Block Energy P. Regulatory News (BLOE)

6 April 2023

Block Energy plc

("Block" or the "Company")

Corporate Update

Termination of Salary Sacrifice

Issue of Options and Shares and PDMR Dealing

Termination of the Salary Sacrifice Scheme

Block Energy plc, the development and production company focused on Georgia, is pleased to announce that it is terminating the Salary Sacrifice scheme as of 1st April 2023. The decision is based on the Company's improved financial position. Well WR-B01Za continues to produce naturally at an average rate of 274 boepd (247 bopd oil & 4,700 m3/d gas) without the need for artificial lift. The well result, combined with our continuing improved understanding of the reservoir gained by the calibration of our detailed geophysical studies, provides great confidence that further horizontal wells into the West Rustavi/Krtsanisi Middle Eocene reservoir will be successful and Project 1 achieved.

The Salary Sacrifice scheme was originally put in place in April 2020, following a collapse of the Brent price and operational issues due to the global Covid-19 pandemic, to preserve capital and ensure that completion and integration of the Schlumberger transaction was achieved.

Commenting, Paul Haywood, Block Energy CEO said:

"I'd like to extend a sincere thank you to all the employees and directors who participated in our salary sacrifice scheme. The scheme was put in place during the global pandemic to preserve capital and has since helped the Company in developing its strategy and undertaking capital investment in the assets. Given the latest positive well results, which support our cash position, we have decided to terminate the salary sacrifice scheme.

"Once again, a heartfelt thank you to all who participated in this important initiative."

Final Issue under the Salary Sacrifice Scheme

On 5 April 2023, the Company issued nil-cost options over a total of 3,702,501 ordinary shares of 0.25p each ("Options") to directors and employees. The Options were granted in lieu of cash payment for 40% of salaries and up to 50% of directors' fees, in accordance with the cash conservation measures announced on 7 April 2020 and subsequent agreements with the employees and non-executive directors for fees to be paid in nil-cost options in lieu of cash payment. The number of shares was calculated by dividing the amount of monthly salary or fee to be paid in Options by the volume weighted average price of the ordinary shares during the calendar month that the services were provided.

Also, pursuant to agreements to exercise options immediately upon grant, on 5 April 2023:

1. Philip Dimmock, Non-Executive Chairman, exercised nil cost options to acquire 724,602 ordinary shares of 0.25 pence each; and

2. Jeremy Asher, Non-Executive Director, exercised nil cost options to acquire 675,423 ordinary shares of 0.25 pence each.

Of the total number of Options granted, 2,097,933 Options were granted to PDMRs, as shown in the table below.

Additionally, on 5 April 2023, the Company allotted 476,388 ordinary shares of 0.25p each to two service providers in lieu of cash settlement for services provided to the Company with a total value of £4,782.93. Of such, 298,805 ordinary shares of 0.25p to a value of £3,000 were allotted to a company controlled by Ken Seymour (Block's Chief Operating Officer and a PDMR) as payment for services in March 2023.

The Company also allotted 5,613,122 shares of 0.25p each to current and former employees following the exercise of nil cost options that had been granted in lieu of cash payment for bonuses and part of salaries. These shares were settled from shares already issued to the Company's Employee Benefit Trust.

Application will be made for the admission to trading on AIM ("Admission") for the 1,876,413 ordinary shares. The ordinary shares will rank pari passu in all respects with the existing ordinary shares of the Company. Admission is expected at 8.00 a.m. on or around 13 April 2023.

Total Voting Rights

Following Admission, the Company's issued share capital will comprise 689,551,104 ordinary shares with one voting right each. As the Company does not hold any shares in Treasury, the total number of voting rights in the Company is also 689,551,104 and this figure of ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

**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-listed 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 has 2P reserves of 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. Licence block XIB is Georgia's most productive block, with historical production of over 180 MMbbls of oil from the Middle Eocene, peaking in the mid-1980s at 67,000 bopd.

The Company has a 100% working interest in licence block XIF, which contains the West Rustavi onshore oil and gas field. Multiple wells have tested oil and gas from a range of geological horizons. The field has 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.

· bopd: barrels of oil per day.

· Mbbls: thousand barrels.

· MMbbls: million barrels.

· MMboe: million barrels of oil equivalent.

Notification and public disclosure of transactions by persons discharging managerial responsibilities ("PDMRs") and persons closely associated ("PCA") with them.

Notification and public disclosure of transactions by persons discharging managerial responsibilities ("PDMRs") and persons closely associated ("PCA") with them.

Notification and public disclosure of transactions by persons discharging managerial responsibilities ("PDMRs") and persons closely associated ("PCA") with them.

Notification and public disclosure of transactions by persons discharging managerial responsibilities ("PDMRs") and persons closely associated ("PCA") with them.

Notification and public disclosure of transactions by persons discharging managerial responsibilities ("PDMRs") and persons closely associated ("PCA") with them.