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I suspect a few people will be contacting IR today for some clarity. So nothings changed still waiting for news on Beebei and Kenya.

Ghana disappointing up to now, as 7 drills since 2021 ($350M cost) plus the pre-emption acquisition cost has so far only netted us an additional 4 - 5K bpd. The declines in Ten really have been brutal. Well if they can get Ten up to 50K as suggested in this update (2025 is a long way off though) and god knows how many wells, that will improve net position by 15K bpd, but looks like this is being primed for a narrative of a mixture of oil and gas.

There's the answer to why the merger is on the back burner to the end of the year because on those numbers for this half Capricorn shareholders would not be queuing up to vote for the deal.

Riskinvester yeah I had to re-read it but they decided to list Total debt not Net debt, which is odd compared to how they have always presented Net Debt position since RD has been here.

Well we continue to wait for that jam.

This is the thing though waiting for finance or 2 fully funded sidetracks from existing resources both scenarios RNS'd from Block, which is it? Sorry PH has to go comms is as clear as mud and sick of this forever changing of goal posts. Likely one drill before winter if they spud now. Oil and Gas are going to be through the roof this winter. What's the hold up with the 2 drills that are funded or is that just another fabrication?

It's clear from the drop this morning that ignoring all the bluster one drill a half is not enough and production is basically flat. A disappointing half with oil trading at $120 at points. No acknowledgement about why it's taken since February to go again, it's clear that they were trying to conserve cash they just didn't want to say it. When are they going to spud again? Still none the wiser and it's there for all to see that declines are happening. Drilling to stand still doesn't get investors excited.

Chesh I know you type like you are from another planet but the special resolution allows modification of section 551 ( covered by ordinary resolution 6 which I'm not opposing). The allotment of shares and equity raises have no pre-emption for existing shareholders. See b.) below For info.

570(1) Where the directors of a company are generally authorised for the purposes of section 551 (power of directors to allot shares etc: authorisation by company), they may be given power by the articles, or by a special resolution of the company, to allot equity securities pursuant to that authorisation as if section 561 (existing shareholders' right of pre-emption)–

(a)did not apply to the allotment, or

(b)applied to the allotment with such modifications as the directors may determine.

570(2) Where the directors make an allotment under this section, the provisions of this Chapter have effect accordingly.

570(3) The power conferred by this section ceases to have effect when the authorisation to which it relates–

(a)is revoked, or

(b)would (if not renewed) expire. But if the authorisation is renewed the power may also be renewed, for a period not longer than that for which the authorisation is renewed, by a special resolution of the company.

570(4) Notwithstanding that the power conferred by this section has expired, the directors may allot equity securities in pursuance of an offer or agreement previously made by the company if the power enabled the company to make an offer or agreement that would or might require equity securities to be allotted after it expired.

Well AGM proxy is available now, for those wishing to vote the 2 resolutions of note are:

Resolution 2 - To re-elect Paul Haywood as a director of the company

Special resolution 7 - To authorise the directors to allot equity securities pursuant to Section 570 of the companies act 2006.

There have been plenty complaining about the leadership and salaries for shares scheme so this is the opportunity to directly show these frustrations. I have emailed my broker this morning asking them to submit my opposition to both resolution 2 and 7.

What? who mentioned GBP. Exchange rates have been all over the shop since war in the Ukraine. Will be paid in USD yes but suppliers, contractors, employees in host nations and payments to host nation governments will be paid in a variety of currencies. It's not something I'm flagging as massive just something Im looking to see how it's impacted due to the volatility since February as any multi-national organisation operating across many borders generally does. Sheesh.

Sorry that should be Net profit. Got carried away with replying to Operating profit.

Turnover should be conservatively north of $800M - $900M for H1 (181 days at 64,000 bpd), if they are at the upper end of production guidance, the cost of hedging being the main unknown drag. RD will face questions if there isn't gross profit after CMD outlined cost savings and this significant step up in Turnover. Gross profit will nor be available though until the half year report in September.

I'm hopeful we have been profitable this half, though I'm conscious of the court settlement, decomissiong costs, financing costs, currency costs, the acquisition, the shutdown, continued declines at Ten and the high Capex on drilling and infrastructure maintenance in this half.

I think you miss what is the major point here if they haven't the cash as you suggest to pay the directors then they should be on reduced salaries don't try and paint it as they are doing shareholders a favour, as they are not. PH and Co created this business and so far all it's done is eat through millions of funds for very little in terms of outputs. Assets have value but this BOD have failed by there own measures documented both at IPO and revised, to extract the value promised. So that is what they are judged on, I will exercise my frustration at the AGM in the form of opposing resolutions if enough do the same they will get the message. Happy clapping helps no one. This is a publically listed company not PH's fiefdom and we are his lowly serfs.

Also for the record targeting 2 intervals and 60 day estimated drilling time, so still around 15 days left if the estimate is accurate.

Supercooper there's nowt like making up your own reality, like there's some sort of standard to leaking information on an incomplete drill. It's usually small caps that give a running commentary because they usually are reliant on its success and screwed on its failure in some extreme examples.
Medium/large/major/supermajors all release results when they have finished and often then some, maybe to further test or appraise the recently obtained seismics from the drill. I have never seen Shell give a running commentary of any drill ever, like they were in the Big Brother house or something. Utter tosh.

Sadanby001 which sectors, it seems to be just food banks at the minute.

With the worst inflation in the G7, low labour availability, stagnant wages, low household disposable income, a summer of strikes, highest tax burden since the 50's, low output and productivity the signs are there but hey you keep believing the BoE is lying to you for some reason or other. Whatever floats your boat.

Recession fears are really a drag at the minute. The UK and Russia are almost certainly facing recession, China no chance, US slim chance, Eurozone possibly. But as long as there is even just modest demand relative to normal periods in China, India and the US any demand destruction is unlikely to shift oil down much i'd be surprised to see $60 even if countries start to fall into recession by the earliest of the end of the next 2Q's. I say this for a few reasons, OPEC does not have the capacity to pump that additional phantom 5 million bpd, Russia will be sanctioned for as long as Putin is in charge as the game has changed now no more appeasement, collectively global production is still less than before the pandemic, hurricane season in the USA is nearly here and most importantly global total recoverable oil is falling off a cliff. Oil is a finite resource and none of the majors or GO's over the last few years have been pumping money into exploration.

The market may get sentiment jitters but the reality hasn't changed that supply is tight. A recession is something that has already happened, a period of decline as trade and output figures only become definitive after they are released. How many quarters a recession lasts or how far GDP falls normally hits oil hard, but after only coming off the back of such low prices recently a drop back so soon would lead to the mother of all supercycles because it's chicken and egg then even $200 could be a reality as oil companies now are all either still bruised, trimmed down, capital restrained, massively indebted or critical as a result of 2020. At $45 and CEO of oil plc are you going to sanction what little capital you have on big expansion projects of course not. Nobody knows ultimately but until there's a sign of a glut I think we are quite safe. This is also why we hedge.

https://www.google.com/amp/s/oilprice.com/Energy/Crude-Oil/Total-Global-Recoverable-Oil-Reserves-Are-Falling-At-An-Alarming-Rate.amp.html

Are you often incouraged? I mean I and E couldn't be further away from each other on a keyboard or on your phone. Have you really gone through life not knowing how to spell encourage? I can't even type your iteration, autocorrect corrects it for me. Anyways not to be the spelling and grammar police but my god that needed pointed out. Anyways nobody cares about your spread bet.

I gave him a pass on that raise as the narrative was that was to be used for the acquisition which I think will still end up value accretive the IPO and other raises on the other hand have mainly just been exercises in failure with only a modicum of any notable success.

I would go further than could do better... with someone else. PH has lied repeatedly throughout his tenure, just compare words that came out of his mouth 4 years ago in interviews, watch proactive investor and work your way forward to those today, the Vox markets one's are less PH centric as he mostly just fobs off to Ghuram or someone else to give updates.

The thing I find mind boggling is that everything at IPO has pretty much fallen apart. They just changed the goalposts each time the plan failed to deliver what was set out. 550 a well they said but it's actually really a great success when a well only hits 250. Remember they were actually extracting water for a period that they let the market think was oil. Anyways promised 10 wells all funded from the initial raise and would move forward with FCF fuelling further development (self funding only was one of the USPs), as they would immediately become cash positive and the completions they were called back then or sidetracks as they are known now would take only 2 to 3 weeks each to drill. How many wells have we drilled in 4 years? Certainly isn't 10.

Well It's taken 4 years for West Rustavi to become cash positive, an additional £5.28M fund raise thrown in for good measure, because that first £5M couldn't complete the sidetracks outlined at IPO. So what does £10M get you? £1.6M in cash, your shares devalued every month as they pay salaries in equity to save cash (even though they are FCF positive according to the RNS's), 600 Boepd and a farm in acquisition with only £1.6M to develop currently. Honestly now and be honest if someone gave you £10M right now and however much the equity for salaries has cost us, I bet you could do better than assets you haven't yet got the funds to develop, and just £1.6M of cash.

We gave him the benefit of the doubt during the pandemic but if anything progress is worse than ever. The rig has been available since February and it's July next week... still no spud. This is not a completely new well either, it's a sidetrack to an existing well.

If it wasn't for the assets that I believe do hold value, I would have left long ago. You could have the best ship in the fleet but if it's captained by an individual that seems to make more bad decisions than good (only to change the narrative afterwards), it's only a matter of time before you sink or are sunk. PH has rolled the dice too many times at the shareholders expense, the WRB-1 sidetrack by Blocks own account, is a second stab at a drill that is 3 years late. There is nothing to do to convince me that he's not out of his depth, unlucky I thought for a time but clearly there are bad decisions and mismanagement everywhere you look here.

Madmanrob AIM rule 26 has that covered executives have to be re-elected. When the notice is issued you just need to know which resolution to vote against and then email your broker they will send your instructions.

From Paul Heywood's LinkedIn

"Paul Haywood
Chief Executive Officer at Block Energy plc
Block Energy plc
United Kingdom500+ connections

Highly ambitious with a proven track record of achievement.

International experience in the UK and Middle East.

Cross-functional skill set with diverse experience and capability encompassing research, strategy, implementation, capital and transactional management.

Strong leadership, commercial capabilities

Focused, organised, methodical and highly adaptable"

Just word salad, the Georgian deal was not his baby a case of who you know rather than anything else, my CV looks better than his if we discount CEO at Block... even then. Also not much prior to 2012 and in terms of achievement here, 6 years and 6 months of cash burn and just his own past words haunting him... some of those old YouTube interviews are shocking when compared to what has actually been delivered, a better description would be underachievment. Right place right time kinda guy, would stand on the shoulders of giants claiming he's the tallest. Ambition is only a good quality in those with morals, ambitious liars end up in highest office but there legacy is usually not a positive one.

I don't think a change is brewing but we need an honest, capital discipline and actual technical person at the helm. Anyways you guys can do what you like but I will be voting against his reappontment at the AGM.

The rate of drilling since the raise has been quite frankly poor, yes there was the attempted coup to deal with but one spud in the last 6 months is not good enough. The company has benefitted from high oil and gas prices without these high prices they without doubt would have had to cap in hand back to shareholders for another funding round.

It's clear to all and sundry that they need a new drill every quarter to have the balance of averages because even the majors have wells that disappoint, if they do not have a drilling program (which appears the case right now) we will forever be at the mercy of the next drill. The company needs at least 1200 boepd cushion spread across multiple wells for when oil returns to lower levels in 2024, remember Heywood said the first couple of wells would deliver 1500 boepd, we are currently sat at just over 600 if there haven't been declines. With only WRB-1 the only known target.

The BOD need to get their finger out the clock is ticking, the market likes clarity, so it needs a drilling program timetable. So far only prices have kept this board afloat they have unilaterally failed to deliver what has been outlined previously and the radio silence and constant dilution is only getting shareholders triggered.