Block Energy plc’s revenues rose 35% based on increased production, helping to reduce losses “significantly” from its oil and gas licences in southeast Georgia.
FINANCES
The company’s audited results for the year ended 31 December 2022 showed revenue of $8,262,000 (2021: $6,114,000), with other income including $281,000 from an insurance claim.
The total loss for the year was $1,160,000 (2021: $4,581,000), representing “a significant improvement”.
Gas sales amounted to $770,000 (2021: $596,000).
PRODUCTION
During the year, the group produced 120,359 barrels of crude oil (2021: 108,000 barrels), with the increase primarily due to the JKT-01 well, brought online in January 2022.
Gas production fell slightly to 267 mmcf (2021: 288 mmcf), which included the State of Georgia’s share of production before cost recovery and profit sharing.
Block had more than 9,000 barrels of crude oil inventory at 31 December 2022 (31 December 2021: 20,000 barrels).
One minor lost time incident was reported across the 382,542 operational man hours worked during 2022.
COST CUTTING
Chairman Philip Dimmock said that the year-on-year improvement was continuing into 2023, and he was confident Block would return a profit for the first time this year.
“All of this is only possible with a rigorous approach to managing and mitigating the inevitable day-to-day risks facing the business, including those of costs and financing, safety and the wider business environment, among others.
“Cost management is part of the company’s culture and has been effectively delivered through improved efficiencies, aggressive supplier contracting, careful and considered investment planning and by employing innovative solutions to unforeseen problems.”
STRATEGY
Chief executive Paul Haywood added that the company had made material progress since 12 months ago when it began its three-project strategy of concurrent development and appraisal activity.
“As revenue continues to grow, so can the company.
“Our plan is clear, the strategy is working, and the team is energised to execute operationally and strategically.
“As we enter our next drilling phase, the company has never been in a more exciting position.”