Block Energy P. Regulatory News (BLOE)

31 August 2023 

Block Energy plc

("Block" or the "Company")

Successful Completion of Drilling Operations on well WR-34Z

Block Energy plc, the development and production company focused on Georgia, is pleased to announce that well WR-34Z has reached total depth ("TD") and drilling operations have ceased. Testing of the well will commence shortly following completion of the well.

Drilling operations were successfully undertaken by Block's in-house operating team, without incident, on time and within budget.

The drilling of well WR-34Z follows on from two successful wells, JKT-01Z and WR-B01Za, which have significantly enhanced the Company's production profile. As with these wells, WR-34Z is a low-cost side-track hole drilled from an existing donor well. The well horizontally tracks the upper part of the Middle Eocene formation to maximise well productivity by maximising exposure of the wellbore to productive fractures.

Well WR-34Z is the Company's third Project I well out of five planned wells developing the Krtsanisi anticline area of the West Rustavi-Krtsanisi field. ERCE, the Company's reserve auditor, has attributed gross 3P reserves of 3.01 MMbbl, with a net present value of USD 57.0 MM to this area. Internal estimates ascribe 27.5 MMbbls of 3C Contingent Resources to the entire Project I West Rustavi-Krtsanisi full field development.

Block Energy plc's Chief Executive Officer, Paul Haywood, said:

"We are encouraged by progress to date on well WR-34Z, with drilling operations having successfully gone to plan. The well will now be tested before being brought into production alongside the other two successful Project I wells. I would like to thank our in-house operations team and subsurface team for all their hard work, which has again ensured this programme achieved its pre-test objectives, delivering the plan safely, on time and within budget. We look forward to providing a further update on the testing of WR-34Z soon." 

Stephen James BSc, MBA, PhD (Block's Subsurface Manager) has reviewed the reserve, resource and production information contained in this announcement. Dr James is a geoscientist with over 40 years of experience in field development and reservoir management.

 **ENDS**

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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 company focused on production and development in Georgia, applying innovative technology to realise the full potential of previously discovered fields.

Block has a 100% working interest in Georgian onshore licence blocks IX and XIB. Licence block XIB is Georgia's most productive block. During the mid-1980s, production peaked at 67,000 bopd and cumulative production reached 100 MMbbls and 80 MMbbls of oil from the Patardzeuli and Samgori fields, respectively. The remaining 2P reserves across block XIB are 64 MMboe, comprising 2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe. (Source: CPR Bayphase Limited: 1 July 2015). Additionally, following an internal technical study designed to evaluate and quantify the undrained oil potential of the Middle Eocene within the Patardzeuli field, the Company has estimated gross unrisked 2C contingent resources of 200 MMbbls of oil.

The Company has a 100% working interest in licence block XIF containing the West Rustavi onshore oil and gas field. Multiple wells have tested oil and gas from a range of geological horizons. The field has so far produced over 75 Mbbls of light sweet crude and has 0.9 MMbbls of gross 2P oil reserves in the Middle Eocene. It also has 38 MMbbls of gross unrisked 2C contingent resources of oil and 608 Bcf of gross unrisked 2C contingent resources of gas in the Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1 January 2018).

Block also holds 100% and 90% working interests respectively in the onshore oil producing Norio and Satskhenisi fields.

The Company offers a clear entry point for investors to gain exposure to Georgia's growing economy and the strong regional demand for oil and gas.

Glossary

· bbls: barrels. A barrel is 35 imperial gallons.

· Bcf: billion cubic feet.

· boe: barrels of oil equivalent.

· boepd: barrels of oil equivalent per day.

· bopd: barrels of oil per day.

· Mbbls: thousand barrels.

· Mboe: thousand barrels of oil equivalent.

· Mcf: thousand cubic feet.

· MD: measured depth.

· MMbbls: million barrels.

· MMboe: million barrels of oil equivalent.

· MMcf: million cubic feet.

· TVD: True Vertical Depth.

· Project I, Phase I: Project I is the development of the Middle Eocene reservoir of the West Rustavi-Krtsanisi field. Phase I is targeting a 5-well programme on the Krtsanisi Anticline zone. It is the first programme of 8 development zones identified.