An imminent fundraise for Block? Absolutely not
“…Keep the rig moving. Keep the crew hot and press on with the programme…”
With record levels of production Block Energy is already established as Georgia’s largest energy producer, and a material shareholder update in April revealed encouraging developments at its Project One asset with the extended well test on WR-B01Za giving an indication about future development and production.
Chief executive Paul Haywood is known for his agility and nimbleness in many aspects of his life and where Block is concerned he wanted to keep the drill bit turning and get the KRT-45Z well spud-ready by July. This well is just 1500 metres from WR-B01Za and the hope is it will result in a second material announcement this year.
To facilitate momentum a loan facility was amended and more capital made available, and for the second time in three months Haywood put in his own money to demonstrate alignment with shareholders and his confidence that Project 1 will yield more and Projects II, III and IV will be equally successful.
Haywood has committed £115,000 and Chief Operating Officer and former board director, Ken Seymour has put up £125,000. The pair didn’t want to defer the spud of the next well. They wanted to deliver.
“On balance, it made a lot of sense taking that shareholder loan,” says Haywood. “Keep the rig moving. Keep the crew hot, and press on with the programme.”
Whilst the pair weren’t expecting pats on the back, the amended loan was interpreted by some investors as a precursor to an imminent fundraise.
As Haywood explains to Sarah Lowther in the accompanying video “The short answer to that is no. The loan agreement was put in place simply to prime the pump following what was a very successful result in the B1 side track. The performance from that particular well has set a new standard in terms of overall production performance expected from the Project One development plan.”
“We’ve got lots to play for here and the stars now appear to be aligning.”
Read the company’s corporate presentation
Watch Block Energy’s video (below) on Project II and drilling operations on the JSR-01DEEP well
Read the company’s annual report
Follow the company on Twitter @BlockEnergyplc
The author was remunerated but does not hold shares in the company