Will Block become a Blockbuster before the years out?
“…We expect gas sales to commence in Q4 and Block to become cash flow positive…”
For Georgia’s multi party government to approve Block Energy’s purchase of the Schlumberger Rustaveli Company Limited is testament to the confidence it has in the UK oil and gas exploration and production company.
Schlumberger’s Georgian onshore licence block assets are prolific. Block XIB is the largest ever-producing asset in Georgia with over 180 million bbls of oil produced, and as the country will be the consumer of domestic production, the government needs to trust the custodian of its most precious energy resources.
It trusts Block Energy which has cash on the balance sheet, and the prospect of gas sales from Q4 2020 which puts the company into cash flow positive territory.
Listen to Chief Executive Paul Haywood tell Sarah Lowther how two critical milestones will be achieved by the end of this year, the relationship between the UK company and Georgia’s ruling party and Block’s outstanding cash management.
Watch Paul talk about this transformational acquisition in this Proactive UK video
Block’s Georgian interests are unaffected by the current conflict between Armenia and Azerbaijan.
Click here to read the interims corporate update released September 2020
The author was remunerated but does not hold shares in the company