Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce that at 08:00 today its ordinary shares commenced trading on AIM under the ticker BLOE.L (‘Admission'). As part of the Admission process, the Company has raised £5 million before expenses, through a placing and subscription of 125 million new ordinary shares at an issue price of 4p each, implying a market capitalisation of circa £10.3 million on Admission.
Spark Advisory Partners is acting as Nominated Adviser. Baden Hill LLP, a trading name of Northland Capital Partners Limited, and Novum Securities are Joint Brokers to the Company. Gneiss Energy Limited acted as corporate adviser to the Company.
Paul Haywood, Director of Block Energy, said: "Block Energy is an asset backed, revenue generative oil and gas company with scalability and a development schedule providing regular news flow and re-rating potential. The response from the market to the opportunity was fantastic and we are delighted to have raised £5 million in an oversubscribed placing, which enables the Company to rapidly develop and monetise our portfolio in Georgia. The US$39.3 million NPV10 assigned to 2P net oil reserves of 1.5 million barrels provides asset backing for the Company which compares favourably to the listing valuation of £10.3 million. Furthermore, there is substantial potential from 608 BCF 2C gross unrisked contingent gas resources at West Rustavi, where the prospectivity is further underlined by an analogous play being tested by US oil services major Schlumberger in 2018 and 2019 on its adjacent 100% owned and operated licence.
“We are now fully funded to recomplete/reactivate up to ~10 wells and side track wells, with the objective of increasing existing oil production from 15 bopd to over 900 bopd within 18-24 months. Additionally, we will be seeking to de-risk 72.9 million barrels of oil and 626 BCF of gas that have been classified as 2C gross contingent resources in a CPR. Our ability to execute in-country is backed by both our team as well as our major shareholder, Georgia Oil and Gas Limited (GOG) who is both an established operator, party to multiple PSCs and a drilling service provider in Georgia.
“We are in the right address in the right country at the right time. The right address, because our existing licences, including West Rustavi where we have a 5% interest and the right to earn up to a 75% WI, lie in the heart of the prolific Kura basin and contiguous to the largest historical producing field (~70,000 bopd) in Georgia. The right country, because Georgia is a low-cost, business-friendly nation with underdeveloped oil and gas reserves. The right time, because Schlumberger's entry is game-changing for Block Energy in terms of targeting the same play types and providing third party validation of Georgia's oil and gas potential. I look forward to providing further updates as we focus on realising this potential and at the same time monetising the multiple company-making opportunities we have identified across our asset base.”