Business
Trading Statement
Trading Statement.
About this update from Block Energy Plc
[{"type":"text","content":"\n\n \n31 July 2024\n \nBlock Energy plc\n(\"Block\" or the \"Company\")\nTrading Update\nSecured Loan Facility & Related Party Transactions\n \nBlock Energy plc, the production and development company focused on Georgia, is pleased to provide the following trading update and announces the extension of its current $2.0 million senior secured loan (\"Loan\") on substantially similar terms to those previously announced on 12 May 2023.\nAsset Performance:\n- Production has performed above forecast and the Company's average production rate for July 2024 was 534 boepd, primarily driven by good performance from Project I wells.\n- The restructure which commenced in January 2024 was completed, resulting in efficiencies across the Georgian cost base at the end of Q1 2024.\n- The Company has remained cashflow positive throughout 2024.\n- Operations continue safely.\nProject I Update:\n- Production has remained robust from Project I, with select operational investments undertaken to maximise netbacks.\n- Significant engineering work on drilling technologies has been undertaken which potentially provide material savings on single well capex requirements and expand the Company's suite of available donor wells for sidetracks.\n- The Company remains ready to drill additional Project I wells when appropriate to ensure that cashflow remains positive and it can effectively execute its four project strategy.\nProject II Update:\n- A technical review of the existing well stock and workover proposals from an engineering and subsurface perspective aimed at increasing incremental oil production from Project II has been completed.\n- The Company is studying various technologies for enhanced oil recovery on the Patardzueli field including water shut-off, infill drilling, jet drilling and polymer flood amongst other alternatives. These studies involve discussions with a range of vendors and potential investors around providing capital and or services for these programmes.\nProject III Update:\n- The farm-out process, led by LAB Energy, continues to attract interest with multiple parties entering the data room.\n- As discussions with potential partners continue, the Company looks forward to updati...