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Hello EXMEX,
You mentioned an apparent discrepancy with Paul’s comments in an interview he gave about June time, regarding the 3D-Sceismic survey.
I had written to Block about Paul’s comments in this regard in his interview with Proactive (published 2nd July 2019 time place 6mins 40 secs) https://www.youtube.com/watch?v=26PKLLiYQ0o
My query was stated as below;
‘From watching the interview again and Paul's choice of words, it does seem that Paul was aware that he was stating a different size for the 3-D seismic area than 38 square km. In which case and if this was deliberate, and not a mistake by Paul, please would you advise where he is anticipating the other 40 km survey will be carried out? This also begs the question if there was no intended additional square 40km survey why did Paul deliberately say it? - Very confusing.’
Justin’s replied as follows:
“With regard to the survey, it is focused on our West Rustavi field, which as I've referenced, and as you note, is just under 40km in size. But in order to cover that field fully the survey will necessarily extend a region of 40km or so beyond it. It is in the nature of these surveys that they must 'overspill' their target zone: if you need to map a 40km area using seismic technology then you need to survey a larger area to ensure the target area is covered. It's a somewhat crude analogy perhaps, but imagine trying to fully cover a ringed area on the ground with a paint poured from a bucket: to cover the area you are going to spill paint beyond it! This is what Paul meant when he referenced an 80km area - we are only interested in the target 40km zone.”
GLA
I was not sure what heading to use, so hope using 'Justin’s Replies' is okay.
I have now had a response from Justin at BLOCK to some queries I sent him last week and he has advised the following:
“In regard to 3D seismic, we are in the process of negotiating a contract with suppliers who will undertake the survey, and gaining the regulatory clearance with Georgian local and central government necessary for it to go ahead. The survey will cover the 36.5km West Rustavi field. We use the word 'acquire' when referring to the survey because that is a customary term used in the oil and gas sector: companies 'acquire' the results of a survey.” I know we already knew this, but someone on this BB (I can't remember whom), queried what PH had recently said about the size of the survey, so hopefully this will confirm the exact size for the planned survey.
I also enquired about the technology BLOCK are using for downhole perforation and if the method depicted in a You Tube clip, I found @ https://www.youtube.com/watch?v=JKQmVd7fPus was a good indication of the technology BLOCK were using. Justin replied, “The YouTube clip you provided gives a high-level view of the kinds of technologies we use (though I'm not aware if we use equipment from GE). We ensure that all of the technology we contract is state-of-the-art, and tailored to the particular challenges presented by Georgia's oil and gas bearing formations…)”
Justin also remarked that “As a general note you might find our analyst note quite helpful - this is the 'Building Blocks' document that can be downloaded here:
http://www.blockenergy.co.uk/investors/company-reports/
and added, “It isn't as technical as our Competent Person's Report, but goes into more detail about our assets and the nature of Georgian operations than our market updates and corporate presentation.”
I am not sure how much of the above will be of use if anything to others on this BB, but hopefully Justin’s remarks clarify the intended size of the 3D seismic survey if anyone was in doubt and the You Tube clip; and the 'Building Block’s' doc might be informative for some shareholders.
GLA
Share price
Madmanrob and MeanMrMustard, I do not have as much as you invested, but have 272809 shares at wavg of 11.3p across 3 accounts. I like some others are concerned that shareholders were not informed until many weeks after the event, that well 16aZ was shut down; especially as many investors may have assumed in the absence of any information to the contrary that Block was generating enough revenue from 16aZ to ensure the company was self-funding. However, despite the omission to advise 16aZ’s shutdown, I like you still believe that the share price will come good in the not too distant future.
in case anyone is intereses i advise that a couple of weeks ago I wrote to Justin at Block, enquiring about what PH was referring to in one of the early interviews, ( https://www.youtube.com/watch?v=jUw8Z2zY-Kk ) PH gave shortly after Blocks placing, wherein PH stated that he expected and anticipated some possible well damage from the outset, but despite this was nevertheless confident going forward that he had identified the necessary technology to overcome this possible damage and that he would have this necessary technology in place as and when required to address the possible damage he anticipated could happen. Justin got back to me in this regard on the 7th Instant and advised “I'm just checking our reply for accuracy with one of our technical team." I wrote to him again today to chase up my enquiry and he promptly responded advising that he would chase up the technical people and get back to me.
Just in case anyone else is interested in the Justin's reply, and assuming he does reply, which I have every reason to believe he will do: as he has always so before, I will post his reply for others to see as and when I have it.
GLA
Yes Bungle66 I would generally aggree with you, but think that as the word 'very' was placed between hash marks that these marks could have been deliberately added to draw attention and for empasis. I also think that Justin might have assumed I would post his reply on this BB as I had informed I had done so before and wnated others to see the emphasis.
Who knows?
Of course I could be completely wrong.
Lest hope we all find out soon.
I have received a similar reply as spike912 but slightly different from Justin I.R.O. another email I sent to Justin yesterday, that others may find informative.
“Thank you for your enquiry. As you note there are regulatory sensitivities regarding what I can share, but what I can say is that we continue to gather information regarding the well's performance, and will issue another update as soon as we're able. In parallel to that we are pushing ahead as planned with our wider West Rustavi programme. You'll appreciate we need to take some time before each announcement to ensure the information we share is accurate. But we are *very* keen to keep the market up to date with our progress.”
Kind rgds,
Justin
So that Justin’s response can be seen in context I quote below the email I sent to Justin.
Dear Justin,
Thank you very much for your reply to my email, especially as I imagine you are very busy trying to reply to many concerned investors (as suggested by the recent comments posted by many of them on the LSE BB) following the confusion resulting from BLOE's most recent RNS and the resulting dramatic drop in the SP.
I did share you response to my email on LSE BB, and hope this was okay. I think your comments did give investors some hope for a time that you were aware of their concerns and that PH would be advising the market soon about the current position with respect to clean-up and flow rates.
Can I ask if you, or PH are any closer to being able to clarify the confusion about why the flow rates from 16aZ reported in the recent RNS were considerably lower than PH had appeared to suggest in his numerous interviews and also how long it is expected before 16aZ will be sufficiently cleaned-up to return to the flow rates PH had suggested in his recent interviews; or if they have returned to these flow rates already.
I appreciate that all information is super sensitive, particularly flow rates, but some indication of where you BLOE are in generating a response/update to investors' concerns might really help to regain many investors' confidence.
Thank you in the hopeful anticipation of an answer to this email.
Kind regards,
I obviously do not have any knowledge of when an update will be made, and I could be being incredibly naïve, but accepting the limited info Justin has said he feels able to share at this moment, then the use of the word *very* could suggests an update will be coming very soon. I certainly hope so.
GLA
PH held presentation meeting 21/02/2019 which was published on You Tube (poor quality) - Only 23 views recorded, so I would assume most investors on this b.board have not seen this video yet, but might find it informative. PH talks about multiple gas discoveries and that then they were currently drilling first sidetrack well. Hopefully, some might find this video of PH informative.
https://www.youtube.com/watch?v=Z2fcfdMTAVQ
(I was particularly interested from 16mins 12 secs when a PI asks PH about stabilised production and period of testing for wells including for West Rustavi, which others might find interesting.
If this has already been flagged, I apologise for flagging it again.
GLA
See Daniel Gooding’s interview with Anita Riotta on the 19th July (at 6 mins 50 secs)
https://www.youtube.com/watch?v=h3PvBiROlbc
Am not aware if any payments from China made since above interview date.
GLA
Bungle66 I too can fortunately afford to sit tight and hope for news. This is my largest single holding and I added more by selling some other shares I had been holding for 8 months, which a few days after I sold them needless to say went up over 25% - Typical! I too hope I have not been foolish in believing PH.
Does anyone know when the well was turned off and when the clean-up operation actually started or when the well was brought back online? I am not an oil person, but from previous investments I seem to recall it takes appx 10 days max for clean-up operation. Any views on this from experienced PIs would be appreciated.
GLA
I rarely post but would advise for what is worth that I emailed Block Energy this morning enquiring if PH was going do a follow up interview IRO Friday's RNS and if so when would it be done and with whom.
Block Energy replied at 14:59 to advise:
“Thank you for your enquiry. Just to confirm that we always give careful consideration to appropriate interview opportunities, and Paul will certainly make another of his regular appearances in due course. You'll understand that AIM regulations do not allow me to be more specific than that.”
FTR - I still have confidence in PH, but I am currently showing a 32% loss (I would guess I am not alone in this), so I would be very keen to hear from PH about the current situation IRO 16aZ and the apparent omissions and conflicting comments about production flows and the clean-up.
Hopefully, news will be coming soon.
GLA
certianly = certainly
I too am wacthing closely and believe that in the not too distant future we will hear some very positive news that will cause the SP to climb. I certianly hope so.
FTR - I currently have just over 560K worth of shares and will continue to buy more on any future dips if I can.
Oldtrader2 thanks for your reply. I agree we are seeing buyers get a great deal, but the drop in SP imo seems disproportionate for the volume of trades today. Was just wondering if I had missed something important. Hopefully the SP will bounce back up soon.
Share price moving wrong direction - I have missed something?
Others views would be appreciated.
I would like to add my voice to al the others on here who have expressed concern for you. I am not in the habit of sharing my life with people I do not know, never mind on a public board. But I hope in some way what I say might help. Believe me when I say, I too know what it is like to lose everything, your home, your business and whilst it is all going down, also loosing someone you love very much. At first everything can be overwhelming but eventually please believe me you will see the wood from the trees and will then start to rebuild. Many others on this board have said that money isn’t everything – They are right. Making a mistake is something that we all have done, and I think you would be hard pressed to find someone who hadn’t been foolish at least once in their life. I remember when I lost everything, feeling foolish and ashamed, and the life was not fair, but over time I rebuilt my life. So please keep your chin-up. Please try to talk with someone today. And believe that things can get better.
I lost quite a few K here, I took the risk and lost, but for me at least I still have my home and my health.
I am new to trading and I have learnt a lot from this experince. So hope I do better next time.
I am sorry for everyone else who lost money here and sincerely hope you all do better on your future trades.
GLA