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Exxon+BH+Block Energy - comments!

lse:frr

#1

Posted by Pyrotech on the LSE board. He makes some interesting points…any comments!

"Personally, when different companies are saying same thing i start to get excited
We have Exxon that are suddenly interested in hydrocarbons in Georgia
We have Baker Hughes who have seen more data than any of us and want to have a play in the field
We have a unknown major or supermajor studying data and soon to make its move.

Close to where we are you have Block energy and what they talk about is pretty much what FRR have been telling us. A HUGE GAS SOURCE.
Probably the same structure but i suggest we are better positioned than they are, i feel they are on the edge of a huge gas structure where FRR are sat very close to the sweet spot.
Here is what Block say about it:-
Block Energy Chief Executive Officer Paul Haywood said: “The Georgian Government’s Agreement with Exxon further validates the country’s credentials as a secure and stable place to do business, and an emerging hydrocarbon jurisdiction in terms of naturally occurring oil and gas. Thanks to our positioning and excellent relationships in Georgia, we have already secured a high-quality asset base, which includes multiple low risk development opportunities as well as a huge gas discovery that we estimate is potentially worth US$600 million to Block. Having raised £5 million at the time of our IPO in June this year, we are well placed to play our part in realising the potential of Georgia’s energy industry. Work is already underway at Norio to increase production to 150 bopd by Q1 2019, and we will drill sidetracks and test the gas discovery at West Rustavi shortly. With so much activity on the near horizon we look forward to a high-impact newsflow over the coming months.”

I think timelines are still blurred and it looks like getting house in order is taking priority before the news really starts to flow. I hope the seller is cleared before the second major and flow rates are released. I feel if too early we will see it sold heavily into. Personally i think that seller has been and is Outrider.
I would not be surprised if Hope wanted to cause us problems and then come riding in as a saviour to take over the company. Sooner he resigns or gets removed from the BOD the better. Meanwhile i am sat here quietly waiting and nerves are at a minimum. I think Zaza and SN have this strategy mapped out quite nicely and its in our benefit that this wait goes on, although many of us feel the patience straining at times.

Forgot to add, if Block estimates the gas alone is worth $600m and we had similar which is less than inside estimates, the gas alone makes us worth 2p a share, without oil.
The wording says $600m potentially worth to Block so that would indicate profit.

Just makes it all make sense, and just maybe we are all sat on a winner here."

eyson


#2

Interesting comment on BLOE. I notice there’s no discussion page on ii yet for BLOE.
When will ii set one up? I can’t find how to do it (but, to be honest, no to had time to look very far)
How many contributors are invested in BLOE, or are interested in what’s happening next door to FRR?
Lets have a page please II !
TP


#3

Or, we could just keep talking about them on here.
They are highly relevant to what we are doing, anything significant politically or discovery-wise that happens to them may affect us and vice versa.


#4

Just tried to go on BLOE discussion and it says it does not exist or is Private and then directs you to FRR. Strange!


#5

Yep- I saw Pyros post as well

I certainly agree on the main point - and have said a number of times that eventually we could see a large JV going well beyond Block 12. However I think that is some way off. We also mustn’t forget GOGC here - they will want a significant share in any JV, and will want to steer the building blocks so their interests are protected (and for GOGC here I mean the Georgian Government). I also have no doubt that the statements on a tax friendly environment are primarily focussed on the O&G sector.

Regarding Hope I differ somewhat. FRR - after a very adversarial dialogue succeeded in getting the loan notes moved out by 4 years and - most critically - removing the convertible option. During mediation there will have been a trade off here - and Hope on the board was the result. The RNS announcing his appointment was as terse as they come - no warm words form the Chairman/CEO just a gritted teeth statement of fact. I have no doubt that from Day One Steve and Zaza were looking for an opportunity to pounce - and the fact that Hope never bought shares (or at least never notified a purchase) says it all.

Which leads me to one final comment. Re YA FRR reported that they had clear (irrefutable) evidence that YA were dealing in unauthorised shares. Getting such information is not that easy - funds usually use disguised fronts if they engage in this type of dealing. Plus we heard Zaza categorically say that Hope/Outrider had “damaged” the company. Hence the claim for damages. I am sure in my mind that the two are linked in some way - and I wouldn’t be surprised if the claim relates accordingly.

Of course the positives here are that a) Zaza & Co seem fully on the front foot, and b) that in the very same video Zaza said that third party discussions are proceeding well

Intriguing is an understatement! And as I said the other day - IMHO the short term SP here is an utter irrelevance


#6

Interesting, BLOE +10%, FRR -1.25%
That seems wierd to me when FRR has the biggest potential.
TP


#7

TP
Don’t try to fathom the AIM market, as it will never fail to disappoint and confuse you! Manipulation and under handed deception are rife here. I do feel we have one of the better shares here now and we are on the cusp of something good. Been a long time coming for me and a lot longer for some others on here.
GLTA


#8

Another update today and a nice video to boot. Worth a look although not FRR


#9

BLOE announces today that it is using a perforation tool New to Eastern Europe (but actually it’s 90s tech). Nevertheless it is going to enhance BLOE’s ability to recover improved quantities of oil to surface.
Also gets a royalty if tech is used by others in the area.
I wonder if it’s any use to FRR. It does seem to be a well bore friendly tool as opposed to using explosive charges.
TP n


#10

BLOE full RNS:

RNS Number : 0388K
Block Energy PLC
11 December 2018

Block Energy Plc / Index: AIM / Epic: BLOE.L / Sector: Oil and Gas

Block Energy Plc (“the Company”, “Block” or “the Group”)

Advanced Completion/Work-Over Technology Secured for Multi-Well Programme in Georgia

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce it has signed a service agreement for the provision of an advanced downhole perforation technology with a proven record of significantly enhancing recovery rates. The agreement gives Block exclusive access to the specialist drilling tool throughout eastern Europe, the Caucasus and central Asia. The Company will use the technology, which arrived onsite at Block’s operations in Georgia on Thursday (7 December 2018), to re-complete up to eight wells at its 100% owned Norio licence, part of an initial work programme targeting an increase in production at the field to 250 bopd by H1 2019.

Block has selected the tool, which is new to Georgia, over conventional perforation technologies that have had mixed success in the country. It promises to significantly enhance recovery rates by facilitating wellbore communication with reservoirs, creating a relatively small horizontal borehole (about one inch in diameter) milled through the casing wall then drilled several feet into the formation. The tool, which has been used by many operators since it was introduced in the 1990s, can drill at multiple levels and orientations in the course of a single run into the hole and can achieve up to eight or more penetrations.

The Company has signed Heads of Terms (‘the Terms’) for an agreement pursuant to which Block will help promote the technology to other exploration and production companies operating within the region, and so earn a net royalty of 10% from revenue the tool’s suppliers earn through Block’s marketing activities. The Terms also include the option of a Joint Venture Agreement pursuant to which Block would become the exclusive provider of the technology within the region.

Paul Haywood, Director of Block Energy, said: "This specialist tool is potentially game-changing for Block, offering a reliable and cost-effective alternative to conventional perforating technology, which to date has produced mixed results in Georgia. We look forward to deploying this highly robust and deployable technology with a proven record of generating significant production increases wherever it has been used and are confident it will help us achieve our initial objective of significantly scaling up Norio production to 250 bopd.

“The agreement supplements our production programme by opening a significant new source of revenue for the Company. Block will take the lead in demonstrating the technology’s effectiveness and reliability in the field, and so qualify for a 10% net royalty stream flowing from use of the tool within the region by other operators. The proposed Joint Venture Agreement, making us exclusive provider of the technology throughout the region, will put us in a stronger negotiating position when farming in to new opportunities. As reported in our recent operations update (5 December 2018), we have successfully re-entered three wells at Norio and are rigging up a fourth in preparation for the tool to be deployed to the field. I look forward to updating the market as our work programme progresses.”


#11

If they are talking about re-working eight wells to ‘scale-up’ to 250bopd production, then they have didly squat in the ground in thier license area IMHO.

dkok


#12

Have a read of this. BLOE is obviously at an early stage in its development but reading this announcement I. Conjunction with today’s news it looks like there’s a lot of potential here. They’re working in a prolificarea of proven historical production and using modern technology to get at hydrocarbon deposits previously inaccessible by legacy (Russian) means.


TP


#13

Hi Block energy managed to advance to this within few months in Georgia.
Our old FRR 20 years in Georgia???
And spent lot of money where?
And NO results to satisfy the Market. Every day 5% down


#14

Ramco14

Disingenuous as ever eh! Has the Sp dropped far enough for your short position? or are you trying to squeeze the last couple of hundredths of a penny out of it?


#15

TP

It notes that after 6 months of work in 8 wells that they will get to 250bopd! That is a lot of work for not a lot of return. T39 alone will be producing more than this!


#16

Interesting that this board is quite active as the unofficial BLOE bb. Anyone found out how to start an official bb? Perhaps ii is reading this and can tell us?
TP


#17

As this seems to be the official board for BLOE I’m pleased to note today’s RNS which gives a promising update from the Rustavi field
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BLOE/13903591.html
TP


#18

theprior…Certainly looks like a very promising RNS to me!

Isn’t that exactly the sort of RNS that we are all waiting patiently to come from FRR!!! :worried:

eyeson


#19

I see BLOE’s s/p is up strongly on that news, and frankly speaking it is great news for us too. These activities validate that Georgia has enormous O&G deposits (which was even disputed by the Georgians until recently) and the King of all the Blocks in Georgia is B12! Add to the mix that funding of up to $60m could be provided by a Hedge Fund in NY and Baker Hughes will be involved with drilling activities. Again, strong evidence that FRR has finally cracked the code and geology. What we don’t know is what our 3 oil wells are producing but the fact they are managing financing despite a fall in PoO is a good sign.

So, looking forward to next week, all eyes will be on Hope’s defence submission, if he chooses to pursue this line. May be some news on the reworking of T16 (that would be handy). And may be some news on the arbitration/PSA. The fact a term sheet for financing has been signed plus MoU with BH, there has to be strong indications that things are heading in the right direction.

JMO


#20

Errrmm, SB, you do realise this is the official BLOE bb, don’t you? If you’re going to talk about FRR could you please preface your post with the O/T nomenclature. Thank you :wink::wink:
TP