REG - Block Energy PLC - Commercial Carbon Capture and Storage Opportunity

Block EnergyAnnouncement

16/01/2024 07:01

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RNS Number : 7524Z  Block Energy PLC  16 January 2024

16 January 2024

 

Block Energy plc

("Block" or the "Company")

Study Concludes Block XIB Offers Commercial Carbon Capture and Storage
Opportunity

Block Energy plc, the development and production company focused on Georgia,
is pleased to announce a study identifying a Carbon Capture and Storage
("CCS") opportunity within the Company's Block XIB with the potential to
support a major net-zero CO(2) industrial hub.

The study, commissioned by the Company, estimates a CO(2) storage capacity
ranking - at both reservoir and basin scales - amongst the highest in Europe.
The reservoir scale storage is estimated at 256 million metric tonnes,
equivalent to offsetting emissions from 55 million cars, and the basin scale
at up to 8.7 gigatonnes, equivalent to offsetting emissions from Turkey for 20
years.

The research suggests Block XIB is best suited to the Mineral Trapping
(Mineralisation) method whereby CO(2) is injected with water and mineralises
as solid carbonates, a technique successfully used in Iceland to permanently
inject 100,000 tonnes of CO(2) to date into basaltic rock.

The Middle Eocene volcaniclastics facilitate the movement and efficient
containment of injected CO(2) and sections are abundant with Zeolites, highly
reactive minerals, enriched with substantial calcium, that enhance the
potential for successful and sustainable CCS by Mineralisation.

These and other supportive geological features, including an active aquifer
and ideal pressure and temperature conditions, indicate the possibility for a
very rapid rate of carbonation: initial calculations show 95% mineralisation
of CO(2) within 250 days, compared to 1,000 years in sedimentary systems.
Carbon storage capacity could be further enhanced by localised dissolution of
fractures, increasing pore space and pore volume.

The study, commissioned in the course of the Company's Project III development
planning, was undertaken by Oilfield Production Consultant ("OPC"), a
consultancy recognised internationally for its expertise and experience in
this field.

 

OPC have worked on the White Rose, Golden Eye, Gorgon and Viking projects, as
well as on projects in the Gulf of Mexico. The study was led by Professor Eric
Oelkers, a recognised expert in the field of water-rock interactions.

 

 

Block Energy plc's Chief Executive Officer, Paul Haywood, said:

"The CCS study opens another significant commercial opportunity for the
Company while underlining our commitment to sustainability.

"The study highlights that Block XIB's storage potential could be amongst the
largest in Europe, indicating the prospect of a major net-zero industrial hub
within central Georgia - of interest to the hydrogen, fertiliser, steel and
refined petroleum products industries - close to the XIB license."

 

**ENDS**

Stephen James BSc, MBA, PhD (Block's Subsurface Manager) has reviewed the
reserve, resource and production information contained in this
announcement. Dr James is a geoscientist with over 40 years of experience in
field development and reservoir management.

THIS ANNOUNCEMENT CONTAINS INFORMATION PREVIOUSLY DEEMED BY THE COMPANY TO BE
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.  WITH THE PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE, SUCH 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-listed independent oil and gas company focused on
production and development in Georgia, applying innovative technology to
realise the full potential of previously discovered fields.

Block has a 100% working interest in Georgian onshore licence blocks IX and
XIB. Licence block XIB is Georgia's most productive block. During the
mid-1980s, production peaked at 67,000 bopd and cumulative production reached
100 MMbbls and 80 MMbbls of oil from the Patardzeuli and Samgori fields,
respectively. The remaining 2P reserves across block XIB are 64 MMboe,
comprising 2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe.
(Source: CPR Bayphase Limited: 1 July 2015). Additionally, following an
internal technical study designed to evaluate and quantify the undrained oil
potential of the Middle Eocene within the Patardzeuli field, the Company has
estimated gross unrisked 2C contingent resources of 200 MMbbls of oil.

The Company has a 100% working interest in licence block XIF containing the
West Rustavi onshore oil and gas field. Multiple wells have tested oil and gas
from a range of geological horizons. The field has so far produced over 75
Mbbls of light sweet crude and has 0.9 MMbbls of gross 2P oil reserves in the
Middle Eocene. It also has 38 MMbbls of gross unrisked 2C contingent resources
of oil and 608 Bcf of gross unrisked 2C contingent resources of gas in the
Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1
January 2018).

Block also holds 100% and 90% working interests respectively in the onshore
oil producing Norio and Satskhenisi fields.

Project I is focused on developing oil production from the Middle Eocene
reservoir of the West Rustavi/Krtsanisi field.

Project II aims to redevelop the Middle Eocene reservoir of the Patardzeuli
and Samgori fields.

Project III is focused on the undeveloped gas-bearing natural fracture system
within the Lower Eocene and Upper Cretaceous reservoirs - each more than a
kilometre thick - spanning the XIB and XIF blocks.

Project IV is focused on exploring the full potential of our licences,
including licence IX and Didi Lilo where we have identified significant
prospectivity.

The Company offers a clear entry point for investors to gain exposure to
Georgia's growing economy and the strong regional demand for oil and gas.

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.

·    MD: measured depth.

·    MMbbls: million barrels.

·    MMboe: million barrels of oil equivalent.

·    MMcf: million cubic feet.

·    TVD: True Vertical Depth.

 

 

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