Block Energy P. Regulatory News (BLOE)

12 November 2021

Block Energy plc

("Block" or the "Company")

2021 Drilling Campaign Update

Highlights

· Following the interim installation of a rod pump, WR-B1a is currently producing 50 bopd.

· The second well of the campaign, the fully-funded side-track of JKT-01, is due to spud before the end of November.

· Following intensive analysis of Block's 3D-seismic-survey, the JKT-01 horizontal hole will be drilled at a different orientation to that of WR-B1a.

· Post JKT-01, a low-cost side-track will be drilled from WR-B1a to increase production to forecast levels.

Well WR-B1a

Block Energy plc, the development and production company focused on Georgia, announces that, following the interim installation of a rod pump, well WR-B1a has produced an average of 50 bopd over the last eight days. At this rate and current oil price, WR-B1a will generate $1.0 million cash revenue to the Company per year. This is in addition to baseline production as detailed in the Q3 Operational Update (Link https://www.londonstockexchange.com/news-article/BLOE/q3-operational-update/15164242).

A rod pump was installed on WR-B1a for the clean-up operations. Following the side-track of JKT-01, downhole operations at WR-B1a will resume with a low-cost side-track from the same well bore. It will target significant fractures and faults, newly identified from attribute analysis of the 3D-seismic survey, at a higher level within the Middle Eocene reservoir. The attribute analysis has been recalibrated from the significant amounts of data acquired through drilling WR-B1a.

WR-B1a was deliberately drilled into a less fractured zone in an attempt to produce more stable oil production rates, and to minimise water production. However, this resulted in oil production also being below targeted levels, and the attribute analysis provides some possible reasons why this may have occurred. This greater understanding of the reservoir has informed the placement of the JKT-01 wellbore, in order to change the orientation to target the larger fractures observed in the attribute analysis.

Well JKT-01

Well JKT-01 side-track is fully-funded and on target to commence drilling in the second half of November. The drilling rig is on the newly refurbished wellsite, and undergoing a final planned rehabilitation before drilling operations commence. Analysis of the production data indicates that a volume of some 8 million barrels of oil is present in this area of the reservoir.

For a more detailed explanation of the lessons learnt from the drilling of WR-B1a, and how the board of directors believes they increase the chance of success at JKT-01, please see the presentation available at the following link:

https://www.voxmarkets.co.uk/articles/block-energy-discuss-their-latest-technical-drilling-update-2fb7448

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

"Well WR-B1a has not so far produced at the forecast rate, but we have leveraged the new data gathered from the well to greatly enhance the potential production rates from JKT-01 and subsequent wells. Our technical team's new attribute analysis also supports the plan to return to WR-B1a, aimed at delivering production more in-line with initial expectations. I encourage you all to watch the video by Stephen James, our in-house expert on fractured reservoirs."

Jonathan Bedford (Block's Technical Manager) has reviewed the reserve, resource and production information contained in this announcement. Mr Bedford has an MSc in Petroleum Geoscience from the University of Aberdeen and is a petrophysicist.

**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 is Georgia's most productive block, with 2P oil and gas reserves of 64 MMboe, which is comprised 2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe (Source: CPR Bayphase Limited: 1 July 2015) and historic 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 the highly prospective West Rustavi onshore oil and gas field with multiple wells that have tested oil and gas from a range of geological horizons. The field has so far produced 50 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

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

2. boe: barrels of oil equivalent.

3. bopd: barrels of oil per day.

4. Mbbls: thousand barrels.

5. MMbbls: million barrels.

6. MMboe: million barrels of oil equivalent.

7. Bcf: billion cubic feet.