Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This is excellent news for shareholder as the CPR didn’t cost Block a penny yet it has helped secure the license for the long term when it would otherwise have expired next year and provides Block with a free carry from GOG Ltd. What’s not to like about that?
We also know that the CPR for project III should be delivered by the end of the month and reported to the market by January 7th. Unless the market cap increases significantly by then Block will be extremely vulnerable to a buy out by a much bigger fish imo, so a very strong hold for me but I’d certainly be a buyer here if I didn’t already have a decent position.
We don’t know for sure that they have stopped the project 1 drilling programme as the spudding of the next well was trailed in the last update so there is no need to go to the expense of putting out a RNS to announce it. In addition to the exchange fees it would involve fees for the broker, Nomad and PR team so why bother if you are in cash conservation mode?
Well no sign of that so far, but the market makers do have up to three days to report large trades and will often present them as sells once news has been released. Identifying the size of the trade beforehand would help us identify it properly as a buy when it appears. Otherwise your post might be treated with some suspicion.
Hepseal I think there are only two possible explanations for that. The fist is that supportive shareholders like Amati have put pressure on the board for a change in strategy because the success of the project I wells has done nothing for the market cap whereas a successful project III well could be transformational. The other explanation could be that they have not bothered to RNS the spudding of another project I well so as to surprise the shorters and doubters once the results are put out there.
I think it was inevitable that they would sell the stock they were issued on flotation to fund their own activities. However Block clearly beat them to it in acquiring the former Schlumberger block and operational assets, and if you can’t give Haywood credit for that why are you still here?
I doubt it has anything to do with FRR Anotherlambo. Its alter ego that used to infest the Advfn board is clearly a representative of the Scottish concert party who tried to replace the board here for their own nefarious purposes, but other significant shareholders like Amati were clearly having none of that.
I’m damned if I’m going to waste time going through my entire trading history on this stock for your benefit as it won’t change your sinister agenda one jot, but the advice I would give to others is to learn something about TA and buy when the RSI is in the low 40s or below and sell when it is the high 80s or 90s and you won’t go far wrong. I suspect too many of the moaners here did the opposite and that is why they lay all the blame on management rather than themselves.
Well I’ve taken profit on spikes and bought the lows Sarah, so it’s been reasonably rewarding to me, but the real rewards will come once that deep gas is monetised and that’s why I have been in buying mode since the recent interview.
As to knocking on Block’s door I live a very long way from London, so I must leave that to others.
Prax 14 are you one of Sarah’s alter egos? I see your profile was only created on 25th November. The interview confirmed that the focus is changing to exploiting the enormous gas resource in project III and I am sure that is something that is top of every significant shareholder’s wish list , so it is no surprise to me that someone with deep pockets decided to top up yesterday.
Madman-Rob, you really should read Tennyson’s research note which is now available to download from Block’s website. Then you will understand the new focus on the gas in project III. They see the completion of the revised CPR as a significant value catalyst and Paul Haywood confirmed in the interview that this should be released to the market no later than 7th January. That probably explains the large buy yesterday and I am sure there will be more in the days and weeks to come.
FWIW I have added another small tranche today, but along with the other trade it is shown as a sell thanks to the spread..
That’s possible Hepseal but it’s also worth revisiting the news from April which contained the following statements:
“The MoU between Block and the Ministry covers government support and initiatives to assist in the development of Projects I, II, III and IV through data sharing, cooperation and the facilitation of meetings with national and regional large oil companies.
In particular, the MoU supports the concept of a long-term gas offtake agreement, which is an important part of delivering value associated with Project III and the 1 TCF contingent resource identified by Block's subsurface team and supported by internal contingent resource reports. The MoU also covers other areas of cooperation, including geothermal, carbon capture and storage, specifically the south dome project located within license XIB and hydrogen projects across Block's licence areas.”
If BLOE has managed to secure that gas offtake agreement then they should have no difficulty in achieving a farmout for project III.
Hepseal what I am saying is that priorities can quickly change if someone with much deeper pockets comes sniffing. My reason for investing here has always been about the vast quantities of gas in project III, which once tapped will provide Georgia with the energy security it needs, not the relatively insignificant project 1 wells. If the $30m investment that is quoted is coming from a farm in investors should be delighted rather than whinging about the lack of progress with project I imo.
Hepseal since the June interview we have add the Q3 update which contains the following statements:
“During the quarter, the Company's financial position continued to improve on the back of strong sales and a higher, relative to last period, oil price. This ongoing improvement in the Company's cash position will drive additional work across its various projects, with an immediate focus on Project III.
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.”
I think it fair to say that indicates a change in strategy and it is also possible that a draft CPR has already been shared with prospective farm out partners, hence the CEO’s recent visit to Georgia and the mention of $30m investment. I think most shareholders would more than welcome a change of focus, particularly if a bigger fish is providing significant funding for project III.
Thanks all. I’ve been adding to my holding whilst others have been whinging here as that’s often a good indication to a contrarian like myself, and there’s inevitably a bit of silence from a company when discussions are ongoing as seems to have been the case here.
It’s also interesting to see that U.K. and Georgian Governments have developed a closer relationship recently: https://www.economy.ge/?page=news&nw=2408&s=genadi-arveladze-saqartvelo-miznad-isaxavs-gaertianebul-samefostan-xangrdzlivi-da-aqtiuri-tanamshromlobis-gadzlierebas
I wonder if Paul Haywood might have provided a briefing towards this ?
Ah…my bad ( as my kids would say) Hepseal. I had assumed the video footage was current, but nonetheless Haywood is in Georgia for a reason and talking about horizontal drilling in project III judging by his hand gestures. There’s also the issue of $30 million being invested so possibly a farm in partner has been secured, at least in principle.
Paul Haywood has just done an interview with Business Media Georgia: https://fb.watch/oEgrWPzrBM/ Unfortunately it’s a voiceover job in Georgian but if you sit through it you will see that there has been a hive of activity at the well sites including stimulation of wells through the injection of nitrogen. There’s also these strap lines:
👉 $30 million investment in oil and gas sector - what plans does Block Energy have?
✔ Georgia should be positioned as an investment attractive country, today's popularity is low - Paul Heywood;
✔ "We will start horizontal drilling works on the gas field next year" - Block Energy;
➡ Paul Haywood - Executive Director of Block Energy;
#საქმისკურსი #ბიზნესმედია #საქმიანები #BMG 👇
I suspect we will have some positive news once Haywood has returned from Georgia.