Block Energy P. Regulatory News (BLOE)

24 June 2021

Block Energy plc

("Block Energy", "Block" or the "Company")

Spud of WR-B1 well in Georgia

Block Energy plc, the development and production company focused on Georgia, is pleased to announce the spudding of the WR-B1 well at WR-BA location on the Company's West Rustavi field on 23 June 2021. The well will target the West Rustavi Middle Eocene reservoir with a horizontal section approximately 800 metres long and completed with a production packer and a slotted horizontal liner fitted with external swellable packers to provide water shut off capability. WR-B1 will target 2.1 MMboe of recoverable oil and gas and be the first well to be drilled using the data from the 3D-seismic survey acquired over the West Rustavi licence area in 2019. If the well is successful, WR-B1 will be rapidly tied into Block's Early Production Facility, processing both oil and gas produced from the well.

Drilling preparation

In preparation of drilling WR-B1, the Block Energy drilling team, in collaboration with the Baker Hughes reservoir technical services team, conducted a geomechanical study to de-risk potential operational challenges. To ensure safe wellbore construction, particular attention has been paid to drilling fluids and cementing design due to potential faults and fractures. The well placement has been optimised to maximise hydrocarbon recovery and the time to drill and the execution risk have been optimised with detailed engineering. Rotary steerable systems and logging-while-drilling will be deployed, which are firsts in Georgia. The drilling results are expected to strengthen the Company's understanding of the Middle Eocene, bolstering its design of a full field development plan.

Future drilling

Future drilling will incorporate results and lessons learned from WR-B1. Technical well planning and engineering screening of several well candidates are in advanced stages. Block is committed to adding significant production to its operations through a combination of new wells and re-entry and side-track of existing wells.

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

"I am very excited to have commenced our latest drilling campaign in Georgia with the spudding of WR-B1 on our West Rustavi field. The team has worked systematically and tirelessly in preparation of drilling this well, using the latest 3D-seismic technology to pinpoint its location. In addition, we will employ the latest directional drilling technologies to optimise the outcome of this well. On success, the WR-B1 well will be rapidly tied into our production facilities and significantly boost our production in Georgia. I look forward to updating the market further as we progress.

**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. Bcf: billion cubic feet.

3. boe: barrels of oil equivalent.

4. boepd: barrels of oil equivalent per day.

5. bopd: barrels of oil per day.

6. Mbbls: thousand barrels.

7. MMbbls: million barrels.

8. MMboe: million barrels of oil equivalent.