Block Energy, the development and production company focused on Georgia, has announced the interim results for Block Energy and its subsidiaries for the six months ended 30 June 2023.

Highlights:

• 283,176 operational man-hours worked (1H 2022: 184,000 man-hours) with one lost time incident (1H 2022: none).
• Achieved record production rates in Q2 2023 of 664 boepd, significantly above corporate breakeven rate.
• Safely drilled WR-B01Za establishing good production rates from the well, which commenced stable production on 25 March.
• Spud well WR-34Z, with the well being completed to plan, on time and within budget in August 2023. The well was handed over to production with all hydrocarbons being monetised.
• Completed Project III gas resource evaluation across XIB and XIF Lower Eocene and Upper Cretaceous reservoirs using newly re-interpreted seismic.
• Signed MoU with the Ministry of Economy and Sustainable Development of Georgia, supporting the concept of long-term gas offtake of resources associated with Project III.
• Completed farm-out of part of XIB to Georgian Oil and Gas limited and received initial seismic results confirming the prospectivity of the new Project IV area.
• Undertook 11 workovers and wellbore interventions, including the installation of an Electrical Submersible Pump ("ESP") on well WR-38Z, which significantly reduced non-performing time on the well.
• Secured $2.0 million in non-dilutive debt financing with support from existing shareholders and senior management.
• Strong & consistent production performance during the period:
  • Total production of 96.4 Mboe, comprising 75.3 Mbbls of oil and 21.1 Mboe of gas (1H 2022: 93.3 Mboe, comprising of 64.9 Mbbls of oil and 28.4 Mboe of gas).
  • Average daily production of 533 boepd (1H 2022: 515 boepd).
  • Stable production from WR-B01Za was achieved on 25 March.
• Oil sales of 51.4 Mbbls with revenue of $3.45 million, representing a weighted average price of $67 per barrel (1H 2022: Oil sales of 45.6 Mbbls with revenue of $4.16 million, representing a weighted average price of $91 per barrel).
• Gas sales of 88.0 MMcf with revenue of $0.48 million, representing a weighted average price of $5.4/Mcf (1H 2022: 106.8 MMcf with revenue of $0.43 million, representing a weighted average price of $4.02/Mcf). 
• Oil in inventory net to the Company at the end of the period was 11.7 Mbbls.
• Loss for the period from continuing operations of $432,000 (1H 2022: profit of $627,000).
• Cash position of $882,000 as at 30 June 2023 (31 December 2022: $450,000).

Block Energy plc's Chief Executive Officer, Paul Haywood, said:
"I would like to start by thanking the Block Energy team for their continued efforts across many fronts whilst delivering on the plan safely and efficiently.

'Performance throughout the period has delivered strong production and positive cashflows and even though H1 2023 suffered from lower-than-average oil prices, as of today, the Company remains on track to deliver its best full-year financial results in history. This is a testament to the team's enhanced operational performance and rigorous capital discipline, supported by strong H2 2023 Brent pricing. With WR-34Z now handed over to production, the remainder of this year promises to be an exciting time for the Company as we seek to further increase production with the drilling of KRT-45Z and advance the high-impact Project III multi-Tcf gas opportunity. I look forward to providing further updates, in due course."

KeyFacts Energy: Block Energy Georgia country profile