in the broader Eastern
European region.

·      Provides pathway to project commercialisation opportunities.

Commenting, Paul Haywood, Block Energy Chief Executive Officer said:

"We are proud to have delivered the region's first successful CO(2)
mineralisation injection pilot, having done so through our own cash resources.
This represents an important milestone for Block, Georgia and our partner on
the pilot project, Indorama, as we seek to demonstrate the viability of
large-scale, low-cost CCS. This pilot injection paves the way for commercial
engagement with industrial partners and carbon markets and we now look forward
to building on this success."

Commenting, Prakash Kejriwal, Group Director of Indorama Corporation said:

"We are pleased to highlight that the first CO₂ mineralisation project in
Georgia has been successfully implemented with the support of Rustavi Azot
Indorama. This pilot provides valuable insights into how carbon capture and
mineralisation can be applied on an industrial scale, helping reduce emissions
and align with future EU carbon regulations. As one of the country's largest
industrial producers, it demonstrates our potential to be at the forefront of
advanced carbon management technologies while strengthening our
competitiveness in global markets. This milestone also reflects Indorama
Corporation's broader commitment to reducing its environmental footprint and
advancing sustainable industrial practices across all our production sites
worldwide."

Injection Operation:

This update is further to the announcements of 14 April 2025 and 12 August
2025. During the pilot injection, a total of 13.6 tonnes of liquid CO(2) was
injected into the reservoir along with 300m(3) of water and sodium
fluorescence tracer at pressures of 120 - 130 bar. Following data review, it
is likely that injection rates will be optimised providing the potential to
increase per-well injection capacity.

No CO(2) was detected at surface during or immediately following the
injection, with sampling occurring on the injection well and the monitoring
wells prior, during and after the injection.

The original study by Oilfield Production Consultants (OPC) (2023) into the
storage capacity at Patardzueli-Samgori ascribed a total volume of 151.5 Mt in
the mid case.

Pilot and Next Steps:

The successful injection of CO(2) is the first mineralisation project of its
kind in the broader Eastern European region and positions Block as a
first-mover in the space.

A detailed monitoring and verification plan is in place and underway in which
the Company will collect subsurface samples and analyse data to determine if
the injected CO(2) has mineralised into solid calcium carbonate (and therefore
be permanently stored). Unlike 'conventional' carbon storage technology, the
CO(2) is converted in the reservoir through reactions in the reservoir
minerals into solid rock and therefore the requirement for high-cost
monitoring and verification procedures (such as 4D seismic) is not required.

Pre-injection work including subsurface rock sampling analysis, determination
of pressure communication and dye tracer analysis between the injector well
and the monitoring wells was completed, giving confidence in the Company's
ability to determine if the CO(2) has mineralised as forecast.

It is expected that it will take 4-6 months to determine if the CO(2) has
successfully mineralised in the reservoir and therefore proceed to the next
steps in the project.

Assuming that mineralisation is proven from the pilot, then this will provide
a credible and tangible pathway to commercialisation opportunities through
third-party verification and a solution to carbon emissions reduction within
Georgia and potentially the wider region.

Commercial efforts are currently focused on direct air capture technologies as
well as engagement with industrial emitters seeking carbon reduction
solutions, including in response to the EU's upcoming Carbon Border Adjustment
Mechanism. Georgia and the EU have a zero-tariff free-trade agreement in
place, offering additional opportunities to this route.

Work is ongoing on commercialisation options, including discussions with
Indorama Corporation, as well as work on field scale development scenarios.

**ENDS**

For further information please visit http://www.blockenergy.co.uk/ or contact:

 Paul Haywood                Block Energy plc                 Tel: +44 (0)20 3468 9891

 (Chief Executive Officer)
 Neil Baldwin                Spark Advisory Partners Limited  Tel: +44 (0)20 3368 3554

 James Keeshan

 (Nominated Adviser)
 Peter Krens                 Tennyson Securities              Tel: +44 (0)20 7186 9030

 (Corporate Broker)
 Mark Antelme                Celicourt Communications         Tel: +44 (0)20 7770 6424

 Philip Dennis

 Ali AlQahtani

 (Financial PR Adviser)

 

Notes to editors

Block Energy plc is an AIM quoted independent oil and gas production and
development company with a strategic focus on unlocking the energy potential
of Georgia. With interests in seven Production Sharing Contracts in central
Georgia, covering an area of 4,256 km2, including the XIB licence which has
over 2.77TCF of 2C contingent gas resources, with an estimated Net Present
Value 10 ("NPV") of USD 1.65 billion, in the Patardzueli-Samgori, Rustavi and
Teleti fields. (Source: IER, OPC 2024 & Internal estimates).

The Company has structured its operations around a four-project strategy.
These projects, characterized by development stage, hydrocarbon type, and
reservoir, are pursued concurrently to achieve multiple objectives. This
includes increasing existing production, redeveloping fields, discovering new
oil and gas deposits, and capitalizing on the substantial, yet untapped, gas
resource across its licences. The goal is to deliver on multi TCF gas assets,
strategically well located for the key EU market, supported by partner funding
and cash from existing producing assets.

Located near the Georgian capital of Tbilisi, Block Energy is well-positioned
to contribute significantly to the region's energy landscape. This proximity
facilitates seamless operations and underscores our commitment to the economic
and energy development of Georgia.

 

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