REG - Block Energy PLC - Half-year Report
24/09/2025 07:00
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RNS Number : 5213A Block Energy PLC 24 September 2025
24 September 2025
Block Energy Plc
("Block" or the "Company")
Interim Results for the Six Months Ended 30 June 2025
Block Energy plc, the development and production company focused on Georgia,
is pleased to announce the interim results for Block Energy plc and its
subsidiaries (the "Group") for the six months ended 30 June 2025.
Highlights:
· Operational man-hours worked of 136,065 (1H 2024: 144,072 man-hours)
with zero lost time incidents (1H 2024: One).
· Net cashflow remained operationally positive throughout the period.
· The Group recorded a loss for the period of $639,000 (1H 2024: profit
of $2,000) and EBITDA of $81,000 (1H 2024: $645,000). The result reflects
the fall in oil prices in the period together with reduced oil inventory
levels at period end of $498,000 (1H 2024: $23,000), which increased cost of
sales.
· Further reductions in G&A spending to $1,010,000 (1H 2024:
$1,372,000) demonstrating effective cost control despite ongoing work on
strategic projects.
· Production remained stable, with total production of 87.5 Mboe
comprising 66.4 Mbbls of oil and 21.1 Mboe of gas (1H 2024: 82.8 Mboe,
comprising 61.3 Mbbls of oil and 21.5 Mboe of gas).
o Average daily production of 483 boepd (1H 2024: 455 boepd).
· Oil sales of 49.9 Mbbls with revenue of $3.02 million, representing a
weighted average price of $60.5 per barrel (1H 2024: Oil sales of 46.6 Mbbls
with revenue of $3.3 million, representing a weighted average price of $71 per
barrel). Declines in realised prices were caused by a reduction in the Brent
benchmark price.
· Gas sales of 82.2 MMcf with revenue of $0.36 million, representing a
weighted average price of $4.4/Mcf (1H 2024: 93.5 MMcf with revenue of $0.38
million, representing a weighted average price of $4.1/Mcf).
· Oil in inventory net to the Company at the end of the period was 8.27
Mbbls (1H 2024: 12.1 Mbbls).
· Cash position of $845,000 as at 30 June 2025 (31 December 2024:
$1,136,000).
Good progress was made in advancing the strategic projects in the first half:
o Acquired the operational rights to Samgori South Dome at Lower Eocene and
Upper Cretaceous intervals for nil cost through its incorporation into XIB.
This acquisition added 574 BCF 2U unrisked mean prospective recoverable
resources to Project III.
o Acquired a 10% Participating Interest in the high-impact XIQ PSC located
to the north of our XIB licence, adding a net 59 MMboe 2U unrisked mean
prospective recoverable resources to Project IV.
o Progressed the CCS project with various studies, lab and operational
milestones met.
o Continued to see good engagement on the Project III farm-out.
Post period events:
The Company continued with its strategy of asset development post-period:
· Successfully injected CO(2) into the reservoir as part of the ongoing
carbon mineralisation pilot.
· Concluded negotiations for the farm-in of a leading international
independent E&P company to the XIQ licence, with completion expected Q4
2025 - Q1 2026.
· Spud well KRT-39ST on Project I.
Commenting, Paul Haywood, Block Energy Chief Executive Officer said:
"This has been an important time for Block and since the period end and
momentum has accelerated: we have agreed terms with a leading international
E&P to farm into Project IV, successfully delivered the region's first
CO₂ injection under our CCS pilot, secured the addition of South Dome and
significantly boosting Project III's gas resources, as well as spudding
KRT-39ST. Together, these achievements represent a major endorsement of our
portfolio and Georgia's investment potential, positioning Block strongly for
its next phase of growth. Looking ahead, our priorities are clear: complete
the Project IV farm-out, progress Project III farmout, advance drilling across
our various projects and CCS activity, and evaluate new ventures aligned with
our capital-efficient strategy. Each of these represents a catalyst to deliver
material shareholder value."
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' 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/ 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 focused on unlocking Georgia's energy potential. The
Company holds interests in seven Production Sharing Contracts across central
Georgia, covering an area of 4,256 km(2), including the XIB licence which has
over 2.77TCF of 2C contingent gas resources, with an estimated Net Present
Value 10 ("NPV(10)") of USD 1.65 billion. (Source: IER, OPC 2024 &
Internal estimates).
Block is pursuing a four-project strategy to grow production, redevelop legacy
fields, explore new deposits, and unlock its multi-TCF gas potential -
positioning Georgia as a strategically located hub for European markets.
Alongside this, the Company is advancing a carbon capture and storage (CCS)
pilot test in Georgia, the first of its kind in the region, as part of its
commitment to low-carbon solutions.
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
· 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.
· 2C: the unrisked best estimate scenario of contingent resources.
· Contingent Resources: quantities of hydrocarbons which are estimated
to be potentially recoverable from known accumulations but are contingent on
technical or commercial factors not currently defined.
· Mbbls: thousand barrels.
· Mboe: thousand barrels of oil equivalent.
· MMbbls: million barrels.
· MMboe: millions of barrels of oil equivalent.
· MMcf: million cubic feet.
· Tcf: Trillion cubic feet.
Condensed Consolidated Interim Statement of Comprehensive Income
For the six months period ended 30 June 2025
Notes 6 months ended 6 months ended
30 June 2025 30 June 2024
Unaudited Unaudited
$'000 $'000
Continuing operations:
Revenue 3,380 3,690
Cost of sales:
Direct costs (1,777) (1,618)
Oil inventory adjustments 7 (498) (23)
Depreciation and depletion of oil and gas assets 6 (619) (590)
(2,894) (2,231)
Gross profit 486 1,459
Administrative expenses (1,010) (1,372)
Share based payments (14) (32)
Foreign exchange movements 16 41
(1,008) (1,445)
Operating (loss)/profit (522) 14
Other income 32 3
Finance income 30 15
Finance expense (179) (30)
(Loss)/profit for the period before taxation (639) 2
Taxation - -
(Loss)/profit for the period from continuing operations (attributable to the (639) 2
equity holders of the parent)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (113)
(38)
Total comprehensive loss for the period attributable to the equity holders of (677) (111)
the parent
(Loss)/profit per share (basic) 5 (0.08)c 0.0003c
Earnings before interest, tax, depreciation and amortisation (EBITDA) 81 645
4
Condensed Consolidated Statement of Financial Position
As at 30 June 2025
Notes 30 June 31 December 2024
2025
Unaudited Audited
$'000 $'000
Non-current assets
Intangible assets 418 268
Property, plant and equipment 6 22,578 22,976
22,996 23,244
Current assets
Inventory 7 3,858 4,299
Trade and other receivables 746 804
Cash and cash equivalents 845 1,136
Total current assets 5,449 6,239
Total assets 28,445 29,483
Equity and liabilities
Capital and reserves attributable to equity holders of the Company:
Share capital 9 3,856 3,733
Share premium 35,110 34,879
Other reserves 5,152 5,066
Foreign exchange reserve 595 633
Accumulated deficit (19,637) (18,998)
Total equity 25,076 25,313
Non-current liabilities
Borrowings 8 - 2,000
Current liabilities
Trade and other payables 423 1,237
Borrowings 8 2,000 -
Provisions 946 933
Total current liabilities 3,369 2,170
Total liabilities 3,369 4,170
Total equity and liabilities 28,445 29,483
Condensed Consolidated Interim Statement of Cash Flows
For the six months period ended 30 June 2025
Notes 6 months ended 6 months ended
30 June 2025 30 June 2024
Unaudited Unaudited
$'000 $'000
Operating activities
(Loss)/profit for the period before income tax (639) 2
Adjustments for:
Finance and other income (62) (18)
Finance expense 179 30
Depreciation and depletion 6 619 590
Share based payments expense 14 32
Creditors paid in shares - 30
Foreign exchange movement 47 258
Net cash flows from operating activities before changes in working capital 158 924
Decrease/(increase) in trade and other receivables 58 (127)
Decrease in trade and other payables (486) (363)
Decrease/(increase) in inventory 7 441 (48)
Net cashflows from operating activities 171 386
Investing activities
Expenditure in respect of intangible assets (150) (67)
Expenditure in respect of PP&E (209) (243)
Cash used in investing activities (359) (310)
Financing activities
Interest paid (165) (154)
Interest and other income 62 18
Net cash flows used in financing activities (103) (136)
Net decrease in cash and cash equivalents (291) (60)
Cash and cash equivalents at start of period 1,136 713
Effects of foreign exchange rate changes on cash and cash equivalents - 3
Cash and cash equivalents at end of period 845 656
Consolidated Statement of Changes in Equity
As at 30 June 2025
Share Share premium Accumulated deficit Other reserve Foreign exchange reserve Total equity
capital
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 30 June 2024 (unaudited)
3,733 34,879 (18,387) 5,104 655 25,984
Loss for the period - - (611) - - (611)
Exchange differences on translation of operations in foreign currency - - - (22) (22)
-
Total comprehensive loss for the period - - (611) - (22) (633)
Share based payments - - - (370) - (370)
Shares held by EBT - - - 332 - 332
Total transactions with owners - - - (38) - (38)
Balance at 31 December 2024 (audited) 3,733 34,879 (18,998) 5,066 633 25,313
Loss for the period - - (639) - - (639)
Exchange differences on translation of operations in foreign currency - - - - (38) (38)
Total comprehensive loss for the period - - (639) - (38) (677)
Shares issued 112 218 - - - 330
Share based payments accrued in 2024, issued 2025 - - - 96 - 96
Share based payments in 2025 - - - 14 - 14
Options exercised 11 13 - (24) - -
Total transactions with owners 123 231 - 86 - 440
Balance at 30 June 2025 (unaudited) 3,856 35,110 (19,637) 5,152 595 25,076
Notes to the Condensed Consolidated Interim Financial Statements
For the six months period ended 30 June 2025
1. General information
Block Energy Plc, (the "Company") is a company registered in England and Wales
(05356303), with its registered office at Eccleston Yards, 25 Eccleston Place,
London SW1W 9NF.
The Condensed Consolidated Interim Financial Statements of the Group, which
comprises Block Energy plc and its subsidiaries (the "Group"), for the
six-month period from 1 January 2025 to 30 June 2025, were approved by the
Directors on 22 September 2025. The Group's principal activity is oil and
gas exploration, development and production.
The Company's shares are traded on AIM and the trading symbol is BLOE.
These condensed interim financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2024 were approved by the
Board of Directors on 21 May 2025 and delivered to the Registrar of Companies.
The auditor's report on those financial statements was unqualified but did
include a reference to the material uncertainty surrounding going concern, to
which the auditors drew attention by way of emphasis of matter and did not
contain a statement under s498 (2) - (3) of Companies Act 2006.
The Company's auditors have not reviewed these condensed consolidated interim
financial statements.
2. Basis of preparation
Management has prepared these interim accounts in accordance with IFRS
accounting policies as applied at 31 December 2024 (without the disclosure
requirements of IFRS). They do not include all of the information required in
annual financial statements and should be read in conjunction with the
consolidated financial statements for the year ended 31 December 2024 and any
public announcements made by Block Energy Plc during the interim reporting
period. All amounts presented are in thousands of US dollars unless otherwise
stated.
The comparatives are the six-month period ended 30 June 2024, except for the
Condensed Consolidated Statement of Financial Position, where the comparatives
are as at 31 December 2024.
The accounting policies adopted in this half-yearly financial report are the
same as those adopted in the 2024 Annual Report and Financial Statements.
There were no new or amended accounting standards that required the Group to
change its accounting policies. The Directors also considered the impact of
standards issued but not yet applied by the Group and do not consider that
there will be a material impact of transition on the financial statements.
Going concern
The Directors have prepared cash flow forecasts for a period of 12 months from
the date of signing these financial statements. The Group's forecasts are
reviewed regularly to assess whether any actions to curtail expenditure or cut
costs are required.
The Group's operations presently generate sufficient revenues to cover
operating costs and capital expenditures, supporting the continued preparation
of the Group's accounts on a going concern basis.
The Directors are nevertheless conscious that oil prices have been volatile
during the past few years and could rise further but could also fall back in
the year ahead, and that future production levels depend on both depletion
rates from existing wells and the success of future drilling.
As part of their going concern assessment, the Directors have examined
multiple scenarios in which oil prices and/or future production levels fall
substantially and have concluded that it remains possible that future revenues
in at least some scenarios might not cover all operating costs and planned
capital expenditures, creating a material uncertainty that may cast doubt over
the Group's ability to continue as a going concern.
Whilst acknowledging this material uncertainty, the Directors remain confident
of making further cost savings if required and, therefore, the Directors
consider it appropriate to prepare the financial statements on a going concern
basis. The financial statements do not include the adjustments that would
result if the Group were unable to continue as a going concern.
3. Operating segments
The Group is engaged in the appraisal and development of oil and gas resources
in Georgia and is therefore considered to operate in a single geographical and
business segment.
4. Adjusted EBITDA
Adjusted EBITDA 6 months ended 6 months ended
30 June 2025 30 June 2024
$'000 $'000
Oil and gas extraction - Georgia 713 1,349
Corporate and other (632) (704)
Total adjusted EBITDA 81 645
Adjusted EBITDA reconciles to operating profit before income tax as follows:
Total adjusted EBITDA 6 months ended 6 months ended
30 June 2025 30 June 2024
$'000 $'000
Depreciation and depletion (619) (590)
Finance and other income 62 18
Finance costs and foreign exchange (163) (71)
(Loss)/profit before income tax from continuing operations
(639) 2
5. Earnings per share
As the Company has incurred a loss during in the current period, diluted
earnings per share have not been presented. The calculation for the loss per
Ordinary share is based on the consolidated loss attributable to the equity
shareholders of the Company is as follows:
6 months ended 6 months ended
30 June 2025 30 June 2024
(Loss)/profit attributable to equity Shareholders $ $ (639,000) $ 2,000
Weighted average number of Ordinary Shares 754,145,097 726,265,669
(Loss)/profit per Ordinary Share ($/cents) (0.08) cents 0.0003 cents
6. Property, plant and equipment
Unaudited Development & PPE/Computer/ Total
Production Assets Office equipment/ Vehicles
Cost $'000 $'000 $'000
At 1 January 2025 31,967 2,156 34,123
Additions 96 113 209
Disposals - (5) (5)
Foreign exchange movements - 20 20
At 30 June 2025 32,063 2,284 34,347
Accumulated depreciation
At 1 January 2025 9,910 1,239 11,149
Charge for the period 464 155 619
Disposals - 1 1
At 30 June 2025 10,374 1,395 11,769
Carrying amount
At 30 June 2025 21,689 889 22,578
At 31 December 2024 22,057 917 22,974
Unaudited Development & PPE/Computer/ Total
Production Assets Office equipment/ Vehicles
Cost $'000 $'000 $'000
At 1 January 2024 31,719 2,032 33,751
Additions* 287 80 367
Disposals - (30) (30)
Foreign exchange movements - (16) (16)
At 30 June 2024 32,006 2,066 34,072
Accumulated depreciation
At 1 January 2024 8,986 914 9,900
Charge 444 146 590
At 30 June 2024 9,430 1,060 10,490
Carrying amount
At 30 June 2024 22,576 1,006 23,582
At 31 December 2023 22,733 1,118 23,851
*This includes additions of $124,000 which relates to capitalised borrowing
costs
No impairment was recognised in the six months ended 30 June 2025 (2024: Nil).
7. Inventory
30 June 31 December 2024
2025
$'000
$'000
Spare parts and consumables 3,287 3,230
Crude oil 571 1,069
3,858 4,299
Inventories recognised in cost of sales
Movements in the value and volume of oil inventories during the period have
been recognised as an adjustment to cost of sales of $498,000 (2024: $23,000).
8. Borrowings
In 2023, the Company entered into a $2 million loan with a simple interest
rate of 16% per annum becoming payable every quarter. The loan was drawn down
in two tranches, with $1,060,000 being drawn down on 1 February 2023 and the
remainder of $940,000 being drawn down on 10 May 2023. The maturity date was
set at 18 months from the date of the drawdowns.
On 31 July 2024, the Company announced the extension of the loan for a further
18 months (to 2 February 2026) on substantially similar terms. The Company
also granted a further 91,185,133 warrants in consideration for this loan
extension. These warrants are exercisable at any time up until 30 July 2027
and have an exercise price of 0.85 pence per ordinary share.
$124,000 of this interest charge was capitalised during the first half of 2024
to reflect borrowing costs directly associated with assets at pre-commercial
production stage. All interest was charged to the profit and loss account in
the current half year as the assets began to commercially produce.
9. Share capital
The Ordinary Shares consist of full voting, dividend and capital distribution
rights and they do not confer any rights for redemption. The Deferred Shares
have no entitlement to receive dividends or to participate in any way in the
income or profits of the Company, nor is there entitlement to receive notice
of, speak at, or vote at any general meeting or annual general meeting.
On 7 February 2025, the Company issued 35,912,008 ordinary shares of 0.25p
each to settle part of the 2024 bonus awards.
On 22 May 2025, the Company issued 3,345,398 ordinary shares of 0.25p each
to a former employee, following the exercise on 20 May 2025 of nil cost
options that had been granted as part of the salary sacrifice scheme put in
place between April 2020 and April 2023.
On 30 June 2025, the Company's share capital consisted of 772,653,343 Ordinary
Shares (31 December 2024: 733,395,937) and 2,095,165,355 Deferred Shares (31
December 2024: 2,095,165,355).
Called up, allotted, issued and fully paid No. Ordinary Shares No. Deferred Shares Nominal Value $
As at 31 December 2024 733,395,937 2,095,165,355 3,733 ,199
Issue of equity on 7 February 2025 35,912,008 - 111,372
Issue of equity on 22 May 2025 3,345,398 - 11,247
As at 30 June 2025 772,653,343 2,095,165,355 3,855,818
10. Related party transaction
The Company's Chief Executive Officer, Paul Haywood has
provided $115,000 of the Loan referred to in note 7 above. $ 9,124 (2024: 1H
2024: $ 9,175) has been paid in interest to Mr Haywood in the first half of 30
June 2025.
Mr Haywood is treated as a related party of the Company pursuant to the AIM
Rules. Consequently, the participation of Mr Haywood in the provision of the
Loan Facility constituted a related party transaction for the purposes of AIM
Rule 13.
11. Other matters
A copy of this report is available from the Group's website,
www.blockenergy.co.uk (http://www.blockenergy.co.uk)
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