REG - Block Energy PLC - Phase 1 CCS Results

Block EnergyAnnouncement

Yesterday 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251222:nRSV3774Ma&default-theme=true

RNS Number : 3774M  Block Energy PLC  22 December 2025

22 December 2025

Block Energy plc

("Block" or the "Company")

Phase 1 CCS Results

Block Energy plc (AIM: BLOE), the development and production company focused
on Georgia, is pleased to provide the initial results of the Phase 1 CCS
pilot.

 

Highlights:

 

·    Post-injection sampling and third-party laboratory analysis confirm
rapid mineralisation of the injected CO(2), with 70% - 100% mineralisation
being achieved since the pilot injection in August 2025.

 

·    The injected CO(2) has precipitated into solid carbonate minerals
in-situ within the reservoir.

 

·    The successful pilot de-risks the project and provides a strong
technical foundation for the next steps which include a field-wide scale-up
and defined commercialisation scheme.

 

Technical Summary:

 

In August 2025, as part of the Phase 1 pilot, 13.6 tons of CO(2) along with a
tracer compound was injected into the Middle Eocene reservoir in the PAT-49
well on the Patardzeuli field. Four monitoring wells, which had previously
been proven to be connected to PAT-49, were systemically sampled during the
monitoring phase, with formation water samples as well as surface CO(2) gas
detection taken by the Company during this phase.

 

The monitoring programme was developed in line with international carbon and
mineralisation standards. It was designed to incorporate direct sampling
evidence, tracer behaviour, repeat laboratory measurement, as well as
geochemical analysis.

 

No gaseous CO(2) was detected at surface, and the formation water samples were
independently analysed by a credentialed laboratory in Azerbaijan.

 

OPC, Block's technical advisor on the project, concluded that analysed samples
have demonstrated between 70 - 100% mineralisation within three months
post-injection, having undertaken geochemical interpretation on the results of
the monitoring programme.

 

Tracer concentrations associated with the injection increased in the
monitoring wells as expected, whilst dissolved CO(2) levels remained low;
providing clear evidence that CO(2) was precipitating into solid minerals in
the reservoir, with the effect of permanent storage of CO(2).

 

The results provide a strong technical basis for field-wide scale-up and
commercialisation pathways.

 

Next Steps:

 

Early-stage assessments of the Middle Eocene reservoir in the Patardzueli
field as a carbon storage project estimate that in the mid-case the field has
the potential to store 151.5 million tonnes of CO(2) through mineralisation
(OPC, 2024).

 

Results to date on the project have been above expectation, and the successful
pilot demonstrating rapid mineralisation materially de-risks the underlying
storage mechanism.

 

The next stage in the project is to refine the current storage estimates as
well as the annual CO(2) injection potential of the project and to work to
receive independent certification of the permanent storage.

 

For Phase 2, the Company is planning:

 

·    A review of the Phase 1 pilot results with its JV partner, Rustavi
Azot (a subsidiary of Indorama Corporation), to define the scope and
sequencing of the Phase 2 activity, subject to further technical, regulatory
and internal approvals

 

·    Progressing the independent validation and certification of carbon
storage to support both regulatory and commercial engagement.

 

·    Evaluate a range of potential commercialisation pathways, including
third-party storage solutions and possible integration opportunities with
Rustavi Azot, subject to further assessment

 

Updates on the progress of Phase 2 will be made as appropriate.

 

Paul Haywood, Chief Executive Officer of Block Energy, commented:

 

"These results are a major technical milestone for Block. Post-injection
sampling and third-party laboratory analysis has confirmed rapid and permanent
mineralisation of CO(2) in the reservoir, materially de-risking the project
and enabling us to take the next steps toward development and
commercialisation.

 

I'd like to thank Block's operating team, who successfully executed the pilot
injection and maintained a professional monitoring scheme, as well as OPC's
continued support on the subsurface and geochemical side. I'd also like to
thank Rustavi Azot, our JV partner on this project, who provided the CO(2) and
made a contribution to the Phase 1 pilot activities.

 

Mineralisation provides a fundamentally different and higher-integrity form of
storage as compared with conventional CCS and delivers permanent storage
without the reliance on long-term trapping mechanisms. Our field is very well
located for commercialisation, being within Georgia's industrial heartland and
having a significant brownfield surface and subsurface infrastructure, which
can be repurposed. We're therefore very excited to begin work on Phase 2 and
what could become a material asset for the Company."

 

Prakash Kejriwal, Group Director of Indorama Corporation commented:

 

"The interim results from the pilot conducted by Block's team are very
encouraging and provide a strong foundation for Phase 2 activities. We look
forward to continuing our collaboration with Block Energy. This project has
the potential to deliver a permanent carbon sink and support meaningful
carbon-emission reductions, marking an important milestone for hard-to-abate
industries.

 

"Mr. Christopher Brown BSc, MSc, DIC (Block's Technical Director) has reviewed
the reserve, resource and production information contained in this
announcement. Mr. Brown is a geoscientist with over 45 years of experience in
the Oil and Gas E&P sector."

 

**ENDS**

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 7770 6424

 Philip Dennis

 Kathleen Beams

 (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 km(2), 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

MT means millions of tonnes of carbon dioxide

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLGZMZZLMRGKZM



            Copyright 2019 Regulatory News Service, all rights reserved