Member Info for Hepseal

Sunday Roast - Can I correct you on a couple of points.

Oil Sales:

The last six monthly production figures were 483boepd (i.e. including the gas)

Oil sales for the same six months were 49.9Mbbls which averages out at a lesser figure of 274 bopd

This is because firstly you have to subtract out the gas element which sells at much cheaper rate.

Secondly you have to subtract out the oil that goes to the State of Georgia which is around 25% (I have had this confirmed by the previous CFO)

Project 4:

The recent farmout was for Licence X1Q (part of Project 4) - Block currently have a 10% interest.

The XIQ licence is currently held by Georgia Oil and Gas Limited ("GOGL"); (68%, Operator), Georgia Oil and Gas Corporation ("GOGC"); 22% and Block Energy (10% with an option to increase to 22%).

Only 1 placing in recent times:

May be true but there was also a $2m loan taken out 3 years ago which is coming up for repayment and/or renewal on the 2nd February - Watch this space for incoming news.

Just mentioning the above so that you don't get any nasty shocks.

"We could do with a little something from the company, a tweet would be a great help!"

There will almost certainly be an RNS this week (Monday at the latest) with regard to the loan so I would hope that RNS will also include a Trading Statement / Forward Plan of some sort.

Morning Chesh - Radishes!!

From Proactive after recent ET interview:

Coinsilium’s appearance at Consensus Hong Kong 2026 alongside Yellow Network — a key opportunity to raise global visibility as both groups prepared for their next phase of growth.

Yep - 42.9% ownership - I don't think poor old Stock Maiden has quite grasped that yet!!

Hi Bobbby

With regard to your question:

I was assuming Block would receive a "Revenue" of $50 per tonne.

If costs were $30 per tonne that would leave a "Profit" to Block of $20 per tonne,

I figured Indorama would also need a return so they also would also be $20 per tonne better off.

Obviously the figures are very simplistic and we are not aware of all the facts, i.e.

1) Will Indorama be contributing to capital expenditure for construction of injection plant, pipelines etc on the first project (I would guess Yes)

2) Will Indorama be involved with financing future projects (possibly?).

Answers to the above questions will obviously be a factor in determining how much Revenue/Profit Block receive.

All the best,

Heps

From yesterday's TMS article:

""The facility would initially store emissions of around 300 kilotonnes per annum generated by joint venture partner Indorama. It promises to be a particularly valuable resource for companies operating under the EU Emissions Trading System, which imposes a carbon price of around $70 per tonne. BLOE indicates the cost of storing carbon at the facility could be much lower, approximately $30 per tonne.""

So I will make a wild assumption here:

$70 - $30 = $40 benefit per tonne

$40 benefit per tonne split 2 ways with joint partner Indorama = $20 per tonne

Possible profit to Block from Phase 1 = 300,000 x $20 = $6M pa

Just for discussion folks.

By the way - Excellent article by TMS.

BB - I suggest you DYOR

""The XIQ licence is currently held by Georgia Oil and Gas Limited ("GOGL"); (68%, Operator), Georgia Oil and Gas Corporation ("GOGC"); 22% and Block Energy (10% with an option to increase to 22%).""

Good discussion - just to get back to where we started this is what the company said on 22nd December:

""For Phase 2, the Company is planning.

· A review of the Phase 1 pilot results with its JV partner, Rustavi Azot (a subsidiary of Indorama Corporation), to define the scope and sequencing of the Phase 2 activity, subject to further technical, regulatory and internal approvals

· Progressing the independent validation and certification of carbon storage to support both regulatory and commercial engagement.

· Evaluate a range of potential commercialisation pathways, including third-party storage solutions and possible integration opportunities with Rustavi Azot, subject to further assessment

Updates on the progress of Phase 2 will be made as appropriate.""

As Shed says, I don't think Block or Indorama will be dragging their heals on this, they both need one another.

Shed and Bobbby - You are both more optimistic than me with regard to timescales but nothing you have said has changed my opinion. That said I hope you are correct and I am wrong!! However, in the first instance I am looking forward to the loan agreement RNS which just might have some extra information to digest.

This is where you and me differ Bobbby, I agree with you that the two big hitters are going to be Project 3 and CCS but I don't agree with your timescales:

Project 3 - Yes, an agreement could be anytime but I would allow say 3 months for negotiation and signing and then a further 3 months for it to be signed off by the Georgian Authorities. (based upon recent Project 4 farm out timescale)

CCS - Once again, everything is going in the right direction but there still appear's to be still a lot of work to be done before they can announce a meaningful commercial deal with presumably Indorama.

Anyway further to my earlier post I note that Block did indeed issue a Trading Update on the 31st July 2024 in conjunction with the last extension to the loan - If they do the same this then it could be interesting reading.

This is what the company said on 22nd December re CCS:

For Phase 2, the Company is planning.

· A review of the Phase 1 pilot results with its JV partner, Rustavi Azot (a subsidiary of Indorama Corporation), to define the scope and sequencing of the Phase 2 activity, subject to further technical, regulatory and internal approvals

· Progressing the independent validation and certification of carbon storage to support both regulatory and commercial engagement.

· Evaluate a range of potential commercialisation pathways, including third-party storage solutions and possible integration opportunities with Rustavi Azot, subject to further assessment

Updates on the progress of Phase 2 will be made as appropriate.

A very good question Spud.

There will have to be an RNS in the next ten days or so to address the outstanding loan - just possibly that RNS may also give an update on the various projects but I am not holding my breath.

Project 3 offer:

1) Subject to the negotiation of and entry into customary detailed binding agreements.

2) Subject to Georgian Government approval of the transaction.

Shedulike:

"Block currently holds a 10% interest in the XIQ licence, with an option to increase this to 22%."

So according to me, if the new guys get 75% and Block stick at 10% then Block will retain 10% of 25%. i.e. 2.5%

Confused!!!

Just ticked up again!

From RNS 01 December:

""Coinsilium also confirms that both the Company and Yellow Network will participate in Consensus Hong Kong 2026, taking place from 10–12 February 2026 at the Hong Kong Convention & Exhibition Centre. Senior representatives from both organisations, including Coinsilium CEO Eddy Travia, Coinsilium Strategic Advisor James Van Straten and Yellow Network co-founder Alexis Sirkia, are scheduled to speak at the event.""

Re completion of the FARM OUT XIQ (part of Project 4:

From RNS: ""The Company currently expects this to take place during Q4 2025 - Q1 2026.""

That's good because that is what they are trying to do, put it INTO the ground!!