Block Energy PLC · LSE:BLOE
Block Energy — Investor Presentation (April 2021)
23 slides from Block Energy's investor presentation, April 2021
Slide 1: Corporate Presentation April 2021
“Production and development in an emerging hydrocarbon region” Corporate Presentation April 2021 Block Energy Plc | 2021
Slide 2: Disclaimer
Disclaimer This document has been prepared and issued by and is the sole responsibility of Block Energy Plc (the “Company”) and its subsidiaries. It comprises the written materials for a presentation to investors and/or industry professionals concerning the Company’s business activities. By attendin
Slide 3: Executive Summary
Executive Summary HYDROCARBON LICENCE MAP OF GEORGIA COMPANY OVERVIEW • Block Energy is an AIM-listed independent oil and gas exploration and production company with a significant portfolio of cash generating assets and production led growth 200 km opportunities • In late 2020, Block completed the t
Slide 4: Block Energy's Board
Block Energy’s Board Philip Dimmock Paul Haywood Non-Executive Chairman Chief Executive Officer Philip’s roles in BP included Manager Forties. Paul has more than 10 years experience in the He was VP International at Ranger/CNRL and Georgian oil and gas sector and investment VP Operations at Vanco. P
Slide 5: History
History • Since its IPO in 2018, Block has significantly increased its foothold in Georgia increasing both its production and acreage position Pre Feed BTC tie back complete Commercial / M&A Increased working interest Agree Gas sales contract Agree asset acquisition of Completed producing assets in
Slide 6: Production Event Led Growth Opportunities
Production Event Led Growth Opportunities Block has a three independent strategies for significant Company Production Build in 2021 (2-Well 2021 Program) production growth across its acreage in Georgia 2,000 West Rustavi Drilling Programme 1,500 WR-16aZ WO • The first two wells of Block’s campaign a
Slide 7: Transformational Schlumberger Georgia Acquisition
Transformational Schlumberger Georgia Acquisition BLOCK ENERGY LICENCES AND SCHLUMBERGER BLOCK XIB A Transformational Transaction for Block Energy • Increases the company’s base production to +500boepd providing a robust platform for growth. • Significant uplift in 2P Reserves (> 60mm BOE) and 2C Co
Slide 8: Rustavi Area (XIB/XIF) Integration
Rustavi Area (XIB/XIF) Integration • Initial operations will focus on combining Block Energy & Schlumberger production centred on the Rustavi area RUS-BA: JKT-01st horizontal Rustavi -2 step out; Early Production Facility; side-track; production new horizontal First gas Q1 2021 well WR-38Z & new WR-
Slide 9: Lessons Learned from Recent West Rustavi Drilling and 3D Seismic
Lessons Learned from Recent West Rustavi Drilling and 3D Seismic • Well integrity issues associated with the Soviet well stock compromises operational performance • 3D seismic acquired in 2019, provides significant insights into reservoir quality & structure enabling optimisation of well positioning
Slide 10: 1st Well in Campaign - West Rustavi WR-BA
1st Well in Campaign- West Rustavi WR-BA PROPOSED WELL LOCATION & TRAJECTORY OBJECTIVES • Targeting the West Rustavi Middle Eocene fractured tuff reservoir, tied W E into the field EPF. Top Mid • First well in West Rustavi planned on a 3D seismic survey. Eocene • The horizontal section is planned to
Slide 11: Large Upside Identified in Patardzeuli Field
Large Upside Identified in Patardzeuli Field PATARDZEULI FIELD HISTORIC PRODUCTION 70,000 • Field developed with 1970’s Soviet technology & philosophy 60,000 • vertical wells, poor placement & completion • drilled “blind” – limited understanding of fracture distribution 50,000 Oil Rate (bopd) Soviet
Slide 12: Eocene Basin-wide Gas Potential
Eocene Basin-wide Gas Potential Top Middle Eocene Structure PAT-E1 PAT-E1st • Proven Lower Eocene Gas in Sam-Pat • Proven Lower Eocene gas • Multi-TCF resource potential (>8 TCF) identified prospectivity in Samgori & in Middle Eocene by Block associates within and Patardzeuli around Block licences •
Slide 13: Drilling Programme Summary
Drilling Programme Summary 1 WR-BA WR-BB JKT-1 Sidetrack Rustavi Gas Well Patardzeuli-BA Well Patardzeuli-BB Well • New horizontal wells • Modern donor well sidetrack • Up-dip gas well targeting 5.6 • Extensive analysis of field • Wells were drilled without targeting Middle Eocene oil bcf of reserve
Slide 14: 2021-2022 Work Programme & Value Projection
2021-2022 Work Programme & Value Projection PAT-BB $44.6 JKT-1st PAT-BA $ = million NPV $20.3 RUS-BA $29.9 WR-BB WR-BA West Rustavi $8.1 First Gas $15.3 Base production1 $18.9 $18.2 EPF 3.5 3.75 CAPEX 3 3 3 ($mm) 2.2 2020 2021 2022 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Block Energy Plc | 2021 14 Base productio
Slide 15: Appendix: Reserves & Resource Management
Reserves & Resource Management APPENDIX Block Energy Plc | 2021 15
Slide 16: Phase & Production Profiles
Phase 1 & 2 Production Profiles 7,000 6,000 PAT-BB 5,000 Daily Rate (boepd) JKT1-ST 4,000 RUS-BA 3,000 PAT-BA 2,000 WR-BB 1,000 WR-BA 0 Base Jan-21 Jul-21 Jan-22 Jul-22 Block Energy Plc | 2021 16
Slide 17: XIB Gas Development
XIB Gas Development • To commence with re-entry and horizontal side track of the PAT-E1 discovery • 600 BCF (P50) 1TCF (P10) identified by Schlumberger across Block XIB Block Energy Plc | 2021 17
Slide 18: JKT-1st
JKT-1st PROPOSED WELL LOCATION & TRAJECTORY PROPOSED WELL LOCATION & TRAJECTORY JKT-1st 2.5 km NNW SSE Dip-azimuth lineations Top Mid Eocene Faults JKT-1st KRT-39 Fault buffer zone Dip-azimuth seismic attribute WELL PRODUCTION PROFILE1 OBJECTIVES 600 1.4 • Re-entry and side-track of JKT-1 will targe
Slide 19: West Rustavi WR-BB
West Rustavi WR-BB PROPOSED WELL LOCATION & TRAJECTORY OBJECTIVE E • To provide an oil & gas production well in the West Rustavi Middle W Eocene reservoir, to be tied into the EPF. Top Mid Eocene • WR-BB is planned to drill a 375 m long horizontal hole section completed with a slotted liner and exte
Slide 20: Rustavi RUS-BA
Rustavi RUS-BA PROPOSED WELL LOCATION & TRAJECTORY OBJECTIVE NW RUS-BA RUS-02 SE • Targeting Middle Eocene gas, tied into the Bago gas processing facility. • RUS-BA will be drilled up-dip from the RUS-02 that produced significant gas volumes. A 500 m long inclined hole section will be drilled & comp
Slide 21: Patardzeuli PAT-BA
Patardzeuli PAT-BA PROPOSED WELL LOCATION & TRAJECTORY OBJECTIVE NW SE • Evaluate behind pipe resource potential identified in the Patardzeuli field Middle Eocene reservoir. The well will become an oil producer if successful. • PAT-BA will be deviated at an angle of 30o- 60o against the dominant loc
Slide 22: Patardzeuli PAT-BB
Patardzeuli PAT-BB PROPOSED WELL LOCATION & TRAJECTORY OBJECTIVE NW PAT-E1 SE • Targeting unswept / untested resource volumes identified in the Patardzeuli field Middle Eocene reservoir. Planned as a producer. • PAT-BB will be drilled through the reservoir at 45o to the SE guided by PAT-E1 high reso
Slide 23: Abbreviations & Mnemonics
Abbreviations & Mnemonics mm million PVT Pressure Volume Test bbl barrels CAPEX Capital expenditure MMstb million stock tank barrels OPEX Operating expenditure bopd barrels of oil per day NPV Net Present Value boe barrels of oil equivalent NPV1O Net present value at 10% discount rate BOEPD Barrels o