Block Energy plc said it built its production and development base and maintained a strong financial position in 2020 due to its acquisition of 100% shares of Block Rustaveli Ltd in West Rustavi, Georgia.
The acquisition, formerly Schlumberger Rustaveli Company Ltd, holds the PSCs to Blocks IX and XIB.
FINANCIAL
In its audited results for the year ended 31 December 2020, Block Energy reported an increase in revenue to $1,255,000 (2019: $314,000) while other income included $100,000 (2019: $nil) for sales of materials.
Losses were $5,512,000 (2019: $6,130,000) because the company’s income statement covers a shorter period of 12 months compared with 18 months in the prior period.
For most of 2020, wells in West Rustavi were shut in to help cover the group’s cost base.
The company continued to produce and sell oil from its Norio and Satskhenisi licences with revenue in 2020 of $1,255,000.
At the end of the year, the group’s cash balance was $6,331,000 (2019: $6,494,000).
Block Energy said that the group’s financial position changed significantly over the past year, with net assets of $29,866,000 (2019: $20,610,000) owing to the acquisition of Block Rustaveli Ltd and the $7.2 million raised in the equity placing in December 2020.
Following the impact of Covid-19 on oil prices, Block Energy postponed all new capital expenditure, and directors and employees accepted 40% of their salaries in shares.
OPERATIONS
Block Energy signed a sales agreement signed with Bago LLC for gas produced at the West Rustavi field.
Construction of an EPF, with capacity for up to six wells, to exploit Block Energy’s associated gas and contingent gas resources, was completed on budget in November 2020.
Results of a 100 km2 of 3D seismic survey over and beyond the West Rustavi licence showed good subsurface imaging of the main producing and prospective formations in the licence.