Block Energy PLC Issue of Options and Shares and PDMR Dealing (4230I)

TIDMBLOE

RNS Number : 4230I

Block Energy PLC

02 December 2022

2 December 2022

Block Energy plc

("Block" or the "Company")

Issue of Options and Shares and PDMR Dealing

Block Energy plc, the development and production company focused on Georgia, announces that it has issued nil-cost options and shares.

On 1 December 2022, the Company granted nil-cost options over a total of 1,972,236 ordinary shares of 0.25p each ("Options") to directors and employees. The Options were granted in lieu of cash payment for 40% of salaries and up to 50% of directors' fees, in accordance with the cash conservation measures announced on 7 April 2020 and subsequent agreements with the employees and non-executive directors for fees to be paid in nil-cost options in lieu of cash payment. The number of shares was calculated by dividing the amount of monthly salary or fee to be paid in Options by the volume weighted average price of the ordinary shares during the calendar month that the services were provided.

Also, pursuant to agreements to exercise options immediately upon grant, on 1 December 2022:

1. Philip Dimmock, Non-Executive Chairman, exercised nil cost options to acquire 128,306 ordinary shares of 0.25 pence each;

2. Jeremy Asher, Non-Executive Director, exercised nil cost options to acquire 87,481 ordinary shares of 0.25 pence each; and

3. Kenneth Seymour, Non-Executive Director, exercised nil cost options to acquire 87,481 ordinary shares of 0.25 pence each.

Of the total number of Options granted, 1,442,625 Options were granted to PDMRs, as shown in the table below.

 
 PDMR               Position                Number        Number        Resulting         Resulting          Resulting 
                                        of Options    of Options    total options    total ordinary     total ordinary 
                                           granted     exercised        held over            shares   shares following 
                                                                         ordinary         following           exercise 
                                                                           shares          exercise 
                    Chief Executive 
 Paul Haywood        Officer               467,033                     47,595,359        12,544,381              1.88% 
                   -----------------  ------------  ------------  ---------------  ----------------  ----------------- 
                    Chief Financial 
 William McAvock     Officer               672,324                     17,916,413         4,039,130              0.60% 
                   -----------------  ------------  ------------  ---------------  ----------------  ----------------- 
                    Non-Executive 
 Philip Dimmock      Chairman              128,306       128,306          928,612         2,794,508              0.42% 
                   -----------------  ------------  ------------  ---------------  ----------------  ----------------- 
                    Non-Executive 
 Jeremy Asher        Director               87,481        87,481                0         1,353,503              0.20% 
                   -----------------  ------------  ------------  ---------------  ----------------  ----------------- 
                    Non-Executive 
 Kenneth Seymour     Director               87,481        87,481                0         1,780,166              0.27% 
                   -----------------  ------------  ------------  ---------------  ----------------  -----------------

Additionally, on 2 December 2022, the Company allotted 1,845,501 ordinary shares of 0.25p each to three service providers in lieu of cash settlement for services provided to the Company with a total value of GBP33,765.

Application will be made for the admission to trading on AIM ("Admission") for the 2,148,769 ordinary shares. The ordinary shares will rank pari passu in all respects with the existing ordinary shares of the Company. Admission is expected at 8.00 a.m. on or around 8 December 2022.

Total Voting Rights

Following Admission, the Company's issued share capital will comprise 668,638,392 ordinary shares with one voting right each. As the Company does not hold any shares in Treasury, the total number of voting rights in the Company is also 668,638,392 and this figure of ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

**S**

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

For further information please visit http://www.blockenergy.co.uk/ or contact:

 
 Paul Haywood              Block Energy plc           Tel: +44 (0)20 
  (Chief Executive                                     3468 9891 
  Officer) 
 Neil Baldwin              Spark Advisory Partners    Tel: +44 (0)20 
  (Nominated Adviser)       Limited                    3368 3554 
 Peter Krens               Tennyson Securities        Tel: +44 (0)20 
  (Corporate Broker)                                   7186 9030 
 Mark Antelme              Celicourt Communications   Tel: +44 (0)20 
  Philip Dennis                                        8434 2643 
  (Financial PR Adviser)

Notes to editors

Block Energy plc is an AIM-listed independent oil and gas company focused on production and development in Georgia, applying innovative technology to realise the full potential of previously discovered fields.

Block has a 100% working interest in Georgian onshore licence blocks IX and XI(B) . Licence block XI(B) has 2P reserves of 64 MMboe, comprising 2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe (Source: CPR Bayphase Limited: 1 July 2015). Additionally, following an internal technical study designed to evaluate and quantify the undrained oil potential of the Middle Eocene within the Patardzeuli field, the Company has estimated gross unrisked 2C contingent resources of 200 MMbbls of oil. Licence block XI(B) is Georgia's most productive block, with historical production of over 180 MMbbls of oil from the Middle Eocene, peaking in the mid-1980s at 67,000 bopd.

The Company has a 100% working interest in licence block XI(F) , which contains the West Rustavi onshore oil and gas field. Multiple wells have tested oil and gas from a range of geological horizons. The field has produced over 75 Mbbls of light sweet crude and has 0.9 MMbbls of gross 2P oil reserves in the Middle Eocene. It also has 38 MMbbls of gross unrisked 2C contingent resources of oil and 608 Bcf of gross unrisked 2C contingent resources of gas in the Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1 January 2018) .

Block also holds 100% and 90% working interests respectively in the onshore oil-producing Norio and Satskhenisi fields.

The Company offers a clear entry point for investors to gain exposure to Georgia's growing economy and the strong regional demand for oil and gas.

Glossary

   --    bbls: barrels. A barrel is 35 imperial gallons. 
   --    Bcf: billion cubic feet. 
   --    boe: barrels of oil equivalent. 
   --    bopd: barrels of oil per day. 
   --    Mbbls: thousand barrels. 
   --    MMbbls: million barrels. 
   --    MMboe: million barrels of oil equivalent.