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Exxon+BH+Block Energy - comments!

lse:frr

#61

With Zaza’s little case dragging on beyond summer I would guess the Georgians could well be losing patience with Frontera and with BLOE making Frontera look even more stupid than they already are then the risk of losing the license must be growing day by day.


#62

Booster,

That depends what’s going on behind the scenes. For all we know FRR are producing 1000 bopd and are drilling new wells and advancing plans for a new gas drill with BP.

I’d love to go out there and take a peak with some high powered binoculars. I probably will visit Georgia if no news by end of June.

Cash is coming for somewhere to pay lawyers and their large staff.


#63

Malcy

Block Energy

I had a number of enquiries yesterday about why I hadn’t written up the Block announcement, it was all very innocent. You will have noticed that i did an early flash blog as I was on the move and my first read of the RNS didn’t make sense as the choke sizes quoted were not comparable. I decided to wait until I could verify the situation and after a long chat with Paul Haywood this morning I am more than comfortable to remain very positive on the shares.

The misunderstanding on the choke size was indeed a simple typo, they have scaled back the choke to 1/8″ in order to cut back production to 700 b/d from 1,100 as they need to ‘upgrade production facilities’ which probably means that they are short storage, after all who thought that this well would be a barn burner…?

However the company is already moving on and in short order will be drilling more wells anyway, they seem to have three sidetracks on the books with one pretty much drill-ready and I know that they are keen to go after all the associated gas with further appraisals there. All in all there is much more excitement ahead for Block and I am having a proper meeting with Paul after Easter


#64

Excellent piece on vox markets just now also


#65

Block CEO interview - worth a listen


#66

Flying today guys. I worked it out that if it gets to 18p then I’ve retrieved my FRR money. Fingers crossed.


#67

Another great day for BLOE but I miscalculated on the previous post. I need to get this up to 27p to cover FRR loss and this one covered. But atm, nothing seems impossible


#68

Best of luck,jaytee. Hope you get there.


#69

More BLOE news - apologies again for using FRR thread

Bookbuild placing to accelerate production ? I’m not really familiar what that means but people on LSE seem to think its a good thing.

15 May 2019

Block Energy PLC

(“Block Energy” or “the Company”)

Proposed Placing to Raise up to GBP 12m million

Block Energy PLC, the exploration and production company focused on the Republic of Georgia, today announces its intention to conduct an accelerated bookbuild (the “Bookbuild”) to raise gross proceeds of up to approximately GBP 12m by way of a placing (the “Placing”) of new ordinary shares of £0.0025 each in the Company (“Ordinary Shares”).

The Bookbuild will open with immediate effect following release of this announcement. A further announcement confirming the closing of the Bookbuild, the number of new Ordinary Shares issued as part of the Placing and the price being paid per new Ordinary Share (the “Placing Price”) is expected to be made in due course.

Mirabaud Securities Limited (“Mirabaud”) is acting as sole bookrunner in relation to the Placing.

Expected Use of Proceeds

The Company is undertaking the Placing in order to fund the acceleration of its defined development strategy in relation to its rights under the West Rustavi PSA. Over the next 12 months, the Company intends to carry out the following works in West Rustavi:

· Drill up to four horizontal sidetracks to scale up production and fund future capital programmes.

· Expand production facilities to increase capacity to 4,000 - 5,000 bbl/d.

· Acquire 3D seismic to provide critical understanding of subsurface.

· Appraise two existing gas discoveries.

· Drill one new well targeting gross contingent 2C gas resource of 608 BCF.

Within the next 24 months, the Company aims to bring West Rustavi gas reserves into production, to continue oil development and to secure additional licences in Georgia and the wider region.

Additional Information on the Placing and the Bookbuild

The Placing Price and the final number of new Ordinary Shares to be issued pursuant to the Placing (the “Placing Shares”) will be determined following the close of the Bookbuild. The Placing Shares, when issued, will be fully paid and will rank pari passu in all respects with the existing Ordinary Shares.

It is intended that up to 42,820,000 of the Placing Shares will be issued and allotted following close of the Bookbuild pursuant to the existing authority of the Directors to issue and allot Ordinary Shares free from pre-emption rights (the “Firm Placing Shares”) and that the issue and allotment of the remainder of the Placing Shares shall be conditional on the approval of certain resolutions by the shareholders of the Company (the “Conditional Placing Shares”) which will be sought at a general meeting of the Company, details of which can be found below.

The timing of the closing of the Bookbuild and allocations of Placing Shares are at the discretion of Mirabaud and the Company. The Placing Price and details of the results of the Placing will be announced as soon as practicable after the close of the Bookbuild. Your attention is drawn to the detailed terms and conditions of the Placing described in the Appendix (which forms part of this announcement).

By choosing to participate in the Placing and by making an oral and legally binding offer to acquire Placing Shares, investors will be deemed to have read and understood this announcement in its entirety (including the Appendix) and to be making such offer on the terms and subject to the conditions in it, and to be providing the representations, warranties and acknowledgements contained in the Appendix.

Further updates will be provided as and when appropriate.

Circular and notice of general meeting

A circular containing further details of the Placing and notice of a general meeting of the Company expected to be held at 10.00 a.m. on 4 June 2019 to, inter alia, pass the resolutions required to implement the Conditional Placing, is expected to be published shortly after the completion of the Bookbuild and to be despatched to Shareholders as soon as practicable thereafter. Following its publication, the circular will be available on the Company’s website at www.blockenergy.co.uk.

Unless otherwise defined, capitalised terms in this announcement (including the Appendix) have the same meaning ascribed to them as in the Company’s Admission Document dated 4 June 2018.


#70

Increase capacity to 4000-5000bopd!!! Block appear to be having the success that we thought FRR were going to having.

Normally dilution results in a drop to the placing price but not always.

Good luck.


#71

No placing price published as yet but funds being used to enhance value is good news. Current sp will rely on how the placing is priced and current sentiment which has been a little negative over the last few days, perhaps caused by profit taking from the recent meteoric rise from around 2p! This is maybe an opportunity to take a breather and review block’s position. For me they’re still looking undervalued but others may disagree. Doc Holiday certainly feels there’s more to come and I agree with him. Luck all.
TP
ii still don’t think they’re big enough to have their own page, maybe 5k barrels/day will change that??


#72

“secure additional licences in Georgia and the wider region.” Yep Block are looking good right now as a speculative punt.

Seems Block may have figured out the secret to getting those old wells flowing again.

FWIW I think T39 may be flowing quite nicely also. Any thoughts on the recent court docs? Seems FRR are very keen for the discovery, I suspect FRR are looking for evidence that Hope has/had a buyer lined up or has been conspiring to line up a buyer prior to Dec 2018. If FRR did discover this then it’s game over for Hope as it would prove his motivation beyond any doubt. Conversely if Hope is whiter than white then FRR have made a paranoid giant miscalculation as the evidence thus far looks somewhat weak.

Back to the Hole.


#73

Makes Zaza and SN looks even more stupid than they do already.

The Georgians should tell Frontera to sling their hook.


#74

11p was the placing price and it was quickly filled. Block have also changed brokers to Mirabaud. PH has mentioned looking at other sites beyond their current area. Wonder where that will be ?


#75

Aww Booster, they wont listen, just like you wont ha


#76

Despite a placing price of 11p the sp has remained relatively stable at 12.7 (-2%). Nobody is selling them off and this would seem to be a good sign that BLOE will begin to climb again (20p here we come!)?
TP


#77

If it hits 11p I may have a nibble for a swing trade.


#78

I think you’ll be lucky to get in under 12!
TP


#79

Maybe and if I don’t get 11-11.5p I wish holders the best, I think the future is bright for Block. I wished I’d kept my 20k in there bought under 4p but that’s life.


#80

Just bought 10k at 11.42, I think it could dip to 10.90 but we’ll see, Friday afternoon always sees the day traders closing and there’s a load of T20’s that folks are looking to close so always thought I’d get my buy in. What a fool for selling under 4p eh!!!
Good luck, swing trade only for me. I’ll never “hold” an AIM stock again.