SP Angel view today17 Mar 2025 12:18
From SP Angel today :
Block Energy (BLOE LN) 1.0p, Market Cap £7.7m: Additional running room in Georgia
Block announced the State Agency of Oil and Gas of Georgia confirmed its operational rights to the Upper Eocene, Lower Eocene and Upper Cretaceous in the Samgori South Dome (SSD) field.
The SSD field produced oil from the same volcanoclastic Middle Eocene formation as Patardzueli-Samgori and Teleti during the Soviet period, although no legacy wells penetrated the Lower Eocene and Upper Cretaceous.
The Middle Eocene is retained by the Georgian national oil company, Georgian Oil and Gas Corporation (GOGC), for potential use by the Georgian government as part of an underground gas storage project.
The Company internally estimates 574bcf of 2U unrisked prospective resources at the SSD field, which adds additional running room to the 2.7Tcf 2C contingent resources already delineated for Project III.
Block is up strongly in early trading (+17%) after absorbing the SSD field into the XIB licence, which further strengths the resource base and supports the Project III appraisal plan and farm-out campaign.
Block is cashflow positive and financially stable at current oil prices and production levels, as it pursues a diverse drilling and workover programme and recycles this cash flow back into exploiting the potential of the wider portfolio.
However, the farm-out process on Project III could be a material catalyst, with the multi-Tcf gas resource already declared a strategic asset by Georgia and located close to the country’s major industrial hub and near the South Caucasus Gas pipeline, which connects Turkey to European gas markets.
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