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27 Jun 2018 | 09:31

Block Energy increases stake in West Rustavi licence

Oil and gas explorer and producer Block Energy said Wednesday it had increased its stake in the West Rustavi licence in Georgia by 20% for $1.5m in cash and shares, increasing its working interest to 25%.

The additional stake in the licence was funded by a $0.5m cash payment and the distribution of a further $1m in new shares in Block Energy priced at 4p per share. 'West Rustavi has proven reserves and gross, unrisked contingent resources ('2C') of 608 BCF gas and 37.9 million barrels of oil and is located in the proven and prolific Kura Basin in Georgia,' Block Energy said.

With a netback of about $2.6 per Mcf and conservative 50% recovery, Block Energy said it believes this would translate into about a $600m project.

Drilling and re-entry of initial targets are slated for the fourth quarter of 2018. 'The value potential for West Rustavi is outstanding. With multiple discoveries and a 608 BCF 2C gross unrisked contingent gas resource and 37.9MMBbls of oil, the Licence is of huge importance to the Company going forward, in terms of development potential and value uplift,' said Paul Haywood, Director of Block Energy.

At 9:31am: (LON:BLOE) Block Energy Plc Ord Shs Gbp0.0025 share price was +0.05p at 3.3p

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