Block Energy Plc (LON:BLOE), the oil & gas explorer company focused on the Republic of Georgia, is confident it has the right assets.
In a statement released ahead of the company’s annual general meeting (AGM) today, CEO Paul Haywood said the company’s assets comprise a set of producing or previously producing licences in business-friendly Georgia, while it has a “first-class team both here in London and on-site”.
READ: Block Energy happy to watch and learn to tap Georgia potential
“With a location in the heart of Georgia's hydrocarbon region, and Schlumberger active in a neighbouring acreage, we are confident we have the right assets to reach break-even production rates in the near term and to go on to build a highly profitable oil and gas company,” he said.
Last Friday, the company revealed that the West Rustavi 16a legacy well had flowed 200 barrels of oil over a ten-hour test. The company added that a further 300 barrels of oil were recovered in further tests over subsequent days.
“We plan to build the production rate from our Norio and West Rustavi operations by the end of H1 2019 to 900 bopd [barrels of oil per day], which at current oil prices would generate annual revenues of circa US$13 million,” Haywood’s AGM statement said.
“We believe our current £7 million market capitalisation significantly undervalues our assets, given the potential of our current operations at Norio and West Rustavi, the opportunities presented by four additional sidetrack targets, the gross 608 BCF [billion cubic feet] gas resources at West Rustavi, the additional workover opportunities at Norio, and the 28 MMbbl [millions of barrels] of gross 2C contingent resources at Satskhenisi,” Haywood said.
In late morning trading, Block Energy shares were 5.6% higher at 2.85p.
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