31 August 2017
Block Energy plc
("Block Energy" or the "Company")
Issue of Equity, Satskhenisi Update and Total Voting Rights
Issue of Equity
Block Energy, the exploration and production company focused on the Republic of Georgia, is pleased to announce that it has raised total gross proceeds of £250,000 via the placing of 29,411,765 million New Ordinary Shares at an issue price of 0.85 pence per New Ordinary Share (‘the Placing’). The proceeds of the Placing will be used to execute the planned AIM listing and all associated actions pertaining to enhancing the Company’s asset base prior to the AIM admission occurring. Additionally, the Placing will enable Block Energy to meet its short term working capital requirements, which will be bolstered by the Company’s first oil sale, expected to take place in September 2017.
Satskhenisi Production Sharing Agreement Update
Further to the announcement of 1 August 2017, the Company is pleased to confirm that the vendor, Iskander Energy Corp, has met its commercial Conditions Precedents (“CPs”), and accordingly the Company has issued 70,000,000 ordinary shares to Iskander Energy Corp, representing 13.26% of the enlarged issued share capital. Block Energy owns a 90% working interest in the Satskhenisi Production Sharing Agreement and has now acquired all inventory held in Georgia, previously owned by Iskander Energy Corp. which will offer material cost savings and streamline logistical requirements for the Company when executing its planned development programme in Norio and Satskhenesi.
Paul Haywood, Director of Block Energy, said, "Today’s Placing at the current market price is in our view a strong testament to the quality of the assets we have acquired in Georgia. In line with our strategy, our licences are proven fields which are either currently producing or have historically produced significant quantities of oil. The Norio field has produced 1.9 million barrels to date and currently produces around 20bopd; Satskhenisi has produced more than 310,000 barrels of oil from the lower Miocene and is currently producing 6bopd; while 500,000 barrels of oil has been produced from the Middle Eocene and significant gas tests carried out from existing wells within the West Rustavi Block XIf Permit which shares the same geology and play types as the adjacent permit owned by Schlumberger Block XIb,where 200 million barrels of oil have been recovered.
“Importantly, all our assets have significant development potential in terms of both production and reserve growth. The team has already identified multiple low risk / low cost opportunities to rapidly scale up production and maximise the recovery of reserves via the application of modern techniques and advanced technologies. With this in mind, we are focused on commencing a multi-well workover and recompletion programme in the near term targeting an increase in production to approximately 1,200bopd from approximately 35bopd within a 12-month period, as well as testing what we believe to be significant gas potential within our license. We also have a defined path in place to transform Block Energy into the largest independent oil and gas company in the Republic of Georgia and I look forward to providing further updates on the key stages of our progress.”
Total Voting Rights
In accordance with the Financial Conduct Authority's Disclosure and Transparency Rules, the Board of Block Energy confirms that the Company has 527,825,153 Ordinary Shares in issue, each share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury.
Accordingly, the Company has a total of 527,825,153 shares in issue which carry voting rights. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
The Directors of the Issuer accept responsibility for this announcement.
For further information contact:
Block Energy plc Executive Director
Paul Haywood |
Tel: 020 3053 3631
Paul @blockenergy.co.uk |
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Peterhouse Corporate Finance |
Tel +44 020 7469 0930 |
Guy Miller / Mark Anwyl |
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