Block Energy PLC (LON:BLOE) said it continued to perform well and has made significant progress despite the Coronavirus (COVID-19) pandemic.
In its full year results statement for 2020, the company said the year started strongly as new wells saw positive testing results and were boosted by early production.
The company noted it moved swiftly in the response to the pandemic and low oil prices by pausing capital spending programmes, cost-cutting and suspending production. It added that these actions allowed it to benefit as its operations resumed in an improved operating environment.
“As we have proven this past year, Block benefits from the flexibility of being able to easily shut-in and restart production in reaction to the fluctuating oil price,” said chairman Philip Dimmock.
“Our cautious decision to do so last year has been rewarded with a much-improved oil price environment from which we are able to benefit fully. Our prudent choices made in relation to capex and general business expenditure have ensured our strong position today.”
In terms of its financials, Block reported improved revenue at US$1.5mln from US$314,000 in 2019.
At the end of 2020, the company had 28,000 barrels of crude stored in its inventory.
It reported a US$5.51mln loss for the twelve months ended December 31 whilst the West Rustavi remained offline amidst the pandemic.
Block highlighted that in the current year to date, in which the wells have been producing, it has generated some US$1.25mln of revenue from oil sales (some 34,421 barrels). In February, it added gas production and gas sales, generating US$123,000 of revenue since coming online.
The West Rustavi 38Z and 16aZ were put back online in January and early February, and, through February and March production averaged around 573 barrels oil equivalent per day.
Block meanwhile looks forward to fresh drilling operations at West Rustavi later this year.