Last checked at 11 Sep 2018 07:00
Block Energy Plc / Index: AIM / Epic: BLOE.L / Sector: Oil and Gas
11 September 2018
Block Energy Plc ('Block', 'the Company' or 'the Group')
Appointment of Company Auditor
Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce the appointment of BDO UK LLP ('BDO') as the Company's auditor with immediate effect. BDO will perform the audit of the Company's Report and Accounts for the financial year ended 30 June 2018.
A resolution to approve the appointment of BDO will be put to shareholders at the Company's next meeting of shareholders.
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
**ENDS**
For further information visit www.blockenergy.co.uk or contact:
Paul Haywood Executive Director | Block Energy Plc | Tel: +44 (0) 20 3053 3631 |
Neil Baldwin (Nominated Adviser) | Spark Advisory Partners Limited | Tel: +44 (0) 203 368 3554 |
Craig Fraser (Joint Corporate Broker) | Baden Hill LLP | Tel: +44 (0) 20 7933 8731 |
Colin Rowbury (Joint Corporate Broker) | Novum Securities Ltd | Tel: +44 (0)207 399 9427 |
Frank Buhagiar / Juliet Earl (Financial PR) | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Notes:
Block Energy (BLOE.L) is an AIM quoted oil and gas company with a growing portfolio of production, development and exploration assets in the Republic of Georgia. Block holds a 100% Working Interest ('WI') in the producing Norio licence, a 90% WI in the producing Satskhenisi licence and a 25% WI in the West Rustavi licence with the right to farm-in to up to a 75% WI. Block's three licences lie in the heart of the Schlumberger's 100% held position in the Kura basin, which at its peak produced ~70,000 barrels of oil per day ('bopd') in Georgia and is estimated to hold over 7 billion barrels of proven reserves in Azerbaijan and North Caucasus (Russia).
The licences currently hold estimated net proven oil reserves of 1.5 million barrels plus 61 million barrels unrisked contingent oil resources ('2C'). Furthermore, the West Rustavi permit has estimated gross unrisked contingent gas resources (2C) of 608 bcf. Multiple gas discoveries have already been made in the Lower Eocence and Upper Cretaceous within the Licence and lie on trend with the same play currently being targeted by Schlumberger on neighbouring licence, Block XIb. The estimated cost of gas development and production at West Rustavi is c.US$2.00/Mcf which equates to operating netbacks of c.US$2.6/Mcf (assuming a 75% working interest) - Georgia currently purchases its gas for c.US$5.5 /Mcf (c.US$600m project value to the Company).
Appraisal of West Rustavi is being conducted contemporaneously with the rehabilitation of the producing Norio (100% WI) and Satskhenisi fields (90% WI) which provide immediate production uplift on commencement of field operations in Q3. The near-term target is to raise production to 900 bopd from 15 bopd within 18 months via a low cost, low risk workover and sidetrack programme, and then to utilise the cash flow to drill horizontal wells and sidetracks to raise production to c.2,000 bopd. Oil production on the fields offers excellent netbacks, with the current cost of production of c.US$25 per barrel providing netbacks of c. US$30-35 per barrel.