Member Info for Spudsoil

Happy with the update. Farmouts progressing, perhaps IV ahead of III given the extra detail shared. Give this 12months and things could be juicy. Delighted to hear we are drilling again. All taking way longer than I’d like but made my peace with that.

Wouldn’t be surprised if we had an RNS tomorrow. 19 trades quite a bit for little old Bloe!

Hey Bobby is that a new comment from Indorama?

Reckon there’ll be an update soon. They’ve tweeted a few times recently which is normally a sign an update is coming

RNS today makes for a good read and demonstrates the amount of work that has gone in to the project to date, with all results either achieving or exceeding expectations. Excited to get the next update - ‘mid year’ is what they are targeting for the injection so not long to wait.

Have read the report in full. There is clearly a lot of activity happening behind the scenes. should be a news rich period over the next few months. Like the idea of project 1 keeping is ticking over and potentially paying off the debt. And the gas timeline should be attractive to potential investors.

Strong write up by Tennyson. 4.9p target price.

Thanks for sharing. This does tell me stuff I didn’t know. 1. They haven’t found a partner for the gas, yet. Bit disappointed as had hoped they may be in negotiations, which by the tone of this interview, they aren’t.

2. Offsetting that disappointment is news of the scale of the project, and the multiple tests they have run. I wasn’t aware of this, maybe I’ve missed the update in previous rns’s - all sounds promising, as does the net back rate.

3. Based on the size, the fact they haven’t found a partner is maybe less surprising. The scale of investment needed is significant and my assumption here is that until the geopolitical situation calms down in and around Georgia, would be investors are perhaps biding their time. That said, O&G normally trumps geopolitical stuff so hopefully we’ll get a partner soon.

So much that is potentially happening behind closed doors, we know little at present. No news for O&G companies on AIM means the SP normally drifts lower. That’s happened here. We know we will get news soon, but none the wiser as to how significant (good or bad) it may be. The fact we have multiple projects underway means bad news will be cushioned, and I’d hope will lead to any positive updates becoming turbo charged as existing and new investors realise that if the company can deliver on one of its projects that helps increase the chances of success of the other projects (reputation, financing, connections, sentiment etc.).

The pace is not as quick as some would like, me included, but I do expect to receive an ops update before year end. I’d be disappointed if we are waiting in to the new year.

The optimal geology of the Patardzeuli-Samgori reservoir, which the OPC study indicates is accessible to proven sequestration technology, and the proximity of the Rustavi Azot facility offer the conditions for one of the lowest cost carbon sequestration projects in Europe. The project supports both partners' long-term commitment to sustainability.

Commenting, Paul Haywood, Block Energy Chief Executive Officer said:

'We're delighted to enter into an MoU with Rustavi Azot, and now look forward to forming technical and commercial teams to progress this highly prospective CCS project.

With EU Emissions Trading Scheme ("ETS") prices at around USD 60/ton, the agreement is a significant step forward to developing a commercial pathway toward project development. With upstream and downstream synergies critical for any CCS project, brownfield infrastructure available for re-use, and the conditions for low-cost proven technology, we are excited to see this project develop and look forward to updating shareholders in due course.'

Commenting, Mr. Jay Prakash Jajoo, General Director of JSC Rustavi Azot said:

'Indorama is pleased to enter into this MoU with Block Energy to pilot CCS. We are excited to serve our key markets with products having lower CO2 footprints in our commitment towards reducing carbon emissions

This was RNS’d 31st July;

Stage 2 studies, with the aim of developing a costed engineering solution and commercialisation strategy, of a pilot CO2 injection scheme are progressing well.

- The studies are expected to take approximately 14 weeks, after which the Company will be in a position, subject to agreements on cost sharing, to undertake injection of CO2 on its storage project.

14 weeks from end-July was last week. Whilst the timeline is approximate and may trigger (lengthy) contract negotiations after the study period finishes, I’d expect an update of sorts soon. Either: ‘we’ve studied, it’s not commercial, project ends’. Or ‘we’ve studied, we think it is commercial and are now working with indorama on next steps’.

Short term you’d think the stability of the existing government staying in power would benefit Block. Longer term likely the opposite.

Having done the research I’m thinking the best route to monetise the CCS will be a JV with Rustavi Azot and then wait for the CCS market to mature and get in to M&A mode. There will be tons of consolidation over next few years I suspect. In my earlier post I mis-spelt. I was trying to say there appears to be very little activity in the geography in and around Georgia compared to other parts of the world. So if we can make a success of it there should be plenty of interest from the big O&G players, of which there are plenty in the region.

What I’m not clear on yet, and I’ll do some further research, is how economical (or uneconomical) the transport phase of CCS is. For our gas project that isn’t an issue, but from how far away geographically will our CCS plant be of interest. If anyone has done research on this please do share. There’s obviously different methods of transportation and that bit feels like the key to unlocking the demand, once we’ve proved we can operate a CCS system.

Apologies, correction to point 2 - it’s 0.075% - so almost 1/1000 of global storage, and that’s only the initial rate.

The overall capacity is gigantic - whether all that gets used is not that relevant, we just need to become a recognised player in the region - it many other projects listed in the area.

Https://www.globalccsinstitute.com/wp-content/uploads/2024/10/2024-GSR_20241015.pdf

Have been doing some research on CCS - link is to a comprehensive annual report on the topic. Interesting background reading, and the market is growing exponentially.

2 things stood out for me:

1. Slightly disappointed not to see Block listed in the list of projects. I’d have hoped we’d be sitting in the early development category. I think it this report documents all known projects underway, so hopefully we’ll make an entry in the 2025 report once our initial analysis completes.

2. Our initial injection rate is proposed at 0.1-0.3 MT. The upper end of that projection would see us contribute around 0.75% of global storage (and that’s based on all projects - those in development phases and operational) so the potential is obvious to see.

We just need to execute the delivery now. We are definitely in early enough to benefit from continuing exponential growth in the market.

2003?

Nothing to get excited about in terms of pending news but the production numbers for q3 that they’ve included are superb. The work overs are clearly working! Profit is profit and given they’ve done no new drilling and are paying out interest costs on the loan I’m pleased with the numbers. They are clearly getting to a place where they understand the geography better and making tactical decisions to improve production, all whilst we wait for the big news to drop.

How do you know this? What is your source?

Guaranteed news in the next 6 working days. 23 HY results included no post period events, 22HY had a fairly detailed post period update. With all the news we’ve got in the pipeline here’s hoping we get some

Snippets with the 24HY but to temper expectations much of the pending news is likely to be significant so it may be we have to sit tight and wait it out

We have news due on 3 fronts over the short to medium term - project 3 farm out; project 4 farm out; CCS. Project 1 and 2 are primed and ready and also potentially subject to investment from outside sources.

Not bad for an O&G AIM company. Multiple opportunities to enhance shareholder value. We’ve said it before on here, but roll the clock on 12 months - realistically by then we’ll have a conclusion on 3 and CCS, if there hasn’t been a conclusion then it’s unlikely to be good news. Project 4 outside of our control and no timescales set for that one that I’ve seen published. Either way, next few months are going to get interesting.