Block Energy provides update on operations in the Republic of Georgia

LONDON -- Block Energy Plc, the exploration and production company focused on the Republic of Georgia, has provided an operations update from its Norio license (100% working interest), Satskhenisi license (90% working interest) and the West Rustavi permit (25% working interest), which collectively have net proven oil reserves of 1.5 MMbbl plus 60 MMbbl of oil and ~600 Bcf of gas classified as 2C contingent resources.

Highlights

• On track for near-term commencement of phase one of three phase work programme focussed on scaling up production to 900 bopd within 18-24 months via a fully funded, low-cost/low-risk workover and sidetrack program of existing wells across license base

• Access to further 20 km of existing high quality 2D seismic data across West Rustavi License

-Provides improved understanding of the structural faulting in license area

-Validation of preferred well locations and horizontal pathway

• Bolstered technical team on the ground in Georgia as work program intensifies

-Appointed four geologists/geophysicists and one logistical and HSE manager with significant Georgian and multi-national experience

• Service rig inspections complete with final negotiations for contracts underway ahead of mobilization to three locations

-First rig to mobilize to Satskhenisi to complete a short three well workover program during third-quarter 2018

-On completion at Satskhenisi, rig to move to Norio where eight candidate wells have been selected o One workover rig and one drilling rig to be mobilized to West Rustavi, targeting 300 bopd from first high-impact horizontal side-track well

• Enhanced perforating system identified with potential to increase production rates by two or threefold over conventional perforating technology

-Finalization of service contract imminent