Block Energy, the production and development company focused on Georgia, has announced its audited results for the year ended 31st December 2024.
Highlights:
Block continued to make progress in executing its four Project strategy in the year ended 31 December 2024:
- Continued focus on strong Health, Safety, Environment and Social ("HSES") practices, with further updates to its HSES plans, training matrixes and leadership development.
- Delivered 283,205 operational man-hours with one Lost Time Incident ("LTI"); (2023: 299,824 with one LTI).
- Improved cash position and stable overall financial performance:
- The Company remained cashflow positive, with the cash position again improving to $1,136,000 ($713,000 in 2023 and $450,000 in 2022).
- Decrease in G&A and other costs, despite higher Project III, CCS and Project IV related costs, reflecting ongoing cost and operational discipline within the business.
- Strategic decision to pause Project I drilling in the year, based on strong cash position, cash requirements and marginally lower than expected natural production decline.
- Revenue of $7,533,000 (2023: $8,366,000) reflecting natural production decline and marginally lower commodity pricing.
- Positive EBITDA of US$ 1.06 million (2023: US$ 1.47 million), in line with expectation.
- Focus on high-impact projects saw continued good progress:
- Published an independent engineering report on the Patardzueli-Samgori field (as part of Project III), ascribing 1,074 BCF 2C contingent resources to the field and a project net present value (10) of US$ 501 million
- Published updated internal contingent resource reports on Rustavi and Teleti Project III, supporting a combined Project III project net present value (10) of US$1.67 billion.
- Launched the farm-out campaign for Project III, with good uptake from potential industry partners with farm-out discussions and due diligence activity ongoing.
- Published an independent evaluation of the carbon storage potential of the Patardzueli-Samgori Middle Eocene as part of the CCS project.
- Signed a Memorandum of Understanding with JSC Rustavi Azot ("Rustavi Azot"), a subsidiary of Indorama Corporation Pte Ltd with respect to pilot studies on the CCS opportunity.
- Commenced Phase 2 studies on the CCS project.
- Completed work on the new 'slim hole' well engineering for Project I.
- Farmout of Project IV progressing.
- Robust production, better than expected and in-line with the 2022 ERCE reserve report:
- Total group production of 131,579 barrels of crude oil (2023: 151,184 barrels).
- Total Group gas production of 274 MMCF (2023: 283 MMCF).
- Average annual production of 485 boepd (2023: 543 boepd).
- Production reflected natural decline, which was marginally better than expected, and the strategic decision to pause Project I drilling, to focus financial & human resources on the high-impact projects.
Block Energy plc's Chief Executive Officer, Paul Haywood, said:
'The focus of 2024 was on advancing the Company's high-impact projects, which each saw solid progress. These projects are in-line the Company's strategy to focus on those opportunities which offer the greatest overall value potential for shareholders, with each of these offering transformative potential. With the advances made in 2024, the Company is at an inflection point, with several material catalysts possibly coming to fruition over the coming year.
As part of that decision to focus on transformative projects, the Company elected to pause Project I drilling, on the basis it remained cashflow positive and allowed additional resources to be used in these high value areas. The Company ended the year with a further improvement in its cash position, despite the inevitably decrease in production from natural decline, which was marginally less than expected'.
Source: Block Energy
