Block Energy plc said that SLB (formerly Schlumberger) had decided not to exercise its right to acquire 108 million ordinary shares in the company.
ACQUISTION
In 2020, Block granted 120 million options as consideration for the acquisition of the Schlumberger Rustaveli Company Ltd (SRCL), which held Georgia’s most productive licence, Block XIB.
Of these, SLB assigned to Jindal Petroleum a total of 12 million options which are due to expire on 30 November 2023.
Block said that the acquisition of SRCL provided it with additional production, material additional oil reserves, significant gas resources, oil inventory, materials, and a US$133m cost recovery pool while preserving its cash position for further growth.
VALUE
Chief executive Paul Haywood said SLB’s decision was very good news for the company and its shareholders.
“The result for Block and its shareholders is a significant gain in value and reduction in dilution, both contributing to our continued commitment to maximising value, for all shareholders, whilst we advance through our three-project strategy.”