Member Info for Hepseal

Like Greybadger I would very much appreciate if someone could explain in simple language what all these weird trades are today - What does it mean??

In the absence of any hard facts my theory is as follows:

We were previously told the next Project 1 well to be drilled would be KRT-45, in fact KRT-39 was not even on the list.

This suggests to me that existing flow rates from KRT-39 may have subsequently been dwindling and it was found necessary to drill a new side track to prop up production rates / revenue.

Because Block still found it necessary to have a fund raise to keep going I have come to the conclusion that the flow rates from KRT-39ST are probably fairly modest.

PH - You could always issue an RNS to prove me wrong!

Scoobyrex - I also had reply's from William McAvock - unfortunately he resigned in 2022.

Which raises another interesting point, Block do not now have a CFO or a Chief Technical Officer.

Not if someone had listened to your post of 3rd July 2025:

""Now waiting for £50 and may be willing to slice some just in case it drops to £20!""

Greybadger - I was actually thinking like you were to start with then realized the numbers did not stack up - to be honest I don't know why they quote the nominal value figure but they do.

Also, if the proposed 107,141,000 proposed new warrants were exercised at 1p that alone would amount to £1,071,410

The only consolation would be that Block would have another £1M in the kitty - perhaps that is the plan!!

Greybadger - With respect , I think you re wrong.

The figure of £750k is based on the nominal value of 25p per share.

Example - At the AGM on the 25th June they obtained permission to issue 231,718,737 shares up to a nominal value of of £579,296 (based on nminal value of 25p per share).

They did issue nearly that number of shares but the value far exceeded the figure of £579,296 - £1,5M for the recent raise alone.

Number of shares in issue prior to AGM 25 June 2025 = 772,653,343

Number of shares in issue 14 Nov 2025 = 1,004,373,080

If resolutions passed on 12 Dec 2025 number of shares in issue could potentially increase to 1,305,583,266

That is a potential increase by more than 60% in less than a year.

Please DYOR

So have I got this correct??

The company is seeking permission to allot up to 301,211,186 new shares.

As part of the recent fund raise 107,141,000 of those shares could be used to satisfy the associated warrants.

That would leave an additional 194,070,186 shares that could be used to raise money for other purposes.

Could these additional shares be used as a means to pay back the loan due in February??

Just asking.

Prax14 - Only PH (& Block) know the answer to that question but as things stand at the moment I would guess the flow rates are fairly modest - pleased to be proved wrong.

Tony_month, in answer to your question:

The issue of the Warrants is subject to shareholder approval for the headroom required, with a general meeting of shareholders of the Company to be held within 90 days of today's date. (i.e. 6th Nov)

Summary of recent Fundraising:

The Fundraising, conducted within existing share allotment authorities, is Block's first equity fundraise since 2020 and raised £1,499,974 from certain investors (including institutional investors), before expenses.

107,141,000 warrants will be issued to the investors ("Warrants"), on the basis of 1 warrant for every 2 new Ordinary Shares subscribed. The Warrants will have an exercise price of 1.0p per share and an exercise period valid for 12 months from Admission.

The issue of the Warrants is subject to shareholder approval for the headroom required, with a general meeting of shareholders of the Company to be held within 90 days of today's date. The funds will be applied to:

· Support the completion of the Project IV ("XIQ") farm-out, which is expected to conclude in Q4 2025 or Q1 2026.

· Advance the Project III farm-out process, with commercial discussions continuing to progress.

· Continue development of the Company's CCS project, including implementation of the third-party verification programme.

· Pursue new venture opportunities in both Georgia and internationally.

· Establish greater financial headroom in the event of further commodity price fluctuations.

HL

Oct 20th - Tennyson Securities reaffirms BUY rating with a 4.7p target

Nov 6th - Block announce fund raise and 214,282,000 new shares!!

KRT-39ST - It certainly does matter.

Lets see if Block reveal production rates once the well has been completed and tied back into the adjacent facilities.

For some reason Tony seems to have a preoccupation with companies that have Jeremy Asher as a Director!!

Perhaps there may be an adjustment to the strategy?

One of the factors in the reduced costs must be the fact that they are using their own rig rather than hiring in from GOGL. Using their own rig must give them a lot more flexibility.

IMO, now that the slim hole technology has been proved successful in principal the rig should not be sat idle and as long as the numbers stack up it should be used throughout the year to increase revenue as much as possible, say 4 drill's a year. Could some of the money from the recent raise be used for the next drill to set the ball rolling?? - Only time will tell.

Good post - worth a read.

This is my take on the situation.

For the last 5 years the majority of development costs etc have been funded from revenue from Project 1.

Approx 2 years ago they drilled WR34 Z with modest results.

Since that time they have been reluctant to drill any new wells due to the risk / reward ratio.

KR39 has been a producing well for many years but output may have now dwindled hence the need for a new sidetrack KR39 ST

I do not think it is a co-incidence that they have announced the new raise and the completion of the well at the same time.

Had the well been a "gusher" a raise may not have been necessary.

Therefore, although the drilling was a success I suspect the results may be fairly modest.