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Block Energy PLC - Update on acquisition of SRCL

RNS Number : 9481F
Block Energy PLC
20 November 2020
 

20 November 2020

Block Energy Plc

("Block" or the "Company")

Update on the Acquisition of the Schlumberger Rustaveli Company Limited

Block Energy plc, the exploration and production company focused on Georgia, is pleased to provide an update regarding the Company's previously disclosed acquisition of Schlumberger Rustaveli Company Limited ("SRCL"). Block is pleased to announce that some amendments have been made to the sale and purchase agreement ("SPA") with Schlumberger B.V. ("Schlumberger") that was announced on 26 March 2020 by way of an amendment and settlement deed (the "Deed"), including the following:

·    Completion to occur on 23 November 2020, subject to certain conditions;

·    On completion, Block to take possession of approximately 29,000 bbls of crude oil inventory (the "Oil Inventory"); and

·    Schlumberger to enter into a transition services agreement with Block, to assist with the handover.

Under the SPA, the cash proceeds from any sales of Oil Inventory were payable to Schlumberger, but the Deed transferred the Oil Inventory to Block. The Oil Inventory is a welcome boost to Block's balance sheet and will support the Company in its integration of the assets and incremental production, into the Block portfolio.

The technical assistance from Schlumberger post-closing will enable Block to ensure a full and detailed transfer of technical and corporate information and to seamlessly take over the SRCL oil and gas operations.

 

Block Energy Chief Executive Officer, Paul Haywood, said:

"I am delighted to be able to inform shareholders about the amendments to the SPA and that the acquisition of Blocks XIB and IX is in near sight.

We look forward to 23 November, when we will commence ownership of these transformational assets. They will truly define our future as an oil and gas company in Georgia."

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

For further information please visit http://www.blockenergy.co.uk/ or contact:

Paul Haywood

(Chief Executive Officer)

Block Energy Plc


Neil Baldwin

(Nominated Adviser)

Spark Advisory Partners Limited

Tel: +44 (0)20 3368 3554

Peter Krens

(Corporate Broker)

Mirabaud Securities Limited

Tel: +44 (0)20 3167 7221

Billy Clegg / Owen Roberts / Violet Wilson

(Financial PR)

Camarco

Tel: +44 (0)20 3757 4980

Notes to editors

Block Energy is an AIM-listed independent oil and gas company focused on production and development in Georgia, applying innovative technology to realise the full potential of previously discovered fields.

The Company has a 100% working interest in the highly prospective West Rustavi onshore oil and gas field with multiple wells that have tested oil and gas from a range of geological horizons. The field has so far produced 50 Mbbls of light sweet crude and has 0.9 MMbbls of gross 2P oil reserves in the Middle Eocene. It also has 38 MMbbls of gross unrisked 2C contingent resources of oil and 608 BCF of gross unrisked 2C contingent resources of gas in the Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1 January 2018).

Block also holds 100% and 90% working interests respectively in the onshore oil producing Norio and Satskhenisi fields. In March 2020, the Company entered into a conditional sale and purchase agreement to acquire a company that holds Georgian onshore Blocks IX and XIB.

The Company offers a clear entry point for investors to gain exposure to Georgia's growing economy and the strong regional demand for oil and gas.

Glossary

1.   bbls: barrels. A barrel is 35 imperial gallons.

2.   Mbbls: thousand barrels.

3.   MMbbls: million barrels.

4.   BCF: billion cubic feet.

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