REG - Block Energy PLC - Operations Update

Block EnergyAnnouncement

17/03/2025 07:15

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RNS Number : 8331A  Block Energy PLC  17 March 2025

17 March 2025

Block Energy plc

("Block" or the "Company")

Acquisition of Samgori South Dome

Summary

·    The State Agency of Oil and Gas of Georgia confirmed Block's
operational rights to the Upper Eocene, Lower Eocene and Upper Cretaceous in
the Samgori South Dome ("SSD") field.

·    As a result, resources for Project III increase with the addition of
574 BCF 2U unrisked prospective resources to the existing 2.7 TCF 2C
contingent resources.

·    The consolidation of the field into XIB allows it to be advanced
alongside the Project III appraisal plan.

Background

Samgori South Dome ("SSD") was originally part of the XIB PSC but carved-out
in 2014 (prior to Block's participation in XIB) for potential use by the
Georgian government at Middle Eocene reservoir depth for an Underground Gas
Storage ("UGS") project.

The Middle Eocene is retained by the Georgian national oil company, Georgian
Oil and Gas Corporation ("GOGC").

Map 1: Top Lower Eocene Structure Map

Geological Context

At the Lower Eocene and deeper stratigraphy the SSD geological structure is a
three-way dip closure forming a culmination in communication with and at a
similar structural level to the Patardzueli-Samgori structure, and is on trend
with the Teleti field. The Lower Eocene and Upper Cretaceous reservoirs have
not been drilled and tested to date, but given the seismic interpretation,
depth calibration at the top Middle Eocene and location of the SSD culmination
adjacent to proven gas in Patardzueli-Samgori and Teleti it is considered to
be highly prospective.

The top Upper Cretaceous structure runs from Patardzueli-Samgori through SSD
to Teleti, a distance of approximately 40 km, becoming progressively shallower
by around 1,700 m at Teleti. This has the potential to be a continuous
gas-bearing structure as no structural closures have been mapped at mid and
deep case known gas levels.

Block's internal resource evaluation ascribes the following prospective
resources to SSD:

 Reservoir         Prospective Resources (Gas, BCF)
                   1U           2U           3U
 Lower Eocene      462          526          594
 Upper Cretaceous  39           48           57
 Total             501          574          651

 

Project III

SSD produced oil from the same volcanoclastic Middle Eocene formation as
Patardzueli-Samgori and Teleti during the Soviet period. No exploratory wells
targeting the Lower Eocene and Upper Cretaceous were drilled.

Acquiring the SSD field ensures that, on success of the Project III appraisal
campaign, the Company has additional running room to add resources to the
existing proven fields and that, if the Upper Cretaceous reservoir is shown to
extend from Patardzueli-Samgori through SSD to Teleti, the Company is able to
exploit this.

Commenting, Paul Haywood, Chief Executive Officer of Block Energy plc said:

"We greatly appreciate the continued support of the Georgian government as we
advance our Project III farm-out campaign. The acquisition of SSD marks a
significant milestone, further strengthening our significant resource base,
enhancing the growth potential for the Company. With this expanded opportunity
set, we are well-positioned to capitalise on future drilling success across
Project III. We look forward to sharing further updates in due course."

**ENDS**

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 of experience in
field development and reservoir management.

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

 (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

·    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.

·    MMbbls: million barrels.

·    MMboe: million barrels of oil equivalent.

·    MMcf: million cubic feet.

 

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