Business as usual for Block Energy in Georgia
“…We are working on multiple big events. There has been a lot of interest in what Block are doing in Georgia which is also keeping our M&A Team extremely busy…”
The moving round of chairs that Block Energy’s chief executive references is an understated way of describing the company restructure in 2022 that saw the amicable redundancy of the chief financial officer position and more frequent references to an M&A team.
What is a constant is the company’s three project strategy that is in part backed by the Georgian government, encouraged by comprehensive, and perhaps too slow, discussions with several major trading houses and the securing of favourable commercial rates as the energy industry re-established itself as back in vogue.
Block Energy is the oil and gas producer that operates in Georgia which is more peaceful than its neighbours Russia and Armenia. Chief executive Paul Haywood talks about heightened security, compliance, support and access to a refinery “that’s capable of handling in excess of around 40 to 50,000 barrels. Of course, we’re not quite there yet with our production.”
Haywood uses words judiciously, so that word “yet” is significant.
While investors are distracted by the recent events associated with ‘The Deep’ aka JSR-01 DEEP (Project II), he reminds investors that the jewel in the crown is the appraisal of ‘the evaluation and development of the substantial natural gas resource throughout the Eocene in Blocks XIF and XIB.’ This is Project Three and Projects 1,2, and 3 are running concurrently so investors have a larger portfolio and not a single event opportunity to enjoy.
Listen to Paul talking to Sarah Lowther about how the company’s proactivity saw it lock in prices for its drilling programme before the inflation boageyman raised its head, and how the three project strategy aims to maximize Block’s ability to reinvest free cash back into the ground and generate profits for shareholders.
Watch (below) operations manager Guram Maisuradze outline progress being made on JSR-01DEEP and Block’s three project strategy
Access the Competent Person’s Report on the Krtsanisi Anticline, West Rustavi and Krtsanisi Blocks and watch Head Geophysicist, Paul Wilson talk through the report.
Access the company’s full suite of investor videos here
Follow the company on Twitter @BlockEnergyplc
The author was remunerated but does not hold shares in the company