News Oil & Gas

Block looks at financing options following ‘robust’ Q1

Block Energy plc said it was looking at “non-dilutive financing options” to accelerate production at its gas and oil operations in Georgia.

Future: Block has a practical plan to grow production and create value for shareholders (Pixabay – generic)

PRODUCTION

The company included the news in its report for the three months ended 31 March 2022.

Production was 46.1 Mboe (Q4 2020: 34.6 Mboe), comprising 32.1 Mbbls of oil (Q4: 24.9 Mbbls) and 14.0 Mboe of gas (Q4: 9.7 Mboe).

The average gross production rate was 512 boepd (Q4: 376 boepd).

Block said that well WR-38Z, which had been off-line, resumed production at the end of March, providing a strong Q1 exit rate for daily production of more than 630 boepd.

JKT-01Z began oil and gas production in mid-January 2022 and has delivered “substantial additional cashflows to the company”.

Block Energy continues to prepare to drill the side-track of well WR-B01, and has received many of the long-lead items required to drill two sidetracks.

The company has also started constructing the pipeline from the WR-B01 to WR-38 wellsites.

This will enable the immediate monetisation of any gas produced from the WR-B01 sidetrack.

FINANCES

The company reported Q1 revenue of $2,361,000 (Q4: $2,550,000).

As at 31 March 2022, Block had $1.2 million cash at bank (31 December 2021: $1.2 million).

Staff and sub-contractors worked more than 92,000 operational hours, with no lost time incidents.

VALUE

Chief executive Paul Haywood said that the company’s operations combined with improved commodity prices had created a robust financial result.

“We believe we now have a better understanding of the subsurface, which we have translated into a practical plan to grow production and create value for shareholders. 

“While we can do this with our existing resources, we are also looking into non-dilutive financing options to accelerate production growth, and other ways to enhance value for shareholders.”