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