REG - Block Energy PLC - Fundraise and Operations Update

Block EnergyAnnouncement

06/11/2025 07:00

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RNS Number : 4678G  Block Energy PLC  06 November 2025

6 November 2025

Block Energy plc

("Block" or the "Company")

£1.5 Million Institutional Fundraise and Operations Update

Block Energy plc, the development and production company focused on Georgia,
is pleased to announce the successful completion of a £1.5 million equity
fundraising at an issue price of 0.7 pence per share ("Fundraising Price"),
and an update on operational and asset progress across its portfolio.

Highlights:

·    The fundraising comprises an institutional placing ("Placing") of,
and direct subscriptions for, a total of 214,282,000 new ordinary shares of
0.25 pence each ("Ordinary Shares") at the Fundraising Price (the Placing and
Subscription, together the "Fundraising").

·    Fundraising completed with strong demand from new and existing
investors, providing additional financial flexibility to progress growth
initiatives.

·    Proceeds strengthen the balance sheet at a time of active commercial
negotiations on asset farm-outs and continued progress of the Company's new
venture strategy.

·    Project IV (XIQ) farm-out remains on schedule, with positive feedback
received from governmental authorities.

·    Project III farm-out negotiations advancing with multiple third
parties.

·    Project II subsurface and redevelopment planning progressing in line
with schedule.

·    Project I well KRT-39ST drilled safely, on time and within budget,
marking the first successful application of 'slim-hole' drilling technology in
Georgia.

Summary of the Fundraising:

The Fundraising, conducted within existing share allotment authorities, is
Block's first equity fundraise since 2020 and raised £1,499,974 from certain
investors (including institutional investors), before expenses.

107,141,000 warrants will be issued to the investors ("Warrants"), on the
basis of 1 warrant for every 2 new Ordinary Shares subscribed. The Warrants
will have an exercise price of 1.0p per share and an exercise period valid for
12 months from Admission.

The issue of the Warrants is subject to shareholder approval for the headroom
required, with a general meeting of shareholders of the Company to be held
within 90 days of today's date. The funds will be applied to:

·    Support the completion of the Project IV ("XIQ") farm-out, which is
expected to conclude in Q4 2025 or Q1 2026.

·    Advance the Project III farm-out process, with commercial discussions
continuing to progress.

·    Continue development of the Company's CCS project, including
implementation of the third-party verification programme.

·    Pursue new venture opportunities in both Georgia and internationally.

·    Establish greater financial headroom in the event of further
commodity price fluctuations.

Operations Update:

Project IV (XIQ):

Good progress is being made on completion of the Project IV farm-out, with the
existing parties - Block, Georgian Oil and Gas Limited ("GOGL") and Georgia
Oil and Gas Corporation ("GOGC") - working to complete the transaction. Upon
completion, the Parties will see a leading international E&P company
commit to a significant exploration work programme focused on the Martkopi
Terrace prospect which holds 301.7 MMboe mean unrisked recoverable prospective
resources (DeGoyler MacNaughton 2023).

Project III:

Negotiations are advancing with a major international energy and petrochemical
company on a potential farm-in to Project III.

In parallel, Block has signed a non-exclusive Memorandum of Understanding with
a leading international trading company establishing a framework for potential
future gas offtake and marketing cooperation. Efforts on the gas marketing
side are in support of ongoing discussions around the farm-out of Project III,
which would see initial production of 20 MMCF/d (c. 3,300 boepd) following
completion of the appraisal programme, with planned ramp up (in the 2C case)
to 200 MMCF/d (c. 33,000 boepd).

Project III is a strategic gas appraisal project, located approximately 15km
from the Southern Caucuses Gas Pipeline ("SCP"), a major component of the
Southern Gas Corridor, which sees natural gas delivered primarily from
Azerbaijan to Turkey and EU markets.

The 2024 Independent Engineering Report ascribed 1,074 BCF 2C contingent
resources and an NPV10 of USD 501 MM (OPC, 2024) to the Patardzueli-Samgori
field. Project III also contains an additional two fields (Rustavi and
Teleti), both with proven gas, and a low-risk exploration prospect, the South
Dome field.

The Company continues to receive strong support from the Georgian government
for its planned farm-out of Project III, reflecting the project's strategic
alignment with Georgia's objective to expand domestic gas production and
strengthen its role within the regional energy corridor

Project II:

The Company continues to advance a detailed field redevelopment plan for
Project II, focused on unlocking substantial contingent resources through the
application of its proven slim hole drilling and completion techniques,
infrastructure optimisation, and phased production reactivation.

The redevelopment effort and supporting plan, will form the basis of a
high-impact farm-out opportunity for industry partners seeking immediate
access to significant resources and near-term production with infrastructure.
Given the onshore nature of the project and proximity to infrastructure
(including the intercontinental Baku-Tbilisi-Ceyhan oil export pipeline) the
redevelopment has significant economic value.

Patardzueli-Samgori Middle Eocene (Project II) contains 2C contingent
resources of 235.0 MMbbl (Block Energy, 2022).

Project I

The latest project I well, KRT-39ST, was drilled safely, on time, and within
budget, marking the first successful application of the Company's 'slim-hole'
technology in Georgia.

The operation, executed using the Company's own rig and crew, achieved its
primary technical objectives and validated the efficiency of the drilling
methodology. Completion operations are currently underway after which the well
will be passed to the production team as part of Company's baseline Project I
production portfolio.

Application for Admission and Total Voting Rights

The 214,282,000 new Ordinary Shares will rank pari passu in all respects with
the existing ordinary shares of 0.25 pence per share in the capital of the
Company.  Application has been made to the London Stock Exchange for the new
Ordinary Shares to be admitted to trading on AIM ("Admission").  It is
expected that Admission will become effective at 8:00 a.m. on or around 13
November 2025.

Following Admission, the Company's enlarged issued ordinary share capital will
be 986,935,343 Ordinary Shares. This figure may be used by holders of Ordinary
Shares 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 Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.

Commenting, Paul Haywood, Chief Executive Officer of Block Energy Said:

"This fundraising represents the Company's first equity raise since 2020 and
was completed with strong institutional support. The proceeds provide
additional flexibility as we progress multiple commercial workstreams,
including the farm-outs of Projects III and IV, advancement of our CCS pilot,
and the build-out of a new ventures portfolio designed to deliver material
growth opportunities.

 

Operationally, the team continues to deliver. The KRT-39ST well was drilled
safely, on time and within budget, marking a technical first for Georgia with
the successful deployment of our slim-hole drilling technology. Early results
from our CO₂ mineralisation programme are encouraging and demonstrate our
ability to innovate and adapt as the energy transition accelerates.

 

With a strengthened balance sheet, a high-impact pipeline of projects, and
growing industry engagement, Block is positioned to build further value across
both its core portfolio and emerging new ventures".

 

**ENDS**

Dr. Stephen James BSc, MBA, PhD (Block's Senior Technical Advisor) 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.

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

 James Keeshan

 (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

 Ali AlQahtani

 (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.
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

Georgia Oil and Gas Limited ("GOGL") is a privately-held exploration company
focused on Georgia

Georgia Oil and Gas Corporation ("GOGC") is the State oil company of Georgia

 

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