Block Energy PLC Publication of Research Note
December 05 2018 - 4:30AM
RNS Non-Regulatory
TIDMBLOE
Block Energy PLC
05 December 2018
Block Energy Plc / Index: AIM / Epic: BLOE.L / Sector: Oil and
Gas
5 December 2018
Block Energy Plc ("the Company", "Block" or "the Group")
Publication of Research Note
Block Energy Plc, the exploration and production company focused
on the Republic of Georgia, is pleased to announce the publication
of an analyst report by Novum Securities Ltd. A copy of the report
can be found on the Company's website at
http://www.blockenergy.co.uk/investors/company-reports/.
**ENDS**
For further information visit www.blockenergy.co.uk or
contact:
Paul Haywood Block Energy Plc Tel: +44 (0) 20
Chief Executive Officer 3053 3631
Neil Baldwin Spark Advisory Partners Tel: +44 (0) 203
(Nominated Adviser) Limited 368 3554
Craig Fraser Baden Hill, a trading Tel: +44 (0) 20
(Joint Corporate Broker) name of Northland Capital 7933 8731
Partners ltd.
Colin Rowbury Novum Securities Ltd Tel: +44 (0)207
(Joint Corporate Broker) 399 9427
Frank Buhagiar / Juliet St Brides Partners Ltd Tel: +44 (0) 20
Earl 7236 1177
(Financial PR)
Notes:
Block Energy (BLOE.L) is an AIM quoted 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. Block's three
licences lie in the heart of the Schlumberger's 100% held position
in the 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 estimated net proven oil reserves of
1.5 million barrels plus 61 million barrels unrisked contingent oil
resources ('2C'). Furthermore, the West Rustavi permit has
estimated gross unrisked contingent gas resources (2C) of 608 BCF.
Multiple gas discoveries have already been made in the Lower
Eocence and Upper Cretaceous within the Licence and lie on trend
with 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). Appraisal
of the West Rustavi gas discovery is due to take place in H1
2019.
Appraisal of West Rustavi gas prospects is expected to be
conducted contemporaneously with the rehabilitation of the
producing Norio (100% WI) and Satskhenisi fields (90% WI) which
provide immediate production uplift on commencement of field
operations in Q1 2019. 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, and then to utilise cash flow
from production to drill new horizontal wells and sidetracks to
raise production to c.2,000 bopd over the medium term. Oil
production across the fields offer 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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