Business
Major acq'n of 2 adjacent blocks from Schlumberger
Major acq'n of 2 adjacent blocks from Schlumberger.
About this update from Block Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 6827H\n Block Energy PLC\n 26 March 2020\n \n \n \n 26 March 2020\n Block Energy Plc\n (\"Block\" or the \"Company\")\n MAJOR ACQUISITION OF TWO ADJACENT BLOCKS FROM SCHLUMBERGER\n Block Energy Plc, the exploration and production company focused on Georgia, is pleased to announce that it has entered into a sale and purchase agreement (\"SPA\") with Schlumberger B.V. (\"Schlumberger\") to acquire its subsidiary Schlumberger Rustaveli Company Limited (\"SRCL\")(\"the Acquisition\"). Of the three production sharing contracts (\"PSCs\") currently held by SRCL in Georgia, the Company will acquire producing Block XIB and exploration Block IX. It is agreed that Schlumberger will apply to relinquish Block X.\n The Acquisition significantly increases Block's access to production, reserves and resources. It represents a major milestone towards the Company's objective of becoming the leading independent oil and gas producer in Georgia. Completion of the Acquisition is conditional upon regulatory approvals in Georgia and the United Kingdom.\n Highlights\n \n · No cash consideration. Instead, options over Block's share capital for the Acquisition conserves the Company's cash reserves.\n \n · Acquisition of producing Block XIB (615 km2) and exploration Block IX (1,925 km2). Block XIB is Georgia's most productive block, with over 180 million bbls of oil produced from the Middle Eocene, peaking in the mid-1980s at 67,000 bopd.\n \n · Boosts 2P reserves of oil and gas by 64 million boe and initial production by 245 bopd.\n \n · Offers approximately 600 BCF of initial-gas-in-place in the Lower Eocene and Upper Cretaceous, following Schlumberger's recent appraisal drilling.\n \n · Increases 2C contingent resources by 29 million boe and offers significant upside potential of 245 million boe of prospective resources.\n \n · SRCL has a cost recovery pool of around US$133 million on Block XIB.\n \n · Includes oilfield materials inventory of US$1.5 million in value, estimated by Block.\n \n · Includes central production facility with storage for 36,000 barrels of oil, a workshop, a laboratory, and a compound with an office and warehouse.\n \n · The new permits share synergies with Block's existing operations.\n \n · Minimum work programme fully fulfilled on Block XIB and Block IX.\n \n · A term of 14 years remaining on ...