Block Energy increases 2023 oil and gas production, progresses drilling operations in Georgia

May 27, 2024

(WO) – Block Energy plc, the development and production company focused on Georgia, announced its audited results for 2023.

Source: Block Energy

Block reported that it made good progress in executing its four Project strategy by delivering 299,824 operational man-hours with one Lost Time Incident (“LTI”); (2022: 382,542 with no LTIs).

The company also significantly increased EBITDA to $1,469,000 from $158,000. Additionally, Block reduced cost of sales and administrative costs (excluding depreciation and depletion) in the year from 2022 by $549,000.

In 2023, the company maintained a disciplined approach to capital allocation across the company’s portfolio and successfully and safely drilled wells WR-B01Za and WR-34Z.

Block also increased oil production to 151,184 bbls and gas production to 283 MMcf, resulting in an average daily production rate of 543 boed. Additionally, the company raised $2 million via a secured loan to undertake drilling operations on Project I and completed the Project IV farm-out, achieving a carried work program valued at over $3 million (gross).

Block also reported that it completed the internal evaluation of Project III, covering the Patardzueli-Samgori, Rustavi and Teleti fields at Lower Eocene and Upper Cretaceous level. This work was subsequently (on the Patardzueli-Samgori field) audited to Petroleum Resource Management System (“PRMS”) standards by a leading technical consulting firm and forms the basis for the farm-out campaign.

In 2023, Block also signed a Memorandum of Understanding with the Ministry of Economy and Sustainability covering, amongst other items, the strategic importance of Project III.

Block Energy plc’s Chief Executive Officer, Paul Haywood, said, “2023 stands out as a pivotal year for our Company. Bolstered by solid production, a focus on costs and a supportive oil price environment, we have seen a strong improvement in our financial position. We were also able to focus on advancing our high impact projects, in particular Project III, and the generation and independent verification of a carbon capture storage (“CCS”) project.

As we look forward, we’re excited about the company’s prospects. The farmout of Project III is already underway and we’re seeing continued momentum in developing Projects II and IV, supported by production and cashflows from Project I and disciplined capital management. The company remains cashflow positive and financially stable at current oil prices and production levels, and I look forward to continuing to deliver on our objectives throughout 2024”.

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