viewBlock Energy PLC

Block Energy acquires Schlumberger assets in Georgia without upfront payments

Schlumberger gets options over a 23% stake in Block Energy in return for “Georgia's most productive block”

Block Energy PLC - Block Energy acquires Schlumberger assets in Georgia without upfront payments

Block Energy PLC (LON:BOE) has acquired new acreage in Georgia, picking up two areas held by Schlumberger for no upfront cash consideration.

Schlumberger will instead be given options over Block Energy stock - 120mln shares, or 23.3% of the company, ascribing a base deal value of around US$6mln.

The firm is acquiring Block XI which is described as “Georgia's most productive block” - over 180mln barrels of oil have been produced historically, with a peak of 67,000 barrels of oil per day (bopd) in the mid-1980s – and, it adds 64mln barrels (boe) of 2P oil reserves to the group.

READ: Block’s latest sidetrack flows 550 boepd in tests

The other adjacent new asset is Block IX which comprises exploration acreage. Recent appraisal drilling by Schlumberger has unearthed additional potential, identifying 600bn cubic feet of in-place gas.

The new assets added that the acquisition increases 2C contingent resources by 29mln boe plus 245mln boe of prospective resources.

“The Acquisition is transformational for Block Energy, providing the Company scale and increased production, reserves and resources,” said Paul Haywood, Block chief executive in a statement.

“A critical component of this transaction is that it will be completed with no cash consideration, using options on our own share capital. The acquisition demonstrates management's ability to identify, compete for and secure the right deals for its shareholders in an environment posing unprecedented challenges for the industry.”

Haywood noted that the company will update the market on a work programme for the enhanced integrated portfolio.

Quick facts: Block Energy PLC

Price: 3.65 GBX

Market: AIM
Market Cap: £15.99 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Block Energy PLC named herein, including the promotion by the Company of Block Energy PLC in any Content on the Site, the Company receives from...


Market report: FTSE's festive cheer after lockdown measures get set to ease

FTSE 100 moved higher on the good vaccine news yesterday and the round of UK lockdown easing measures confirmed last night by the prime minister. The blue-chip index added 38 to 6,372.   Not everyone was happy with new tiered lockdown system and Boris Johnson was accused of killing...

4 days, 20 hours ago

2 min read