Member Info for ADT1

Lots to come and look forward to over the next few months

Alexios on twitter

#BLOE

Gap filled

200day held

Bounce time

14-15p Target

A big RNS on Monday and we are back on track.

we need this Miton outfit to clear out asap

plenty in the pipeline also any time - might say in the interviews

Watch this recover

Block is in a position of strength – both from a balance sheet and negotiating stance
Farm in potential
Acquisition is a possibility to strength Block’s position in Georgia and it has government support and other majors interested in their work to date
https://total-market-solutions.com/2019/07/15/block-energy-four-well-program/
Some investors may choose to value a company at a specific point in time and disregard evidenced potential. Seasoned and more sophisticated investors often realise that valuations take into account more than just a sum of parts at a given point and assess progress made and derisking milestones since last official releases such as CPRs, pace of progress and potential. Especially where a clear, fully funded path exists to realise that potential. This can be evidenced by the recent oversubscribed institutional placing at 11p

https://docs.google.com/document/d/1TCAujrikmAJxNOp-AVvXRm80bY6s-PLjfukub9dG9y4/mobilebasic

Expected EBITDA of c$32m based on 3 wells producing by year end 2019
West Rustavi is located next to and on trend to 100% owned Schlumberger field
GOG have retained exposure to the licence by holding a stake in BLOE rather than selling % licence for cash – which shows confidence in Block and WR prospectivity
Norio and Satskhenisi are cash generating and producing 60bopd.
At 100bopd the company is operating at breakeven so Norio and Satsk. are a valuable contribution. This production will also be increased to 250bopd but W Rustavi is rightly the focus right now
Supportive government and fiscal terms; PSC allows full recovery of all opex and capex costs.
No further tax or royalties, levies or fees to pay under PSCs making for a highly favourable jurisdiction.
Georgia has a need for energy security independence and a demand for domestic gas production as it 100% imports gas.
BLOE is in negotiations with larger international oil companies to secure sales contracts but can also sell in Georgia.
Block has obtained an MoU for an offtake from Bago a large gas supplier in Georgia. They will fund all infrastructure required for gas production and buy all gas from Block. Currently – according to LSE presentation by PH, better terms for the sale of gas are being offered to Block by other buyers: https://www.lse.co.uk/media/london-south-east-oil-and-gas-investor-briefing-cluff-natural-resources-coro-energy-block-energy.html

Medium term catalysts
3D seismic is underway to further derisk the licence - expected by year end
CPR to be redone – expecting a significant upgrade to reserves because of the success of 16a flowing at 3x expectation . Current CPR numbers quoted in the presentation are dated 2017 and are pre 16a legacy numbers.
Additional points to highlight upside from current valuation
Cash balance of c£11m allowing a 4 well back to back program to increase oil production and retest legacy gas. Self funded thereafter. Well costs are low at $2-2.5m
Well 16a at WR can produce $1.1m per month (at current brent, 1100bopd, $29 opex/bbl); likely to be produced at a choked back 800-1000bopd
V fast well payback at 2 months for 16a
Well 16a also produces $1m per year free cashflow from unexpected gas production

Article by ASHA , ex charter accountant
@Asha231214

Reasons why Block Energy (BLOE) presents upside from current valuation

Worth noting that a recent Mirabud note values the company at 35p a share based on a highly conservative production rate of 1260bopd at West Rustavi (“WR”) in 2020 and does not take the gas resource into account.. That is a 24p premium to current mcap.

http://www.blockenergy.co.uk/wp-content/uploads/2019/07/block_energy_building_blocks_1_jul_19.pdf

Short term catalysts

Well 38 imminent and analogous to Well 16a expected to yield positive results
Legacy Gas discovery to be retested by Well 30 thereafter to then be completed as a horizontal sidetrack oil well. Aiming to convert the Gas resource to reserves.

Gas resource is 608bcf 2C contingent resource; Unrisked gas project value to BLOE of $1.6bn
3 wells: Well 16a, 38 and 30 to be producing by year end 19. Expected production 2.5k-3k bopd by year end generating EBITDA of c$32m pa for 2.5k bopd (at $65 brent; $29 opex/bbl) (per lse presentation link below)

As PH says they are going back into proven discoveries - not exploration
Decline rates have been taken into account when Paul discusses production forecasts as the numbers are based on the CPR. For more information please refer to the CPR or LSE presentation at 1hr 21min (below). Block plans to drill more wells in West Rustavi to ramp up production which should outstrip decline in the short term. There are 13 legacy wells drilled in W Rustavi; eight wells which were abandoned but potentially recoverable. There are 5 more which are shut in with well heads in tact which will facilitate wellbore re-entry and return to production, presumably increasing the value the well can provide shareholders.

captain cod the guru

small man syndrome

what stock market success you had mr mackerel

stick to catching a bit haddock fella

it is written by a total nobody . look him up , proper gimp , some fisherman called gary newman , totally unqualified , wouldnt waste time talking abut it

Full detailed RNS on Monday and all will be hunky dory.

Lets have it

on twitter

#UJO I'm hearing from a good source that Egdon's Mark Abbot is hounding North Lincs for information on yesterdays inclusion in their agenda for discussion on Wressle. Think we may well have news next week on a change of opinion in our favour!

LOADS of news to come over the next 12 months.

Will soon turn blue - if not today - tomorrow - next week - whenever - it is coming .....

That explains why it was held back

Now should see the real value build

Drill pad work complete on well 38 and rig available immediately , date for well spud wont be far off at all , then it will be all systems go for block and us all

Will be here very soon , any day

patience will be Rewarded