REG - Block Energy PLC - Project III Farm-Out Process Commences

Block EnergyAnnouncement

12/02/2024 07:00

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RNS Number : 7272C  Block Energy PLC  12 February 2024

12 February 2024

Block Energy plc

("Block" or the "Company")

Project III Farm-Out Process Commences

Block Energy plc, the development and production company focused on Georgia,
is pleased to announce it has launched the farm-out process for Project III,
targeting the development of a gas resource of strategic significance to the
Georgian state through the appointment of LAB Energy Advisors Limited ("LAB
Energy"), a leading independent energy advisory company.

The appointment follows last week's announcement of an Independent Engineering
Report ("IER"), which ascribed over 1 TCF of 2C Contingent Gas Resource to the
Project's Patardzueli-Samgori field, and a project Net Present Value of more
than USD 500 million.

Project III Farm Out

Project III is a material opportunity for the appraisal and development of
significant gas resources located close to the Southern Caucasus Pipeline
("SCP") connected to international markets and local infrastructure and
markets within the greater Tbilisi area.

The initiation of the farm-out process follows two years of technical and
commercial work by Block to define the Project's gas resource, which the
Ministry of Economy and Sustainability of the Republic of Georgia has declared
of strategic significance for meeting the urgent demand for energy required by
Georgia's fast-growing economy.

Project III also offers potential for a commercial Carbon Capture and Storage
("CCS") opportunity within the Patardzueli-Samgori Middle Eocene reservoir,
which an independent report indicates as having a mid-case capacity of 151.5
million tonnes of carbon dioxide. The reservoir's rocks would allow for the
application of low-cost, high-impact CCS technologies already in commercial
use in Iceland. The project, which has potential to establish a major net-zero
hub in central Georgia, underlines Block's commitment to sustainability.

Appointment of LAB Energy

The Company believes the appointment of an independent advisor will ensure the
Project's potential is marketed effectively to a wide range of prospective
partners, offering the best prospect of securing an optimal deal for
shareholders.

LAB Energy is a UK-based energy sector advisory company with a proven record
in facilitating upstream transactions across the European onshore market,
encompassing traditional oil and gas companies, transitional energy and
clean-tech players.

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

"The appointment of LAB Energy marks the beginning of the anticipated farm-out
process of Project III, signalling our commitment to deliver a high-value
strategy with near-term impact. We're excited to get the process underway and
look forward to updating our shareholders 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/
(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 / Ali AlQahtani   Celicourt Communications         Tel: +44 (0)20 7770 6424

 (Financial PR)

 

Notes to editors

Block Energy plc is an AIM-listed 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 1TCF of 2C contingent gas resources in the Patardzueli and Samgori
fields. (Source: IER, OPC 2024).

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.

·    MD: measured depth.

·    MMbbls: million barrels.

·    MMboe: million barrels of oil equivalent.

·    MMcf: million cubic feet.

·    TVD: True Vertical Depth.

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