REG - Block Energy PLC - CCS Update

Block EnergyAnnouncement

26/11/2024 07:00

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RNS Number : 5194N  Block Energy PLC  26 November 2024

26 November 2024

 

Block Energy plc

("Block" or the "Company")

CCS Phase 2

Block Energy plc, the production and development company focused on Georgia,
is pleased to announce the start of phase 2 studies for the Company's Carbon
Capture and Storage ("CCS") opportunity in licence XIB.

 

The studies will be undertaken in partnership with Rustavi Azot, a subsidiary
of Indorama Corporation, in accordance with the previously announced
Memorandum of Understanding ("MoU")
(https://polaris.brighterir.com/public/block_energy/news/rns/story/w94g1dx) .
Technical support will be provided by Oilfield Production Consultants Ltd
("OPC"), which originally defined the potential of the licence for carbon
sequestration.

 

Phase 2 will include desktop and laboratory studies followed by a pilot
injection scheme designed to achieve a monitoring and verification plan for
carbon storage, allowing commercialisation of the project.

 

Three commercialisation options have already been identified, encompassing
both the mandatory and voluntary carbon markets. Part of the study will focus
on further definition of commercialisation.

 

The technology proposed for the storage of CO(2) in the Middle Eocene is
similar to that successfully deployed by CarbFix in Iceland as well as the
ongoing pilot by 44.01 in the United Arab Emirates. CO(2) will be dissolved in
water and injected into the zeolite rich Middle Eocene reservoir, where it is
expected that the carbon dioxide will mineralise into calcium carbonate, a
process through which the majority of CO(2) would be sequestered in less than
12 months.

 

The project is expected to benefit from low costs facilitated by the re-use of
existing field infrastructure and proximity to sources of industrial
emissions. Water for the scheme will be recycled from the existing Middle
Eocene aquifer, a non-potable aquifer of significant size. The extensive
contribution of hydro to Georgia's electricity grid further enhances the
project's environmental credentials.

 

Following the results of the stage 2 studies, which will include a workover
and the recompletion of a Patardzueli well, Block and Rustavi Azot will work
together to target the pilot injection of CO(2) into the reservoir in Q1 2025.

 

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

"We are excited to advance to Phase 2 studies for our CCS project in
partnership with Indorama. This project represents a crucial step in our
commitment to climate action and aligns with our ESEG values as we embark on
developing the broader strategies across our portfolio.

We have engaged in productive discussions with interested parties concerning
long-term commercialization and scalability. Now, we look forward to
transforming the project from concept to reality, seeking proof of concept,
around injecting CO(2) into the reservoir for permanent storage. By employing
mineralization, a maturing technology, we can offer a cost-effective solution
that stands apart from conventional offshore carbon storage methods.

The upcoming pilot injection and monitoring plan signify major progress toward
commercialization and full-scale development. I look forward to updating
shareholders on further milestones as we continue to push boundaries in
low-carbon energy solutions."

 

Commenting, Mr. Prakash Kejriwal, Group Director, Eurasia Indorama
Corporation said:

 

"We are pleased to partner with Block Energy to carry out this pilot project.
Indorama is committed to reducing GHG and this collaboration brings an
opportunity for Rustavi Azot to potentially reduce its CO2 emission at the
site by applying technology for CCS.

 

We look forward to the success of the pilot and moving into the commercial
scale CCS."

 

**ENDS**

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER
THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF
ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

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

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

 (Corporate Broker)
 Philip Dennis / Mark Antelme / Ali AlQahtani   Celicourt Communications         Tel: +44 (0)20 7770 6424

 (Financial PR)

 

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.

Glossary

·    bbls: barrels. A barrel is 35 imperial gallons.

·    Bcf: billion cubic feet.

·    boe: barrels of oil equivalent.

·    boepd: barrels of oil equivalent per day.

·    bopd: barrels of oil per day.

·    Mbbls: thousand barrels.

·    Mboe: thousand barrels of oil equivalent.

·    Mcf: thousand cubic feet.

·    MMbbls: million barrels.

·    MMboe: million barrels of oil equivalent.

·    MMcf: million cubic feet.

 

 

 

 

 

 

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