Block Energy Plc (Block) is pleased to announce it has increased its working interest (WI) in the West Rustavi licence (West Rustavi) from 71.5% to 100%, further to an agreement ('the Agreement') reached with Georgia Oil and Gas Limited ('GOG') on 26 February 2019.
With immediate effect, Block will benefit from a 100% economic interest in the contractor's share of oil revenue and have greater control over the development plan to realise West Rustavi's full potential. Block is implementing a fully-funded back-to-back drilling programme designed to ramp up oil production at the Field and test its historic gas discoveries. West Rustavi has an estimated 0.9 MMbbls 2P oil reserves, 38 MMbbls of gross unrisked 2C contingent resources of oil in the Middle, Upper and Lower Eocene and 608 BCF of legacy gross unrisked 2C contingent resources of gas in the Eocene and Cretaceous.
In accordance with the Agreement, Block has paid US$250,000 in cash and issued 3,326,268 ordinary shares of 0.0025p as settlement of the US$500,000 due to GOG as total and final consideration of US$750,000 for the increase to 100%. The shares have been issued at a share price of 11.99 pence per share, being the 30 day volume weighted average price per share, in line with the Agreement. Block has also today issued 772,727 ordinary shares of 0.0025p at an issue price of 11p per share to settle liabilities amounting to £85,000 for professional services provided to the Company. Following these issues, GOG's shareholding in the Company will amount to 30,285,070 shares equating to 7.70% of the enlarged issued share capital. Application has been made for the new ordinary shares to be admitted to trading on AIM and admission is expected to commence on or around 18 July 2019 ('Admission').
In conformance with the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, Block notifies the market that, following the Admission, the Company's issued share capital consists of 393,538,662 ordinary shares which may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules. The Company does not hold any shares in treasury.
