Block Energy announces interim results for the six months ended 30 June 2026

AIM-listed Block Energy, the international oil and gas company with assets in Georgia and interests in offshore Gabon, has announced its unaudited consolidated interim results for the Company and its subsidiaries for the six months ended 30 June 2026.

Health, safety and environment

Block recorded 148,911 operational man-hours with zero lost-time incidents during the six months ended 30 June 2026 (1H 2025: 136,065 operational man-hours). Safe and responsible operations remain fundamental to the Company’s operating approach and the delivery of its growth strategy.

Strategic highlights

The first half was a period of significant strategic delivery. Block completed the Aspect XIQ farm-out, signed a binding Framework Agreement with Sanning in respect of Project III, and established a new growth platform located offshore Gabon within the fairway of the Gulf of Guinea. These milestones demonstrate the Company’s ability to turn technical work into commercial partnerships and to broaden shareholder exposure to material oil and gas opportunities across various jurisdictions, through a partner-funded growth strategy.

• Completed the XIQ farm-out with Aspect Georgia, LLC, a subsidiary of US-based Aspect Energy. Block is fully carried through a staged work programme with estimated gross expenditure of approximately US$95 million (Block internal estimate), targeting 301.7 MMboe of gross mean unrisked recoverable prospective resources (DeGolyer and MacNaughton, 2023) in the Martkopi Terrace. The programme extends from seismic through exploration and appraisal drilling to early production facilities, contingent on results and the agreed stages.
• Signed a binding Framework Agreement with Zhijiang Sanning Energy Co. Ltd (“Sanning”) for the farm-out of Project III, which contains 2.77 Tcf of gross 2C contingent gas resources (OPC 2024 and internal estimates). The Framework Agreement provides for up to US$75 million of total carry, including initial appraisal activities currently estimated at US$13 million. Under the terms of the Framework Agreement, Block will retain 49% of Project III and operatorship through appraisal, subject to definitive documentation, which is well advanced, government and other customary approvals.
• Established a 76.5% indirect economic interest, net of the Government of Gabon’s 10% carried interest, in the Ndjila (CD2) and Mpari (CD3) PSCs through the secured convertible loan arrangement previously announced with Pilgrim Exploration Limited. The 5,331 km² offshore position combines four historical oil discoveries with substantial pre- and post-salt exploration potential.
• Advanced the CCS opportunity following OPC’s February 2026 report confirming mineralisation of the CO2 injected during the pilot. The next phase has been designed to focus on commercial feasibility, verification and potential scale-up.
• Refinanced the Company’s US$2.0 million secured loan, extending its maturity to August 2027 on materially the same terms.
• Raised gross funds of £4.7 million (US$6.3 million) before expenses through a placing and retail offer at 1.1 pence per share, supporting the Gabon entry and additional working capital.
• Continued to evaluate further farm-outs and selective new ventures, applying the partner-funded approach across the wider portfolio.

Operational and financial performance

• Cash and cash equivalents of US$2.690 million at 30 June 2026 (31 December 2025: US$1.493 million), after US$4.312 million of advances made to Pilgrim. The increase in cash was supported by the equity fundraise.
• Oil in inventory net to the Company at the end of the period was 9.61 Mbbls (1H 2025: 8.27 Mbbls).
• Revenue of US$2.887 million (1H 2025: US$3.380 million).
• Group loss of US$659,000 (1H 2025: loss of US$639,000) and positive adjusted EBITDA of US$56,000 (1H 2025: positive adjusted EBITDA of US$81,000).
• Georgia extraction activities generated positive adjusted EBITDA of US$794,000 (1H 2025: US$713,000), before corporate and other costs of US$738,000 (1H 2025: US$632,000). Net cash used in operating activities was US$415,000 (1H 2025: US$171,000 generated).
• Total production of 67.7 Mboe, comprising 48.0 Mbbls of oil and 19.6 Mboe of gas (1H 2025: 87.5 Mboe, comprising 66.4 Mbbls of oil and 21.1 Mboe of gas).
  • Average daily production of 374 boepd (1H 2025: 483 boepd).
• Oil sales of 31.3 Mbbls, generating revenue of US$2.52 million at a weighted average realised price of US$80.6/bbl (1H 2025: 49.9 Mbbls, US$3.02 million and US$60.5/bbl).
• Gas sales of 82.9 MMcf, generating revenue of US$0.36 million at a weighted average realised price of US$4.4/Mcf (1H 2025: 82.2 MMcf, US$0.36 million and US$4.4/Mcf).

Operating performance

Lower first-half production reflected mature-field decline and intermittent downtime affecting artificial-lift equipment. Management is prioritising targeted well interventions, maintenance and improved production reliability, while directing growth capital towards the larger opportunities across the portfolio.

Administrative expenses were US$1.147 million (1H 2025: US$1.010 million), during a period of active transaction and technical work. Cost control and cash conversion remain central to the execution of the Company’s strategy.

Post-period progress and commercial momentum

On Project IV (XIQ), the Aspect-funded 3D seismic programme is translating the farm-out into visible field progress. As announced on 21 September 2026, approximately 70% of the Martkopi survey had been acquired, with acquisition expected to complete by mid-October. Processing and interpretation will refine prospect definition of Martkopi Terrace and support the selection of future exploration drilling locations.

On Project III, work continues with Sanning and the parties’ advisers on the definitive transaction documents and the proposed appraisal programme. The focus remains on converting the binding Framework Agreement into a completed transaction and a funded programme to appraise Block’s strategic gas resources.

In Gabon, the technical programme is delivering encouraging early insights into the discoveries and wider exploration potential. Integration of the well and seismic datasets is refining the Iguega development concept, evaluating the other discoveries and helping to prioritise further appraisal and exploration work. Technical validation remains ongoing.

In Gabon, the Ndjila (CD2) and Mpari (CD3) PSCs are attracting interest from potential industry partners, with preliminary commercial discussions underway. Block is also exploring further potential farm-outs across its Georgian portfolio, with the objective of funding material work programmes while retaining meaningful exposure to successful outcomes.

Commenting, Paul Haywood, Block Energy Chief Executive Officer, said:

'Block is now a materially broader business, with a completed US-backed farm-out in Georgia, a Binding Framework Agreement to advance our strategic gas resources in Project III and a substantial discovered-oil position offshore Gabon. The common thread is clear: to use our technical and commercial capability to secure and develop high-impact opportunities and attract partner capital while retaining meaningful exposure to success.

The Aspect-funded 3D seismic campaign is already making visible progress, while early technical work in Gabon is reinforcing our confidence in the significant opportunity there. We are working to convert the Sanning Framework Agreement into definitive agreements and exploring further farm-outs across the portfolio. With disciplined capital allocation and several significant opportunities to advance, our ambition is to make 2027 a high-impact year of appraisal, exploration and commercial delivery.'

Outlook: building towards a high-impact 2027

• Project III: pursue definitive agreements and required approvals, with appraisal operations planned for H1 2027, subject to transaction completion and operational readiness.
• Project IV (XIQ): complete seismic acquisition, progress processing and interpretation, and advance towards exploration drilling decisions under the agreed partner-funded programme.
• Gabon: mature the discovered-oil opportunities and wider exploration portfolio, and convert industry engagement into partner-funded exploration, appraisal and development work programmes.
• Producing assets and finance: maintain strong focus on well availability, cash conversion and capital discipline, and actively manage the 2027 secured-loan maturity.
• Wider portfolio: pursue further farm-out opportunities, advance CCS commercial feasibility and assess selective new ventures consistent with the Company’s financial capacity and execution priorities.

Together, these efforts create several potential catalysts for 2027. Transaction timing and programme delivery remain subject to definitive agreements, approvals, funding and technical results, with further updates to follow as material milestones are achieved.

Background

Block Energy plc is an AIM-quoted independent international oil and gas company with production, development, appraisal and exploration assets in Georgia and interests offshore Gabon. Its Georgian portfolio includes Project III, with 2.77 Tcf of gross 2C contingent gas resources (OPC 2024 and internal estimates), and the XIQ exploration licence, where an Aspect-funded programme is advancing the Martkopi Terrace prospect.

The Company’s strategy is to advance material resource opportunities through technical evaluation, partnerships and asset-level funding, while retaining meaningful exposure to successful outcomes. Its producing assets remain important to operating cash generation and the wider strategy.

In Gabon, Block has a 76.5% indirect economic interest in the Ndjila and Mpari PSCs, net of the Government of Gabon’s 10% carried interest, through the secured convertible loan arrangement with Pilgrim Exploration Limited. The licences cover 5,331 km² and contain the Iguega, Topaz, Ekouata and Pilote discoveries, alongside material pre- and post-salt exploration potential in an established West African petroleum province.

Original announcement link

Source: Block Energy