Block Energy plc
Mayan holds an investment of £300,000 in Block Energy, via £90,000 of equity @ £0.0085 per share and £210,000 in a Secured Convertible loan with a flat 10% coupon. The loan note converts at a 10% discount to any price at which Block Energy’s shares are listed or admitted on any stock exchange other than NEX.
Block Energy is a Georgian focussed E&P company focussed on the exploitation of previously discovered fields which are prime for western technology and enhanced production techniques. Block Energy is traded on the NEX Growth Market.
Block Energy has two main interests:
Norio Oil Field, Georgia. Block has a 69% working interest (WI) in the Norio oil field which has produced over 2 million barrels (“Mbbls”) of oil and currently produces around 20 barrels of oil per day (bopd), from shallow (less than 1,000 meter deep) wells drilled in the Soviet era.
• Since its acquisition, Block has performed a detail screening of the field analysing over 50 wells and management have now prepared a low cost/risk recompletion programme which is expected to revitalise production to around 300 bopd.
• Successful execution of the company’s proposed plan for Norio will lead the company into full field development, which is expected to raise production to a peak of approximately 2,000 bopd.
Option to farm-in to Block VIII, Georgia. Block’s second interest is an option to farm-in to Block VIII, one of the largest blocks in the Georgia hosting over 4,700 square kilometres of prime acreage and home to multiple discoveries. Blocks’ initial target is the East Kavtaiskhevi (“EK”) discovery, which was also discovered back in the soviet era. Block’s farm-in commitment is to drill a deep appraisal well which will test multiple zones, unlocking a potential 36m bbls of oil.