REG - Block Energy PLC - Corporate Update

Block EnergyAnnouncement

06/04/2023 07:00

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RNS Number : 5392V  Block Energy PLC  06 April 2023

 

6 April 2023

Block Energy plc

("Block" or the "Company")

Corporate Update

Termination of Salary Sacrifice

Issue of Options and Shares and PDMR Dealing

 

Termination of the Salary Sacrifice Scheme

Block Energy plc, the development and production company focused on Georgia,
is pleased to announce that it is terminating the Salary Sacrifice scheme as
of 1(st) April 2023. The decision is based on the Company's improved financial
position. Well WR-B01Za continues to produce naturally at an average rate of
274 boepd (247 bopd oil & 4,700 m(3)/d gas) without the need for
artificial lift. The well result, combined with our continuing improved
understanding of the reservoir gained by the calibration of our detailed
geophysical studies, provides great confidence that further horizontal wells
into the West Rustavi/Krtsanisi Middle Eocene reservoir will be successful and
Project 1 achieved.

The Salary Sacrifice scheme was originally put in place in April 2020,
following a collapse of the Brent price and operational issues due to the
global Covid-19 pandemic, to preserve capital and ensure that completion and
integration of the Schlumberger transaction was achieved.

Commenting, Paul Haywood, Block Energy CEO said:

"I'd like to extend a sincere thank you to all the employees and directors who
participated in our salary sacrifice scheme. The scheme was put in place
during the global pandemic to preserve capital and has since helped the
Company in developing its strategy and undertaking capital investment in the
assets. Given the latest positive well results, which support our cash
position, we have decided to terminate the salary sacrifice scheme.

"Once again, a heartfelt thank you to all who participated in this important
initiative."

Final Issue under the Salary Sacrifice Scheme

On 5 April 2023, the Company issued nil-cost options over a total of 3,702,501
ordinary shares of 0.25p each ("Options") to directors and employees. The
Options were granted in lieu of cash payment for 40% of salaries and up to 50%
of directors' fees, in accordance with the cash conservation measures
announced on 7 April 2020 and subsequent agreements with the employees and
non-executive directors for fees to be paid in nil-cost options in lieu of
cash payment. The number of shares was calculated by dividing the amount of
monthly salary or fee to be paid in Options by the volume weighted average
price of the ordinary shares during the calendar month that the services were
provided.

Also, pursuant to agreements to exercise options immediately upon grant, on 5
April 2023:

1.    Philip Dimmock, Non-Executive Chairman, exercised nil cost options to
acquire 724,602 ordinary shares of 0.25 pence each; and

2.    Jeremy Asher, Non-Executive Director, exercised nil cost options to
acquire 675,423 ordinary shares of 0.25 pence each.

Of the total number of Options granted, 2,097,933 Options were granted to
PDMRs, as shown in the table below.

 PDMR            Position                 Number of Options granted  Number of Options exercised  Resulting total options held over ordinary shares  Resulting total ordinary shares following exercise  Resulting total ordinary shares following exercise
 Paul Haywood    Chief Executive Officer  697,908                    0                            61,947,783                                         12,544,381                                          1.82%
 Philip Dimmock  Non-Executive Chairman   724,602                    724,602                      928,612                                            3,982,674                                           0.58%
 Jeremy Asher    Non-Executive Director   675,423                    675,423                      0                                                  2,347,830                                           0.34%

 

Additionally, on 5 April 2023, the Company allotted 476,388 ordinary shares of
0.25p each to two service providers in lieu of cash settlement for services
provided to the Company with a total value of £4,782.93. Of such, 298,805
ordinary shares of 0.25p to a value of £3,000 were allotted to a company
controlled by Ken Seymour (Block's Chief Operating Officer and a PDMR) as
payment for services in March 2023.

The Company also allotted 5,613,122 shares of 0.25p each to current and former
employees following the exercise of nil cost options that had been granted in
lieu of cash payment for bonuses and part of salaries. These shares were
settled from shares already issued to the Company's Employee Benefit Trust.

Application will be made for the admission to trading on AIM ("Admission") for
the 1,876,413 ordinary shares. The ordinary shares will rank pari passu in all
respects with the existing ordinary shares of the Company. Admission is
expected at 8.00 a.m. on or around 13 April 2023.

Total Voting Rights

Following Admission, the Company's issued share capital will comprise
689,551,104 ordinary shares with one voting right each. As the Company does
not hold any shares in Treasury, the total number of voting rights in the
Company is also 689,551,104 and this figure of ordinary shares may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to
their interest in, the share capital of the Company under the FCA's Disclosure
Guidance and Transparency Rules.

**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/ 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 8434 2643

 Philip Dennis

 Ali AlQahtani

 (Financial PR Adviser)

 

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) has 2P reserves of 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. Licence block XI(B) is
Georgia's most productive block, with historical production of over
180 MMbbls of oil from the Middle Eocene, peaking in the mid-1980s at
67,000 bopd.

The Company has a 100% working interest in licence block XI(F), which contains
the West Rustavi onshore oil and gas field. Multiple wells have tested oil and
gas from a range of geological horizons. The field has 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.

·    bopd: barrels of oil per day.

·    Mbbls: thousand barrels.

·    MMbbls: million barrels.

·    MMboe: million barrels of oil equivalent.

Notification and public disclosure of transactions by persons discharging
managerial responsibilities ("PDMRs") and persons closely associated ("PCA")
with them.

 

 1   Details  of  the  person  discharging  managerial  responsibilities  /  person  closely
     associated
 a)  Name                                                                                             Paul Haywood
 2   Reason for notification
 a)  Position / status                                                                                CEO
 b)  Initial notification                                                                             Initial notification

     /Amendment
 3   Details of the issuer,  emission allowance market participant, auction platform,
     auctioneer or auction monitor
 a)  Name                                                                                             Block Energy plc
 b)  LEI                                                                                              213800E2J8QA1J6KN415
 4   Details of the transaction(s):
     section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
 a)  Description of the financial instrument, type of instrument                                      Options to acquire ordinary shares in Block Energy plc

     Identification code                                                                              ISIN GB00BF3TBT48
 b)  Nature of the transaction                                                                        Grant of share options
 c)  Price(s) and volumes(s)

Price(s)  Volumes(s)
                                                                                                      0p        697,908

 
 d)  Aggregated information                                                                           n/a
 e)  Date of the transaction                                                                          5 April 2023
 f)  Place of the transaction                                                                         Outside a trading venue

 

d)

Aggregated information

n/a

e)

Date of the transaction

5 April 2023

f)

Place of the transaction

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging
managerial responsibilities ("PDMRs") and persons closely associated ("PCA")
with them.

 

 

Notification and public disclosure of transactions by persons discharging
managerial responsibilities ("PDMRs") and persons closely associated ("PCA")
with them.

 

 1   Details  of  the  person  discharging  managerial  responsibilities  /  person  closely
     associated
 a)  Name                                                                                             Philip Dimmock

 2   Reason for notification
 a)  Position / status                                                                                Non-Executive Chairman
 b)  Initial notification                                                                             Initial notification

     /Amendment
 3   Details of the issuer,  emission allowance market participant, auction platform,
     auctioneer or auction monitor
 a)  Name                                                                                             Block Energy plc
 b)  LEI                                                                                              213800E2J8QA1J6KN415
 4   Details of the transaction(s):
     section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
 a)  Description of the financial instrument, type of instrument                                      Options to acquire ordinary shares in Block Energy plc

     Identification code                                                                              ISIN GB00BF3TBT48
 b)  Nature of the transactions                                                                       1) Grant of share options

                                                                                                      2) Exercise of share options
 c)  Price(s) and volumes(s)

Price(s)  Volumes(s)
                                                                                                      1) 0p     1) 724,602

                                                                                                      2) 0p     2) 724,602

 
 d)  Aggregated information                                                                           n/a
 e)  Date of the transactions                                                                         5 April 2023
 f)  Place of the transactions                                                                        Outside a trading venue

 

d)

Aggregated information

n/a

e)

Date of the transactions

5 April 2023

f)

Place of the transactions

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging
managerial responsibilities ("PDMRs") and persons closely associated ("PCA")
with them.

 

 1   Details  of  the  person  discharging  managerial  responsibilities  /  person  closely
     associated
 a)  Name                                                                                             Jeremy Asher
 2   Reason for notification
 a)  Position / status                                                                                Non-Executive Director
 b)  Initial notification                                                                             Initial notification

     /Amendment
 3   Details of the issuer,  emission allowance market participant, auction platform,
     auctioneer or auction monitor
 a)  Name                                                                                             Block Energy plc
 b)  LEI                                                                                              213800E2J8QA1J6KN415
 4   Details of the transaction(s):
     section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
 a)  Description of the financial instrument, type of instrument                                      Options to acquire ordinary shares in Block Energy plc

     Identification code                                                                              ISIN GB00BF3TBT48
 b)  Nature of the transactions                                                                       1) Grant of share options

                                                                                                      2) Exercise of share options
 c)  Price(s) and volumes(s)

Price(s)  Volumes(s)
                                                                                                      1) 0p     1) 675,423

                                                                                                      2) 0p     2) 675,423

 
 d)  Aggregated information                                                                           n/a
 e)  Date of the transactions                                                                         5 April 2023
 f)  Place of the transactions                                                                        Outside a trading venue

 

d)

Aggregated information

n/a

e)

Date of the transactions

5 April 2023

f)

Place of the transactions

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging
managerial responsibilities ("PDMRs") and persons closely associated ("PCA")
with them.

 

 1   Details  of  the  person  discharging  managerial  responsibilities  /  person  closely
     associated
 a)  Name                                                                                             Kenneth Seymour
 2   Reason for notification
 a)  Position / status                                                                                Chief Operating Officer
 b)  Initial notification                                                                             Initial notification

     /Amendment
 3   Details of the issuer,  emission allowance market participant, auction platform,
     auctioneer or auction monitor
 a)  Name                                                                                             Block Energy plc
 b)  LEI                                                                                              213800E2J8QA1J6KN415
 4   Details of the transaction(s):
     section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
 a)  Description of the financial instrument, type of instrument                                      Ordinary shares in Block Energy plc

     Identification code                                                                              ISIN GB00BF3TBT48
 b)  Nature of the transactions                                                                       Issue of shares in lieu of services provided
 c)  Price(s) and volumes(s)

Price(s)  Volumes(s)
                                                                                                       1.004p   298,805

 
 d)  Aggregated information                                                                           n/a
 e)  Date of the transactions                                                                         5 April 2023
 f)  Place of the transactions                                                                        Outside a trading venue

 

d)

Aggregated information

n/a

e)

Date of the transactions

5 April 2023

f)

Place of the transactions

Outside a trading venue

 

 

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