Block Energy plc, the exploration and production company focused on Georgia, is pleased to provide an update regarding the Company's previously disclosed acquisition of Schlumberger Rustaveli Company Limited ("SRCL"). Block announces that some amendments have been made to the sale and purchase agreement ("SPA") with Schlumberger B.V. that was announced on 26 March 2020 by way of an amendment and settlement deed, including the following:
- Completion to occur on 23 November 2020, subject to certain conditions;
- On completion, Block to take possession of approximately 29,000 bbls of crude oil inventory (the "Oil Inventory"); and
- Schlumberger to enter into a transition services agreement with Block, to assist with the handover.
Block Energy assets in Georgia (Map source: Block Energy)
Under the SPA, the cash proceeds from any sales of Oil Inventory were payable to Schlumberger, but the Deed transferred the Oil Inventory to Block. The Oil Inventory is a welcome boost to Block's balance sheet and will support the Company in its integration of the assets and incremental production, into the Block portfolio.
The technical assistance from Schlumberger post-closing will enable Block to ensure a full and detailed transfer of technical and corporate information and to seamlessly take over the SRCL oil and gas operations.
Block Energy Chief Executive Officer, Paul Haywood, said:
"I am delighted to be able to inform shareholders about the amendments to the SPA and that the acquisition of Blocks XIB and IX is in near sight.
We look forward to 23 November, when we will commence ownership of these transformational assets. They will truly define our future as an oil and gas company in Georgia."
KeyFacts Energy: Block Energy Georgia country profile