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Block Energy confident a shares re-rating will happen as it posts maiden results

Published: 16:54 22 Nov 2018 GMT

Barrels of oil
The company has commenced an eight well work-over programme and a sidetrack on its Norio licence, aiming to increase production at the field from 10 to 150 bopd by the close of 2019

Republic of Georgia-focused oil and gas producer Block Energy Plc (LON:BLOE) ended its financial year with a “robust cash position”.

In its first set of results since listing in June, the company highlighted the progress it has made over the last 18 months, during which time it has secured a strategic licence position in the prolific Kura basin.

READ: Block Energy chief hails the entry of ExxonMobil to the Republic of Georgia

It has a portfolio of oil and gas assets in Georgia, all of which are producing or have historically produced and all of which have significant development potential, the company noted.

The group continues to produce around 15 barrels of oil per day from the legacy assets and has been heartened by the recent increase in the oil price.

Revenue for the year clocked in at £133,000.

It coughed up £385,000 in relation to its listing on AIM, which contributed in a loss before tax of £1.36mln.

The group ended the financial year (which runs to the end of June) with cash of just under £4mln.

"Block Energy is a junior oil and gas company with the potential resource base of a mid-cap oil and gas company,” said Paul Haywood, the chief executive officer of Block Energy.

“The solid operations infrastructure we have established and the well-designed work programme we are implementing are big steps towards closing the valuation mismatch. Specifically, the commencement of multi-well operations at Norio and the imminent West Rustavi work programme herald the beginning of another busy and exciting period for Block, one that promises much high impact news flow as we work to transform the company into a leading independent oil and gas producer with a market valuation to match.

“At the same time, while overseeing our Georgian programme, our directors continue to evaluate additional late-stage development opportunities offering clear paths to production and value creation for our shareholders," he added.

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