REG - Block Energy PLC - Completion of Farm-Out Agreement

Block EnergyAnnouncement

09/03/2023 07:00

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RNS Number : 3698S  Block Energy PLC  09 March 2023

9 March 2023

 

Block Energy plc

("Block" or the "Company")

Completion of Farm-Out Agreement

Block Energy plc, the exploration and production company focused on Georgia,
announces completion of the farm-out of part of licence XIB to Georgia Oil and
Gas Limited ("GOG").

As announced on the 12(th) of December 2022, Block entered into binding
documentation concerning a farm-out of part of licence XIB to GOG. The
transaction has been completed, with Block now holding a 50% interest in the
new Didi Lilo and South Samgori areas of XIB.

GOG has completed the seismic activities agreed under the terms of the
farm-out agreement, specifically the acquisition and processing of 210 km 2D
seismic, reprocessing of 1,000 km of existing seismic data and initial
interpretation.

The Didi Lilo and South Samgori areas form part of GOG's broader portfolio,
covering some 13,500 km(2) which GOG estimate to hold total un-risked
prospective resource volumes of 3.1 TCF of gas and 1,400 MMbbl of oil, which
underpins its high-impact farm-out strategy.

Commenting, Paul Haywood, Block Energy CEO:

"We are pleased to have completed the previously announced farm-out of part of
XIB to GOG and to see the seismic obligation fulfilled. We look forward to
working on the seismic interpretation and progressing the project toward an
industry farm-out."

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

**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 8434 2643

 (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
XI(B). Licence block XI(B) 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 XI(B) 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 XI(F) 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.

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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