REG - Block Energy PLC - Operations Update

Block EnergyAnnouncement

24/11/2021 07:00

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RNS Number : 3411T  Block Energy PLC  24 November 2021

24 November 2021

Block Energy plc

("Block" or the "Company")

Gas Sales Commence From KRT-39 and JKT-01 Drilling Update

 

KRT-39 Gas Sales

 

Block Energy plc, the development and production company focused on Georgia,
is pleased to announce that gas sales from well KRT-39, located in Block
XI(B), have commenced.

Since before Block Energy acquired Block XI(B), the associated gas produced
(currently 140,000 scf per day) from KRT-39 has been flared. Its monetisation
will further reduce Block's environmental footprint in Georgia and is part of
the Company's wider strategy to minimise carbon emissions.

The sale of gas from KRT-39 commenced following the installation of two gas
separators and the construction of a 4.2km pipeline to the Company's early
production facility ("EPF"). Since acquiring the licence block in November
2020, it has been one of the Company's goals to monetise gas associated with
oil production from Block XI(B).

In the case of West Rustavi in Block XI(F), Block commenced gas sales in
February 2021, following the installation of the EPF and the construction of a
gas gathering flow line.

JKT-01 Drilling Update

Preparatory operations, utilising the ZJ-40 drilling rig, for the JKT-01
sidetrack, the next well in the fully funded drilling campaign, are making
good progress. Spudding the well is expected during early December 2021 and
further operational updates will be provided in due course.

Block Energy plc's Chief Executive Officer, Paul Haywood, said:

"Commencing gas sales from well KRT-39 provides a dual benefit to the Company
and the wider community around Block's assets. It supports our ambition to
create a sustainable energy company that minimises its environmental footprint
while supporting the energy demands of Georgia. It also delivers a further
stream of revenue that can be reinvested into supporting operations and
creating future value for shareholders. Furthermore, the infrastructure now in
place will enable the rapid monetisation of any associated gas produced from
the JKT-01 sidetrack. I am pleased with the operational progress at the
wellsite of JKT-01, and with the technical design of landing the horizontal
completion high in the Middle Eocene, where multiple fracture corridors are
expected to provide the best chance of high productivity."

**ENDS**

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER
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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   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, with 2P oil
and gas reserves of 64 MMboe, which is comprised 2P oil reserves of
36 MMbbls and 2P gas reserves of 28 MMboe (Source: CPR Bayphase
Limited: 1 July 2015) and historic 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 the highly prospective West Rustavi
onshore oil and gas field with multiple wells that have tested oil and gas
from a range of geological horizons. The field has so far produced 50 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

1.    bbls: barrels. A barrel is 35 imperial gallons.

2.    Bcf: billion cubic feet.

3.    boe: barrels of oil equivalent.

4.    bopd: barrels of oil per day.

5.    Mbbls: thousand barrels.

6.    MMbbls: million barrels.

7.    MMboe: million barrels of oil equivalent.

8.    scf: standard cubic feet.

 

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