Block Energy PLC (LON:BLOE) remains strong and agile, said chief executive Paul Haywood, who in today’s interim results statement continued to count down to the start of gas sales from the West Rustavi project in Georgia.
The start of gas sales will be an important near-term catalyst following April’s suspension of oil production amidst the pandemic and volatile crude oil markets.
Earlier this month, Block reported significant operational progress with the installation of early production facility (EPF) which sets the company up for gas sales starting in the fourth quarter.
READ: Block counts down to first gas sales
The company also noted, at that time, that it had sold some US$570,000 worth of crude inventory supported by improved pricing.
In Wednesday’s interim results statement, for the first six months of 2020, the company confirmed it held US$2.25mln of cash at June 30. Prudent cost-cutting and cash conservation measures were put in place in response to the COVID-19 pandemic.
"Undoubtedly, this has been a very tough six months for the sector, but I am pleased this hasn't stopped Block from still achieving its goals for the period,” Haywood said in the statement.
“With the EPF in place and connected to the first of two West Rustavi wells, we expect gas sales to commence in Q4.”
He added: “Block Energy remains strong and agile, with cash on the balance sheet and near-term realisation of its gas reserves.
“Through these gas sales, we will generate more cash from our production base.
“We look forward to the remaining months of 2020, to continue our mission of value creation for our shareholders, through growing the business and unlocking Georgia's potential."
Haywood noted that the acquisition of SRCL has been slightly delayed due to COVID-19 restrictions, but both parties remain committed to completing the deal and it sees potential that will be communicated in due course.
“We have been progressing an extensive sub-surface technical study, which is revealing some exciting short and medium-term opportunities that will be presented to the market on completion of the acquisition,” he said.
The company reported a US$2.66mln loss.