Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
And this needs to be read in the context of this RNS:
11 April 2022
Block Energy plc
("Block" or the "Company")
MoU with Ministry of Economy and Sustainable Development of Georgia
Block Energy plc, the exploration and production company focused on Georgia, is pleased to announce that it has entered into a Memorandum of Understanding ("MoU") with the Ministry of Economy and Sustainable Development of Georgia (the "Ministry").
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.
Commenting, Paul Haywood, Block Energy CEO said:
"This MoU reflects the strength of government support for the development of Block's assets, which will be helped by the sharing of data and other cooperation initiatives. 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.”
I would imagine that the answer to that question lies with this statement in the Q3 update: “ Average production for Q3 was 630 boepd which, combined with a healthy realised Brent price, means Block continues to build its cash position, which can be redeployed to advance its higher impact opportunities, such as the significant multi TCF contingent gas under Project III” . Let’s face it the significant shareholders here will never get a return on their investment without a more ambitious strategy and I suspect that the focus has been on securing a farmout to achieve the above objective, under pressure from the funds and HNWI’s invested here.
In many years of investing I have yet to see an AIM listed company not to seek additional share issuance authorities at its AGM. For Arc to be that confident in its ability to fund Botswana exploration together with the possibility of securing additional licenses as mentioned in the conference call I can only assume that they are close to securing a JV partner for Bots. Ergo the assays we have yet to see must be bloody good imho.
There’s also this, courtesy of Hazl in the other place:
https://www.moroccoworldnews.com/2023/10/358057/uk-ambassador-morocco-british-ties-continue-to-expand
This mentions the possibility of a ferry service between U.K. and Tangier, which would be very useful for transporting kit and personal should QFI get a decent foothold in that country.
This will be relevant going forward given the difficulties Quadrise has experienced with getting equipment through customs: https://www.lopinion.ma/Maroc-Royaume-Uni-la-strategie-de-Londres-pour-elargir-la-cooperation-economique-au-dela-du-commerce_a46153.html
Does anyone know if this is close to Kamatavi?
https://www.lse.co.uk/rns/RRR/lithium-update-exports-4d3l4ugo6mrue3g.html
Many thanks Datacheck and iky. I now feel much more confident about CB and his team bringing home the bacon and will add another tranche tomorrow.
Thanks Datacheck. I’m a fairly infrequent visitor to this board but I will look out for it.
Are you going to the AGM Datacheck? I’m afraid I will be unable to make it, but would be most appreciative of some feedback if you are able to provide it.
The Bots assays went to a lab in South Africa if memory recalls, so there’s only one reason why Vassili has headed up to Bots and that’s to meet up with drilling contractors and peg out sites for further drilling imo. The question is will it just be a modest campaign or is there a partner with deeper pockets coming in?
Well it’s got off to a better start today Gary and the ask has already ticked up after just two trades. According to II the stock is currently trading at a discount of 55% to its assessment of fair value, so now is the time to accumulate imo, and not when it’s already been marked up after the next RNS.
On the subject of increased revenue there is an auction of 10,000 tons of oil taking place on 6th November: https://m.facebook.com/story.php?story_fbid=pfbid02zhf7h77K7b2U9CbnjBAhjTxMTJqQNBEcLzUFCiHz9Ke1ieaw51EH55gKd4PrSvXGl&id=615313671911493
Most of that will have been produced by BLOE imo and I expect we will have a spud RNS shortly thereafter. Good time for the quiet accumulation to continue imho.
And of course this:” As per the minister’s statement, there won’t be a need for additional licenses for the extraction and utilization of geothermal energy and renewable hydrogen related to hydrocarbons. This approach is aimed at promoting these specific energy sectors.”
From Georgia Today: https://georgiatoday.ge/in-2023-georgias-oil-extraction-soars-by-207-announces-levan-davitashvili/
“At this stage, a draft of amendments to the Law on Oil and Gas has been developed, according to which the holder of a general license for the use of oil and gas resources will be granted the right to use thermal energy associated with oil and gas. In case of interest, the right to extract natural hydrogen from abandoned liquidated oil and gas wells,” said Davitashvili.”
Summary posted on Advfn as follows:
Block Energy is seemingly cracking the code to unlocking the substantial opportunity across its vast acreage position in Georgia. Since listing on AIM c.5 years ago, the company has enjoyed mixed successes at the drill bit. The company’s latest well however marks its third success in a row, with its latest three wells flowing at initial sustained rates of c.344, 269 and 150 boepd, respectively. These wells are paying back over a period of around 3-8 months, meaning that each successful well can have a snowball effect on group production and cash flow. This ensures that at a minimum the company can be self-sufficient in its growth, with discretionary cash becoming available for higher impact opportunities in due course. These opportunities could include the appraisal and re-development of Block XIB – historically the country’s most productive licence, and referred to by the Company as “Project II” – or deep gas appraisal drilling (Project III) which, having been confirmed by over 40 gas tests during the Soviet period, is expected to offer multi-Tcf potential. Next year we forecast annual EBITDA of US$6m, rising to US$11m the following year as additional Project I development wells come onstream. As discretionary cash flow builds, we see material catalysts added to the near-term work programme, which should serve to reignite interest in the company. We carry an updated 4.0p/share target price, offering over 3x upside.
published by tennyson today: https://*********************/companies/uk/oil-gas-e-ps/block-energy-plc/research/tennyson-securities/tennyson-energy-research-block-energy-code-breakers/82c48f72-069b-431c-b57b-82abea7ac855/d76c26a3-c5c0-4bfa-9b92-a43287a6cabd
if anyone has an account can you please summarise?
If you look back at the trades over the last week there are numerous 500k and 250k buys, albeit that some are shown as sells owing to the spread. Some ‘sells’ are obviously buys when you consider what the market makers were paying for smaller quantities. My hunch here is that one or more II’s are taking advantage of this lull to get their average cost down or possibly to start building a position.
Should we get a TR1 from one of them that would do a lot to restore confidence here imo.
Thanks for reposting Fatboy’s excellent post on here fulmar. It certainly negates the lies spouted on here recently by Mushinge and his crew, which accelerated the sell off. I’m a buyer here now and expect to see a substantial recovery in the share price now that the lies have been truly knocked on the head and the perpetrators banned.