Member Info for Hepseal

While we are on the subject of Significant Shareholder what about Georgian Oil and Gas Ltd who bailed out early on when the price was lot higher.

What did they know? Quite a lot I would imagine as they were also providing the Drilling Rig and PH was an ex employee.

In fact, thinking about it they have probably done quite well out of Block Energy.

While we are on the subject of Significant Shareholder what about Georgian Oil and Gas Ltd who bailed out early on when the price was lot higher.

What did they know? Quite a lot I would imagine as they were also providing the Drilling Rig and PH was an ex employee.

In fact, thinking about it they have probably done quite well out of Block Energy.

Prax14 - CORRECTION

Turnover will NOT be above £10m this financial year - It might have been if they had done a bit more drilling!!

Cymro1864 - thank you very much for taking the time to post, will have a more detailed read this evening.

We already know from the half year statement that the "revenue" for YE June,23 will exceed that of YE June, 22 primarily due to the IGS contract, so they will presumably talk that up.

The interesting bit will be reading between the lines together with any forward statement regarding the current half year.

Hi Rlightor - "are we absolutely sure the drill has stopped turning?"

Well, as earlier post, it is possible they are doing some remedial works somewhere but there have been no announcements regarding spudding of a new well.

Anyway, I think I have exhausted the subject now, I will shut up and wait for news.

GLA

Hi Staypositive

"Hep has covered some likely possibilities why the drilling seems to have stopped. I'm hoping they want to retain the cash they have from the recent sales for something positive. Questions are what and why......."

IMO if they don't keep drilling they won't have any cash, see below:

Cash Balance 31st December was $450,000

Loan of $2m during H2 for the purpose of drilling additional Project 1 wells starting with well WR34Z,

Cash balance 30th June was $882,000

So according to my calculations Block had already spent $1,568,000 of the loan before they even started drilling WR34Z

As PH said, they have got to keep he drill bit turning to keep the revenue coming in, I agree with him, but it is not happening and when you look at the above figures I can't help thinking cash flow is the reason. Please DYOR.

And this is what PH said in the RNS dated 26 July:

"We're looking forward to the results from our next Project I development well, WR-34Z, which

aims to build on the back-to-back drilling success that has already materially improved the

Company's cash flow this year. More broadly, we have set out an aggressive drilling plan for the

remainder of this year and next, which, on success, will allow us to further increase our rate of

drilling across Project I, whilst also prioritising the appraisal of the high-impact gas and oil targets

across Project III and II respectively."

Spud, with respect, I think talk about a deal is a bit premature, below is an extract from the Q3 report RNS on the 12th October:

"Post period, the Company completed the evaluation of bids for a Competent Persons Report on

its Lower Eocene and Upper Cretaceous gas reservoirs (Project III) and has now awarded the

contract to RISC Advisory. The CPR will be shared with potential Project III farm-in partners, in due

course."

Chesh - Simple answer, I don't know, however below is a few possibilities that I listed before:

Possible shortage of funds but would have thought recent oil sales should have covered that unless funds needed for unexpected remedial works elsewhere.

Labour force working on unexpected remedial works elsewhere.

Drilling Rig not available or needing repair.

Reappraisal of which well to drill next based upon up to date results and performance, but they were still saying KRT-45 very recently.

All the best.

Yes, I get all the Project 111 stuff, I always have done, but none of it explains the radio silence on Project 1.

I am a bit of a novice here but they look to me to be an ideal partner.

Corrected text = m added:

They previously raised £5m + £12m + £5m = £22m = approx $28m + a further $2m = $30m total

The $30m could refer to the money already raised.

They previously raised £5m + £12m + £5m = £22m = approx $28 + a further $2m = $30m total

Piscator, if the negotiations regarding a farm in agreement are as advanced as you seem to think I would be delighted, as would everybody else here, but you are speculating based on a media item where PH speaks in Georgian (joke) and they show a 2 year old video of a side track that no longer exists.

Even if there was an RNS announcement next week regarding a Farm in. which I doubt, it would probably be a least a years before there was any revenue generated.

So in the meantime I will continue to "WHINGE"about the lack of progress on Project 1 and hope they generate enough money in the coming year to pay there 120 strong workforce and to pay back the $2m loan.

So what you are saying Piscator is that they raised $2m in February /May this year in order to advance the Project ! drilling campaign as it was essential to "keep the drill bit turning" but they have now put Project 1 on the back burner!!

I don't believe they have changed the strategy, they just have not carried it out.

The Q3 update which you refer to below also states:

"Focus now shifts to the spud of our fourth well under this programme, KRT-45Z whilst we continue to advance our high impact strategy across Project III."

Only problem is they have not yet started on KRT-45Z -

WRBO1 came on production in March, 2023 so Block have only drilled one additional well in the last 8 months.

Piscator 1 - I would agree that the silence regarding Project 111 is to be expected as they are in the process of preparing a CPR to put before potential farm out partners in due course and this will obviously take time.

What is worrying is the silence regarding Project 1 considering what PH said in his TMS interview on the 8th June, 2023.

“ Accelerating activity with a drill bit is our primary focus. We've got a production target that we want to hit by year end and we got lots of plans that we'd like to achieve and moving into 2024. And to do that we need production, we need revenue. And we've got to keep things moving.”

Could not be clearer, "we need production, we need revenue" and yet since that interview nearly six months ago Block have only drilled one extra well with modest results with no news yet of starting a further well.

Plan D......beads on boots and balls.

Just to clarify, the interview is current, but the attached video with the injection of nitrogen is from WR-B1 in October, 2021.

"you will see that there has been a hive of activity at the well sites including stimulation of wells through the injection of nitrogen."

Thanks for posting Piscator1 but that video is from the WR-B1 well site filmed in October, 2021. - It is on the web site. Since that time that particular side track was abandoned and the new WR-B1 side track came into production this year.