REG - Block Energy PLC - Completion of CCS Pilot Study

Block EnergyAnnouncement

16/02/2026 07:00

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RNS Number : 0435T  Block Energy PLC  16 February 2026

16 February 2026

 

Block Energy plc

("Block" or the "Company")

Completion of CCS Pilot Study

Block Energy plc, the production and development company focused on Georgia,
is pleased to announce that the Carbon Capture Storage ("CCS") Pilot Study at
the Patardzeuli Field has been successfully completed. A report, prepared by
Oilfield Production Consultants ("OPC"), confirms the technical viability of
permanent carbon storage at the site.

 

Highlights:

 

 ·   CCS Pilot Study completed, with successful injection and monitoring of aqueous
     carbon dioxide   within the Middle Eocene formation.
     °                                         Total of 13.64 tonnes of carbon dioxide dissolved in water injected.
 ·   Independent analysis by OPC indicates complete mineralisation of the injected
     carbon dioxide into stable carbonate minerals within one to three months.
     °                                         Laboratory analysis of representative samples confirmed the field-observed
                                               trends, validating the effectiveness of the mineralisation process.
 ·   Confirmation that the carbon dioxide remains securely stored in solid mineral
     form, with no evidence of gas phase migration or leakage.
 ·   Identification of favourable reservoir characteristics, including reactive
     volcaniclastic rocks and zeolite minerals, which promote rapid and permanent
     carbon mineralisation.
     °                                         Fractured volcaniclastic rocks facilitate fluid flow and reaction.
     °                                         Zeolite minerals react rapidly with carbon dioxide charged water, accelerating
                                               carbonate formation.
 ·   Under-pressured reservoir conditions, significantly reducing the energy and
     costs required for injection, and existing legacy well infrastructure enable a
     lower-cost deployment.
     °                                         Historic hydrocarbon production has resulted in an under-pressured reservoir,
                                               reducing injection energy requirements.
     °                                         Existing wells may be repurposed for injection and monitoring, limiting new
                                               drilling requirements.
     °                                         The location benefits from proximity to large industrial carbon dioxide
                                               emitters and established surface infrastructure which simplifies logistics and
                                               midstream requirements.

 

Independent Report Conclusions:

 

"'OPC's specialist for carbon dioxide mineralisation, Max Richards, noted that
the field pilot study validates all theoretical and laboratory studies that
demonstrate clear evidence that the Middle Eocene reservoir in the Patardzeuli
oil field will permanently mineralise all injected carbon dioxide

 

The Middle Eocene formation pilot project demonstrates a definitive pathway
for technical and commercial carbon sequestration at the Patardzeuli Oil
Field.

 

Field data and independent analysis confirm that the injected aqueous carbon
dioxide solution achieved full mineralisation within a rapid
one-to-three-month timeframe. The absence of carbon dioxide returns during the
monitoring phase validates the efficiency of the injection method and ensures
that the carbon is permanently fixed in a solid state. By transitioning the
carbon dioxide into stable carbonate minerals, a fundamental process within
the Earth's natural carbonate cycle, the project achieves permanent storage
and effectively eliminates the risk of atmospheric leakage. This
mineralisation process is a standard geological occurrence, which will not
compromise the existing reservoir."

 

Following these encouraging results, the Company is progressing to the next
phase of development, alongside its JV partner Rustavi Azot (a subsidiary of
Indorama Corporation). This stage involves a comprehensive feasibility study
to evaluate scalability and the infrastructure requirements for full-scale
commercialisation of CCS operations. The transition from pilot-scale injection
to industrial-level deployment will focus on leveraging existing legacy wells
and the under-pressured reservoir conditions to optimise the economic
framework for long-term carbon storage.

 

 

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

 

"The successful completion of this pilot is an important technical milestone
for the Company. The independent results confirm that rapid and permanent
mineralisation of carbon dioxide is achievable within the Patardzeuli
reservoir, which is a critical prerequisite for any scalable carbon storage
solution. These results provide the confidence required to progress to a
focused feasibility phase, where we will assess regulatory alignment,
scalability, and the potential commercial pathways for CCS, with our existing
partners."

 

 

Prakesh Kejriwari, Group Director of Indorama Corporation, commented:

 

"The pilot results are encouraging and demonstrate that mineral-based carbon
storage within the Patardzeuli Field is technically credible and aligned with
established geological processes. From an industrial perspective, the ability
to achieve rapid and permanent carbon fixation using existing infrastructure
is particularly encouraging, as it supports Indorama Corporation's ongoing
efforts to evaluate longer-term decarbonisation options and further implement
sustainable industrial practices across our worldwide operations to reduce the
carbon footprint."

 

 

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

 Philip Dennis

 Kathleen Beams

 (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,
progressed predominantly through partner funding alongside cash flow from
existing producing assets. 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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