Business
Raises Interest in Highly Prospective Gas Licence
Raises Interest in Highly Prospective Gas Licence.
About this update from Block Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6814S Block Energy PLC 27 June 2018 \n\nBlock Energy Plc / Index: AIM / Epic: BLOE.L / Sector: Oil and Gas\n27 June 2018\nBlock Energy Plc ('Block', 'the Company' or 'the Group')\nIncreases Stake in 608 BCF and 37.9MMBbls Georgian Licence\nIssue of Management Incentive Options and Issue of Warrants\n \nBlock Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce the acquisition of an additional 20% interest in the highly prospective 36.5 sq km West Rustavi licence ('West Rustavi' or 'the Licence') in Georgia, increasing its working interest ('WI') to 25%. \n \n· West Rustavi has proven reserves and gross, unrisked contingent resources ('2C') of 608 BCF gas and 37.9MMBbls of oil and is located in the proven and prolific Kura Basin in Georgia\n· Multiple gas discoveries have already been made in the Lower Eocence and Upper Cretaceous within the Licence, which lie on trend to the same play currently being targeted by Schlumberger on neighbouring licence, Block XIb \n· 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\n· With a netback of c.US$2.6/Mcf and conservative 50% recovery the Board believes this translates into a c.US$600m project value to the Company\n· Inspection of existing well heads at West Rustavi to commence this week, preparing for the gas re-test and side track programme\n· Drilling/re-entry of initial targets are anticipated for Q4 2018 which, if successful, will transfer a substantial amount of the Company's contingent oil and gas resources to reserves and significantly advance the gas development strategy on the Licence\n· Acquisition of the additional 20% WI has been satisfied for a cash consideration of US$500,000, and subsequent to US$1million in new ordinary shares in Block priced at 4p per share, issued at the Company's Admission to trading on AIM on the 11th June 2018. This forms part of agreement with Georgian Oil & Gas to farm-in to up to a 75% WI in the Lic...