Appointment of Company Auditor

RNS Number : 3139A

Block Energy PLC

11 September 2018

 

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

11 September 2018

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

Appointment of Company Auditor  

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce the appointment of BDO UK LLP ('BDO') as the Company's auditor with immediate effect.  BDO will perform the audit of the Company's Report and Accounts for the financial year ended 30 June 2018.

A resolution to approve the appointment of BDO will be put to shareholders at the Company's next meeting of shareholders.

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

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

Paul Haywood Executive Director	Block Energy Plc	Tel: [phone]
Neil Baldwin (Nominated Adviser)	Spark Advisory Partners Limited	Tel: [phone]
Craig Fraser (Joint Corporate Broker)	Baden Hill LLP	Tel: [phone]
Colin Rowbury (Joint Corporate Broker)	Novum Securities Ltd	Tel: [phone]
Frank Buhagiar / Juliet Earl (Financial PR)	St Brides Partners Ltd	Tel: [phone]

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 West Rustavi is being 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 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, and then to utilise the cash flow to drill horizontal wells and sidetracks to raise production to c.2,000 bopd.  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.

 

END

 

 

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