Business
Audited results for the 18m period ending 31 12 19
Audited results for the 18m period ending 31 12 19.
About this update from Block Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 5728L\n Block Energy PLC\n 30 April 2020\n \n \n \n 30 April 2020\n Block Energy Plc\n (\"Block Energy\" or the \"Company\")\n Audited results for the 18 months period ending 31 December 2019\n Block Energy Plc, the exploration and production company focused on Georgia, is pleased to announce its preliminary results for the 18 months period ending 31 December 2019.\n The Company's Annual Report will shortly be made available on the Company's website at www.blockenergy.co.uk and posted to shareholders by 15 May 2020.\n \n Highlights\n \n \n Equity placing\n \n \n · \n In May 2019, Block Energy Plc completed a placing of 109,090,000 new Ordinary Shares, raising approximately £12 million, equivalent to $15.2 million, (before expenses) with institutional investors at a placing price of 11 pence, equivalent to $0.14, per share.\n \n \n \n \n \n Acquisition and business growth\n \n \n · \n The Group continued to grow its portfolio of oil and gas assets in Georgia by increasing its working interest in the West Rustavi Production Sharing Contract (\"PSC\") from 25% to 100% for total cash payments of $500,000 and the issue of 12,876,268 Ordinary Shares with a value $1,000,000.\n \n \n · \n At 31 December 2019, Block Energy held three operating licences - Norio (100% working interest (\"WI\")), Satskhenisi (90% WI) and West Rustavi (100% WI).\n \n \n · \n Following the period end, on 25 March 2020, the Company entered into a conditional sale and purchase agreement with Schlumberger B.V. (\"Schlumberger\") to acquire its subsidiary Schlumberger Rustaveli Company Limited (\"SRCL\"), which on closing will hold two PSCs in Georgia.\n \n \n · \n Cash at 31 December 2019 was $6,494,000 (30 June 2018: $5,278,000).\n \n \n \n \n \n Operations\n \n \n · \n The Group successfully drilled two horizontal wells (WR-16aZ and WR-38Z) in its West Rustavi licence area. Tests from both WR-16aZ and WR-38Z showed encouraging production rates.\n \n \n · \n Gas sales agreement signed with Bago LLC, one of the largest private gas suppliers and purchasers in Georgia, for the offtake of gas produced at the Company's flagship West Rustavi field at a price of $5.24 per MCF.\n \n \n · \n Construction underway for an Early Production Facility (\"EPF\"), with capacity for 6 wells, to exploit Block Energy's contingent gas resourc...