Loan Facility & Related Party Transactions
Summary by AI BETAClose X
29 January 2026
Block Energy plc
("Block" or the "Company")
Secured Loan Facility & Related Party Transactions
Block Energy plc, the production and development company focused on Georgia, announces an extension to the Term of its existing $2.0 million senior secured loan facility (the "Loan" or the "Loan Facility").
Loan Facility:
The Loan Facility was originally announced in February 2023 and upsized to $2.0 million in May 2023. The original 18-month Term was extended by a further 18 months in July 2024 to February 2026.
The Loan Facility has now been extended for a further 18 months to 2 August 2027 on materially the same terms.
The extension provides the Company with continued balance sheet flexibility to support its working capital position as it continues to develop its high-impact strategic initiatives, including Projects III and IV and the CCS project.
Warrants
In connection with the extension, each lender will receive warrants ("New Warrants") exercisable at any point up until 2 February 2029.The exercise price of each warrant is 1.20 pence per ordinary share being the closing bid price on 28 January 2026. The number of New Warrants to be issued to each lender shall correspond to an exercise value equal to 50% of their respective loan commitment under the Loan Facility. Accordingly, the total number of New Warrants to be issued pursuant to this extension is 60,386,474.
The 44,682,643 warrants issued in connection with the February 2023 and May 2023 first and second tranches of the Loan (with exercise prices of 1.7p and 1.92p per share) will expire on 2 February 2026.
No fees or commissions were paid by the Company in connection with the extension of the Loan.
Related Party Transactions
Paul Haywood, Chief Executive Officer, has previously lent $115,000 to the Company under the Loan Facility (as announced February 2023). Fergus Robson, who was until November 2025 a director of various subsidiaries of the Company has previously lent $20,000 under the Loan Facility.
As a result of the amended Loan agreement, Paul Haywood will receive 3,472,222 New Warrants and Fergus Robson 603,865 New Warrants.
The Independent Directors (being Jeremy Asher and Philip Dimmock), having consulted with SPARK Advisory Partners Limited, the Company's nominated adviser, consider the terms of the amended Loan Facility, insofar as it relates to the participation of the related parties, to be fair and reasonable as far as shareholders are concerned.
Exercise of Options
The Company also announces that 4,096,347 ordinary shares of £0.01 each ("Ordinary Shares") have been allotted to a former employee, following an exercise of nil-cost share options granted under the Capital Structure Simplification as set out in the RNS dated 14 November 2025.
Application will be made for the admission to trading on AIM ("Admission") for the 4,096,347 new Ordinary Shares, which will rank pari passu in all respects with the Company's existing ordinary shares. Admission is expected to occur at 8.00 a.m. on or around 3 February 2026.
Total Voting Rights
Following Admission, the Company's issued share capital will comprise 1,015,743,839 ordinary shares, each carrying one voting right. The Company does not hold any shares in Treasury, therefore the total number of voting rights in the Company is 1,015,743,839.
This figure may be used by shareholders as the denominator for the calculations by which they may determine whether they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
Commenting, Phil Dimmock, Chairman of Block Energy plc, said:
"We are pleased with the continued support the Lenders have shown the Company as it works towards several major milestones, including advancing the Project III farm-out and continued development of the CCS project. The extension provides additional financial flexibility as we remain focused on delivering sustainable growth and long-term value for our shareholders."
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:
|
Paul Haywood (Chief Executive Officer) |
Block Energy plc
|
Tel: +44 (0)20 3468 9891 |
|
Neil Baldwin (Nominated Adviser) |
Spark Advisory Partners Limited |
Tel: +44 (0)20 3368 3554 |
|
Peter Krens (Corporate Broker) |
Tennyson Securities |
Tel: +44 (0)20 7186 9030 |
|
Mark Antelme Philip Dennis Kathleen Beams (Financial PR Adviser) |
Celicourt Communications |
Tel: +44 (0)20 7770 6424 |
Notes to editors
Block Energy plc is an AIM quoted independent oil and gas production and development company with a strategic focus on unlocking the energy potential of Georgia. With interests in seven Production Sharing Contracts in central Georgia, covering an area of 4,256 km2, including the XIB licence which has over 2.77TCF of 2C contingent gas resources, with an estimated Net Present Value 10 ("NPV") of USD 1.65 billion, in the Patardzueli-Samgori, Rustavi and Teleti fields. (Source: IER, OPC 2024 & Internal estimates).
The Company has structured its operations around a four-project strategy, progressed predominantly through partner funding alongside cash flow from existing producing assets. These projects, characterized by development stage, hydrocarbon type, and reservoir, are pursued concurrently to achieve multiple objectives. This includes increasing existing production, redeveloping fields, discovering new oil and gas deposits, and capitalizing on the substantial, yet untapped, gas resource across its licences. The goal is to deliver on multi TCF gas assets, strategically well located for the key EU market, supported by partner funding and cash from existing producing assets.
Located near the Georgian capital of Tbilisi, Block Energy is well-positioned to contribute significantly to the region's energy landscape. This proximity facilitates seamless operations and underscores our commitment to the economic and energy development of Georgia.
Notification and public disclosure of transactions by persons discharging managerial responsibilities ("PDMRs") and persons closely associated ("PCA") with them.
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1 |
Details of the person discharging managerial responsibilities / person closely associated |
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a) |
Name |
Paul Haywood |
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2 |
Reason for notification |
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a) |
Position / status |
CEO |
||||
|
b) |
Initial notification /Amendment |
Initial notification |
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|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
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a) |
Name |
Block Energy plc |
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|
b) |
LEI |
213800E2J8QA1J6KN415 |
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4 |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
|||||
|
a) |
Description of the financial instrument, type of instrument Identification code |
Issue of warrants to acquire ordinary shares in Block Energy plc ISIN GB00BF3TBT48 |
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b) |
Nature of the transaction |
Grant of New Warrants in relation to amendment to Loan Facility agreement |
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c) |
Price(s) and volumes(s) |
|
||||
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d) |
Aggregated information |
n/a |
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e) |
Date of the transaction |
29 January 2026 |
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f) |
Place of the transaction |
Outside a trading venue |
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