Block Energy Plc

Strategy

Focused on growth in Georgia and Gabon

Our portfolio spans production, gas monetisation, exploration and CCS in Georgia, and offshore oil development and exploration in Gabon

Our strategy

Building value across a diversified energy portfolio

Block Energy (AIM:BLOE) is an independent energy company with a diversified portfolio across Gabon and Georgia. The Company holds a 76.5% indirect interest in two contiguous offshore licences in Gabon, alongside a portfolio of assets in Georgia spanning production, redevelopment, gas appraisal, carried exploration and Carbon Capture and Storage (CCS).

The Company’s objective is to convert resources into reserves, reserves into production and technical work into partner-funded development programmes capable of delivering material shareholder value.

Gabon

A strategic position in Gabon

The Ndjila and Mpari PSCs are located in the North Gabon Basin, a mature hydrocarbon province with excellent fiscal terms, established export infrastructure and more than 60 years of production history.

The basin continues to attract investment from international energy companies, including recent commitments from ExxonMobil, BP and Trafigura, underlining the quality of its resource potential.

Block Energy holds a 76.5% indirect economic interest in the licences, which cover 5,331 km² and contain four historic oil discoveries: Iguega, Topaz, Ekouata and Pilote. Supported by an extensive 3D seismic database, the assets offer a strong foundation for appraisal, development and future exploration.

An established presence in Georgia

Since establishing operations in Georgia in 2017, Block has built a fully integrated in-country operating capability.

Through its wholly subsidiary Block Operating Company, staffed entirely by Georgian nationals, the Company has developed strong relationships with national and local stakeholders and is fully integrated into Georgia’s energy sector.

Our Georgian operations are organised into four projects, defined by development stage, hydrocarbon type and reservoir. Together, they are designed to increase production, redevelop existing fields, discover new oil and gas resources, and commercialise the significant oil, gas and CCS potential across our licences.

Project I delivers low cost production from the Middle Eocene reservoir within Block’s West Rustavi/Krtsanisi field. Revenue from Project I supports development of the transformative opportunities offered by Projects II, III and IV, maturing assets primed for third-party funding through farm-outs.

Our strategy has been proven through the signing of a binding agreement for the farm-out of Project III to Zhijiang Sanning Energy Co. Ltd (“Sanning”), and the farm-out of Project IV to new Georgian entrant Aspect, a US independent with a strong track record in the wider eastern European region.

The Project III farm-out commits Sanning to carrying Block for up to US$75m for appraisal drilling of 2.7 TCF of 2C Contingent Resources, with an NPV10 of US$2.2bn. The farm-out of Project IV to Aspect includes a carry of up to $95m for an exploration programme designed to validate the basin, with high impact upside.

Alongside its oil and gas portfolio, Block is advancing a significant CCS opportunity in partnership with international fertiliser company Indorama.

The successful completion of Eastern Europe’s first CO₂ injection pilot, the project has the potential to establish a major carbon storage hub in Georgia’s industrial heartland.

Experienced regional leadership and established operations

Our strategy for continued transformation of our assets is guided by management with extensive and relevant experience in Gabon and Georgia. Block’s wholly owned subsidiary, Block Operating Company, is equipped with engineering, HSES expertise, financial and commercial support.

Project I

Low-cost production funding growth opportunties

Project II

Redevelopment opportunity

Project III

Complete Sanning farm-in and commence appraisal drilling

Project IV

Acquire seismic and progress preparations to drill

CCS

Move toward FID

Gabon

Build reserves, define development plan and farm-out

  • An international independent energy company with multiple routes to growth
  • High-impact exploration offshore Gabon in contiguous licences next to fields operated by majors
  • Carried exploration of Georgian gas resources declared strategic by the Georgian state
  • Opportunity for major carbon storage hub in Georgia’s industrial heartlands
  • Transformative growth opportunities supported by cashflow realised through ongoing production
  • Management with deep expertise in Georgia and West Africa
  • Established operations base in Georgia
  • Converting technical potential into funded work programmes and equity re-rating

Related reads