Block Energy PLC (AIM:BLOE) shares fell 13% to 0.74p following a £1.5 million equity fundraising and provided an update on operations across its portfolio in Georgia.
The fundraising, priced at 0.7p per share compared to the last close at 0.85p, was supported by institutional investors and represents Block’s first equity raise since 2020.
It included the issue of 214.3 million new shares and 107.1 million warrants exercisable at 1.0p, subject to shareholder approval.
The company said the proceeds would support the completion of the Project IV farm-out, advance commercial discussions on Project III, continue development of its CCS initiative, and pursue new ventures.
Chief executive Paul Haywood said: “This fundraising represents the company’s first equity raise since 2020 and was completed with strong institutional support. The proceeds provide additional flexibility as we progress multiple commercial workstreams.”
Operationally, Project IV remains on schedule, with positive government feedback. Project III farm-out talks are advancing with a major international energy company, alongside a non-exclusive gas offtake MoU signed with a trading firm.
Meanwhile, planning for Project II redevelopment continues, and the latest Project I well was completed on time and on budget using the company’s slim-hole technology.