Block Energy enters offshore Gabon with Ndjila and Mpari PSC deal
(WO) — Block Energy plc is expanding into offshore Gabon through a conditional agreement with Pilgrim Exploration Limited tied to the Ndjila and Mpari production sharing contracts (PSCs), marking the company’s entry into a new West African upstream region alongside a proposed $6.3 million equity fundraise.
The transaction gives Block Energy exposure to approximately 5,331 km² across two contiguous offshore licences containing four historical oil discoveries and additional pre-salt and post-salt exploration potential.
Under the agreement, Block plans to provide a convertible loan to Pilgrim, which holds a 90% interest in the PSCs through subsidiaries. Upon conversion and receipt of required regulatory approvals, Block would hold a 76.5% economic interest in the licences.
The company said its near-term focus will center on evaluating discovered resources, development planning and advancing discussions with potential drilling partners.
“This transaction represents an excellent value-accretive acquisition of discovered oil and high-potential exploration in a well-known oil producing jurisdiction,” said Paul Haywood, CEO of Block Energy. “We believe that the assets combine an anchor development opportunity with significant upside and broad running room.”
Haywood added that the Gabon assets provide both geological and jurisdictional diversification alongside the company’s existing operations in Georgia.
To support the transaction, Block Energy announced plans to raise approximately $6.3 million through a placing and retail offer. The company said the fundraise will occur in two closings and includes a retail offer available to existing shareholders.
Pilgrim Exploration CEO Simon Barry said the companies plan to work alongside Gabonese authorities to advance development of the licences.
The offshore blocks are located in an established oil-producing region of Gabon and are considered prospective for both discovered resources and broader exploration upside.
