Block Energy PLC Oil Capital Conference Presentation

TIDMBLOE

Block Energy PLC

30 August 2018

Block Energy Plc / Index: AIM / Epic: BLOE.L / Sector: Oil and Gas

30 August 2018

Block Energy Plc ('the Company' or 'the Group')

Oil Capital Conference Presentation

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce that its Managing Director, Paul Haywood, will be presenting at the Oil Capital Conference on 4 September 2018 at 1:00pm. The Conference will be held at The Brewery, 52 Chiswell Street, London, EC1Y 4SD. For more information and to register attendance for the event please visit: http://www.oilcapital.com/conferences .

**ENDS**

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

 
 Paul Haywood                Block Energy Plc          Tel: +44 (0) 20 
  Executive Director                                    3053 3631 
 Neil Baldwin                Spark Advisory Partners   Tel: +44 (0) 203 
  (Nominated Adviser)         Limited                   368 3554 
 Craig Fraser                Baden Hill LLP            Tel: +44 (0) 20 
  (Joint Corporate Broker)                              7933 8731 
 Colin Rowbury               Novum Securities Ltd      Tel: +44 (0)207 
  (Joint Corporate Broker)                              399 9427 
 Frank Buhagiar / Juliet     St Brides Partners        Tel: +44 (0) 20 
  Earl                        Ltd                       7236 1177 
  (Financial PR)

Notes:

Block Energy (BLOE.L) is an AIM traded oil and gas company with a growing portfolio of production, development and exploration assets in the Republic of Georgia. Block holds a 100% Working Interest ('WI') in the producing Norio licence, a 90% WI in the producing Satskhenisi licence and a 25% WI in the West Rustavi licence with the right to farm-in to up to a 75% WI in the Licence. Block's three licences lie in the heart of the Schlumberger's 100% owned strategic position in the prolific Kura basin, which at its peak produced 70,000 barrels of oil per day ('bopd') in Georgia and is estimated to hold over 7 billion barrels of proven reserves in Azerbaijan and North Caucasus (Russia).

The licences currently hold net proven oil reserves of 1.5 million barrels plus 60 million barrels of oil and c.600 billion cubic feet ('bcf') of gas classified as 2C contingent resources. The West Rustavi permit, in which Block has just increased its stake in, has proven reserves and gross, unrisked contingent resources ('2C') of 608 BCF gas and 37.9MMBbls of oil. Multiple gas discoveries have already been made in the Lower Eocence and Upper Cretaceous within the Licence, which lie on trend to the same play currently being targeted by Schlumberger on neighbouring licence, Block XIb. The estimated cost of gas development and production at West Rustavi is c.US$2.00/Mcf which equates to operating netbacks of c.US$2.6/Mcf (assuming a 75% working interest) - Georgia currently purchases its gas for c.US$5.5 /Mcf (c.US$600m project value to the Company).

West Rustavi's development is being conducted contemporaneously with the development of the producing Norio (100% WI) and Satskhenisi licences (90% WI) which provide immediate production uplift on commencement of field operations in Q3. The near-term target is to raise production to 900 bopd from 15 bopd within 18 months via a low cost, low risk workover and sidetrack programme of existing wells, and then utilise cashflow to drill horizontal wells and sidetracks to rapidly raise production to c.2,000. Oil production on the fields offers excellent netbacks, with the current cost of production of c.US$25 per barrel providing netbacks of c. US$30-35 per barrel.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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