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I've been through the LAB energy and Blocks relationship but the family tree possibly widens into the following as the MD (M Llamas) of LAB has ties to Macquarie capital who have a company Wave Crest energy who in their own words 'will develop new infrastructure that expands market access to LNG in underserved markets enhancing energy security and providing access to lower emission fuels services. '
The Lab energy Geo science advisor Patrick Jakubowski prior to Lab was at CNOOC which happens to be the China national offshore oil corporation.
The other MD (P Bannister) as I've already posted has links to Schlumberger as he was a petroleum engineer.
What this potentially points to is a clever scripted way of getting the Chinese to assist in supplying gas to Europe and Turkey via Wave Crest whilst supporting and developing the belt road.
This is a pure conspiracy theory but never the less Block are certainly being supported by some very big hitting organisations.
Good to see our global traveller is back spouting nonsense, Anyway Avi8r what did you do in the cruise Avi8r? 'Meow' or shout 'on guard' for the whole trip?
Something tells me you're an on guard type of fellow.
Anyway I'll fluff his numbers and do what most companies do I'll take the mid estimate and then I'll take 25% of that value and half the $20 a ton that Cenovus are getting. thats still £15.44 a share.
The numbers, quality and scalability of this project alone are huge and whilst I know Block will never get those valuations but it show the potential and how wildly undervalued the company is at todays prices.
Anyway lets not get to excited hey?
Rock if thats a dig at my figures have you researched or looked into the CCS netback figures? Theyre all over the internet and you could if you chose work backwards like I did.
The numbers when run back to small percentages are mind-blowing especially when PH and his team have kept the shares in issue to a minimum.
Who'd have thought that the shares for salary was a good idea when it was so widely ripped to bits.
Genius on all fronts imo as I reckon the management knew the potential. Good for them is good for investors.
I agree Grower the numbers are eye watering, from what I have researched its $60 per ton of co2 and block reckon they can store 8.7 gigatonnes (1 gigaton = 1 billion tonnes) so Block on their estimates can store 8.7 billion tonnes which at $60 dollars a ton is $522 billion dollars. Also the geology seems to be able to mineralise the carbon in 12 months.
These numbers are eye watering, I don't know if the figures are netback but let's just take 1% of the $522bn as net profit and it works out at $7.20 dollars a share? For the cynics let's take just 0 .10 of that and you're at 72 cents a share in pence thats 57 pence per share.
Crazy crazy numbers.
PH and the team have managed this impeccably imo.
Lab energy who Block contracted in are worth researching, just look at their live mandates, they've ongoing projects in Georgia and China
https://labenergyadvisors.com/projects
Then take a look at the team, one of the MDs worked for Schlumberger and then theres this chap who has an interesting background and location.
https://labenergyadvisors.com/team-michael-deng
Agreed, Growers value is only for the CCS and PIII I believe and reflects a seriously discount price of the company valuation. The other projects haven't been valued however PH in the March presentation stated that the project had real potential value.
I agree Bobby a solid update from the company would be incredibly welcome.
The value potential here is huge, im just off listening to the March presentation again and have reviewed the presentation on the Block website.
This is a well thought out and developed project that hopefully is well on its way to fulling the company and its shareholder aspirations.
I agree with your valuation Grower and I've quartered the valuation and quartered again and still come up with 59pence plus my valuation was for PIII and CCS the rest I didn't bother to value.
There appeared to be a Georgian O&G news blackout so I'm hoping something serious is going on.
Personally I hope the Chinese just come in and seal the deal.
Further reading if anybody is interested, reading Blocks article and comparing them to others shows the quality of the management team at Block. If people aren't taking as a serious part of the farm out theyre beyond help.
Blocks CCS is of massive significance to the Farm in. $60 dollars a ton? The figures are eye watering.
https://www.blockenergy.co.uk/projects/carbon-capture-and-storage-opportunity/
https://www.aramco.com/en/what-we-do/energy-innovation/advancing-energy-solutions/carbon-capture-utilization-and-storage?utm_source=&utm_medium=&utm_campaign=&utm_term=&utm_content=&gad_source=1&gclid=EAIaIQobChMI_9CFld-_hQMVuZRQBh1r4wWHEAAYASAAEgLe1vD_BwE
https://www.shell.com/business-customers/catalysts-technologies/licensed-technologies/emissions-standards/tail-gas-treatment-unit/cansolv-co2.html?utm_term=carbon%20capture%20systems&utm_campaign=Carbon+Capture+Storage&utm_source=adwords&utm_medium=ppc&hsa_acc=2377408393&hsa_cam=19307585722&hsa_grp=143244881486&hsa_ad=641920583212&hsa_src=g&hsa_tgt=kwd-1200854581414&hsa_kw=carbon%20capture%20systems&hsa_mt=p&hsa_net=adwords&hsa_ver=3&gad_source=1
https://www.opc.co.uk/projects/gardabani-rustavi-carbon-capture-and-storage/
How much is the carbon capture industry worth?
The Global Carbon Capture, Utilization, and Storage Market Size was Valued at USD 2.98 Billion in 2023 and the Worldwide Carbon Capture, Utilization, and Storage Market Size is Expected to Reach USD 25.3 Billion by 2033, according to a research report published by Spherical Insights & Consulting.
Petra Nova is one of the most successful carbon capture projects globally, located in Texas, USA. The project was launched in 2017 and is a collaboration between NRG Energy and JX Nippon Oil & Gas Exploration.
The facility captures CO2 emissions from the W. A. Parish power plant by using a chemical solvent to separate the CO2 from flue gas. The CO2 is then transported via pipeline for storage in an underground oil reservoir.
The Petra Nova project can capture around 90% of the CO2 emissions produced by the power plant, equivalent to 1.6 million tons of CO2 per year, which is then used for enhanced oil recovery (EOR).
The Gorgon Project is a large-scale carbon capture project based in Western Australia. The project captures CO2 from natural gas production and stores it in underground reservoirs. The project is significant because it demonstrates that carbon capture technology can work on a large scale and in remote locations.
So to Block Energy, the development and production company focused on Georgia, has announced a study identifying a Carbon Capture and Storage ('CCS') opportunity within the Company's Block XIB with the potential to support a major net-zero CO2 industrial hub.
The Middle Eocene volcaniclastics facilitate the movement and efficient containment of injected CO2 and sections are abundant with Zeolites, highly reactive minerals, enriched with substantial calcium, that enhance the potential for successful and sustainable CCS by Mineralisation.
Commissioned in the course of the Company's Project III development planning, was undertaken by Oilfield Production Consultant ('OPC'), a consultancy recognised internationally for its expertise and experience in this field.
How much is captured CO2 worth?
"It can either be injected and stored in underground geological formations, or used in enhanced oil recovery (EOR), where it’s pumped into oil reserves to squeeze more oil out. “You get 85 dollars a ton if you put it in a geologic formation and 60 dollars a ton if you use it for enhanced oil recovery.”
https://climate.mit.edu/ask-mit/how-much-captured-co2-worth#:~:text=It%20can%20either%20be%20injected,it%20for%20enhanced%20oil%20recovery.”
After reading the above just how much is a junior E&P oil and gas company worth with a 8.7 tonne Carbon Capture system on its oil and gas fields?
Oh dear Bedex but go on I'll have a nibble and reply to the wider board, Bedex is a person that isn't invested here and lost his shirt on Frontera,DNL,TIDE and PHI yet has had a change of fortune and is now in his own words 'doing very well with a decent portfolio of investments thank you' Bedex has also moved on from Frontera but is still posting on that stock thanking those that are working relentlessly to bring it back. He hasn't posted on much else either but his share picks are TIDE,DNL and PHI if posters would like to know so it's worth looking at what Bedex has been punting and where those stocks are now before taking his advice on Block, thats more proof he's lost more than his shirt.
So Block.... fours projects and a CCS, one is the oil play which is providing the income, another project has the GOGC on it as a JV partner and another project IV has independently reported 2.77TCF of gas and this project is also now up for a farm out which is about three months into the process but may have started in December.
So lets look at PH, took but got slated for it shares instead of Salary during covid amounting to 40% of his salary, other directors did the same. If this was a rinse out job you'd take the cash not shares in a company your building. Folk will say these shares were free, they were in lieu of salary, also if this failed the shares create a material loss, it's in their interests to get the share price up.
PH got for a pittance Schlumberger's Rustaveli Company Limited which contained production data from over 150 odd wells, 3D-seismics and well logs. This increased Blocks acreage 30 fold.
Then there's the Carbon capture Storage facility that can take an estimated 8.7 gigatonnes of carbon, thats the equivalent to offsetting emissions from Turkey for 20 years. Tell me another junior oiler that has thought of something like thats let alone has one.
Block has 724million shares in issue, look at other oilers, they run to the billions hence why they struggle to get value for shareholders, then look at Bedews beloved FRR, 18 BILLION shares in issue with a raise whilst suspended.
So there we have potted history of Bedex but most importantly Block its done from research not bitterness from losing on FRR,Tide,PHI or DNL a,nd making false statements about PH and the company, and lastly if you still want convincing look at Bedexs posting history rafts of posts on Block and Frontera but nothing on the portfolio transforming stock that he's 'doing very well on'.
So in conclusion research is key here, Block have been operating in Georgia since 2017, other oilers have gone through the same process and timeframe and had a similar ride before they transformed themselves.
Now is the time.
I think most of us are positive on this, the company is in a transformational position.
Theres some serious multi bagger opportunities here for those in at these prices, plus the timeframe from IPO is about right for when a company transforms itself.
I really can't believe that this is being discussed again, Ph had delivered a four project campaign plus a CCS.
BO,Bedex and the others just have zero idea what has been developed here and are crying in their chips over FRR.
The company presentations and RNS plus a wider look at what CCS etc is all about should show that this is all to play for.
News is slow, the infrastructure to produce Jet A1 isn't as far as I'm aware in place, Georgia petroleum is responsible for its import. It would be interesting if the refinery did start to produce its own in quantity, I'm not sure if you're aware Avi8r but Georgia isn't a backward redneck country there are several airlines that operate in and out of country daily with may connections in and around Europe.
Can you tell us Avi8r why you think it'll be May at the earliest? if I remember correctly you have always had a downer on PH and did spend considerable time knocking him so I do wonder if thats the case why you're hanging on so long.