Block Energy P. Regulatory News (BLOE)

26 August 2025

Block Energy plc

("Block" or the "Company")

Carbon Capture Storage CO2 Pilot Injection

Block Energy plc, the development and production company focused on Georgia, is pleased to announce that it has completed its initial injection of CO2 as part of the Carbon Capture Storage ("CCS") project.

Highlights:

· CO2 injection operations were successfully and safely executed.

· Liquid CO2 was delivered to the wellsite by Block's partner on the pilot study, Rustavi Azot (a subsidiary of Indorama Corporation) and injected in solution with water.

· Previous work has confirmed connectivity between the injector well (PAT-49) and the four monitoring wells (PAT-15, PAT-92, PAT-95 and PAT-139).

· No CO2 leakage on surface was detected following the injection.

· Comprehensive monitoring and verification programme in place with the aim of proving mineralisation of CO2 in the reservoir.

· First successful pilot test of its kind in the broader Eastern European region.

· Provides pathway to project commercialisation opportunities.

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

"We are proud to have delivered the region's first successful CO2 mineralisation injection pilot, having done so through our own cash resources. This represents an important milestone for Block, Georgia and our partner on the pilot project, Indorama, as we seek to demonstrate the viability of large-scale, low-cost CCS. This pilot injection paves the way for commercial engagement with industrial partners and carbon markets and we now look forward to building on this success."

Commenting, Prakash Kejriwal, Group Director of Indorama Corporation said:

"We are pleased to highlight that the first CO₂ mineralisation project in Georgia has been successfully implemented with the support of Rustavi Azot Indorama. This pilot provides valuable insights into how carbon capture and mineralisation can be applied on an industrial scale, helping reduce emissions and align with future EU carbon regulations. As one of the country's largest industrial producers, it demonstrates our potential to be at the forefront of advanced carbon management technologies while strengthening our competitiveness in global markets. This milestone also reflects Indorama Corporation's broader commitment to reducing its environmental footprint and advancing sustainable industrial practices across all our production sites worldwide."

Injection Operation:

This update is further to the announcements of 14 April 2025 and 12 August 2025. During the pilot injection, a total of 13.6 tonnes of liquid CO2 was injected into the reservoir along with 300m3 of water and sodium fluorescence tracer at pressures of 120 - 130 bar. Following data review, it is likely that injection rates will be optimised providing the potential to increase per-well injection capacity.

No CO2 was detected at surface during or immediately following the injection, with sampling occurring on the injection well and the monitoring wells prior, during and after the injection.

The original study by Oilfield Production Consultants (OPC) (2023) into the storage capacity at Patardzueli-Samgori ascribed a total volume of 151.5 Mt in the mid case. 

Pilot and Next Steps:

The successful injection of CO2 is the first mineralisation project of its kind in the broader Eastern European region and positions Block as a first-mover in the space.

A detailed monitoring and verification plan is in place and underway in which the Company will collect subsurface samples and analyse data to determine if the injected CO2 has mineralised into solid calcium carbonate (and therefore be permanently stored). Unlike 'conventional' carbon storage technology, the CO2 is converted in the reservoir through reactions in the reservoir minerals into solid rock and therefore the requirement for high-cost monitoring and verification procedures (such as 4D seismic) is not required.

Pre-injection work including subsurface rock sampling analysis, determination of pressure communication and dye tracer analysis between the injector well and the monitoring wells was completed, giving confidence in the Company's ability to determine if the CO2 has mineralised as forecast.

It is expected that it will take 4-6 months to determine if the CO2 has successfully mineralised in the reservoir and therefore proceed to the next steps in the project.

Assuming that mineralisation is proven from the pilot, then this will provide a credible and tangible pathway to commercialisation opportunities through third-party verification and a solution to carbon emissions reduction within Georgia and potentially the wider region.

Commercial efforts are currently focused on direct air capture technologies as well as engagement with industrial emitters seeking carbon reduction solutions, including in response to the EU's upcoming Carbon Border Adjustment Mechanism. Georgia and the EU have a zero-tariff free-trade agreement in place, offering additional opportunities to this route.

Work is ongoing on commercialisation options, including discussions with Indorama Corporation, as well as work on field scale development scenarios.

**ENDS**

For further information please visit http://www.blockenergy.co.uk/ or contact:

Notes to editors

Block Energy plc is an AIM quoted independent oil and gas production and development company with a strategic focus on unlocking the energy potential of Georgia. With interests in seven Production Sharing Contracts in central Georgia, covering an area of 4,256 km2, including the XIB licence which has over 2.77TCF of 2C contingent gas resources, with an estimated Net Present Value 10 ("NPV") of USD 1.65 billion, in the Patardzueli-Samgori, Rustavi and Teleti fields. (Source: IER, OPC 2024 & Internal estimates).

The Company has structured its operations around a four-project strategy. These projects, characterized by development stage, hydrocarbon type, and reservoir, are pursued concurrently to achieve multiple objectives. This includes increasing existing production, redeveloping fields, discovering new oil and gas deposits, and capitalizing on the substantial, yet untapped, gas resource across its licences. The goal is to deliver on multi TCF gas assets, strategically well located for the key EU market, supported by partner funding and cash from existing producing assets.

Located near the Georgian capital of Tbilisi, Block Energy is well-positioned to contribute significantly to the region's energy landscape. This proximity facilitates seamless operations and underscores our commitment to the economic and energy development of Georgia.