Block Energy PLC Close of Accelerated Bookbuild; result of Placing (2379Z)
16 May 2019 - 5:01PM
UK Regulatory
TIDMBLOE
RNS Number : 2379Z
Block Energy PLC
16 May 2019
16 May 2019
Block Energy PLC
("Block Energy" or "the Company")
Close of Accelerated Bookbuild and result of Placing
Further to the announcement made yesterday, Block Energy plc
(AIM: BLOE), the exploration and production company focused on the
Republic of Georgia, is pleased to announce it has completed a
placing of 109,090,000 new Ordinary Shares ("Placing Shares"),
raising approximately GBP12 million (before expenses) with
institutional investors at a Placing Price of 11 pence per share.
Mirabaud Securities Limited ("Mirabaud") acted as sole bookrunner
and broker in connection with the Placing. Mirabaud has been
appointed as joint broker to the Company with immediate effect.
The Placing Price represents a discount of approximately 15.7
per cent. to the closing market price, of 13.05 pence per Existing
Ordinary Share on 15 May 2019, the last business day before the
announcement of the Placing.
The Placing Shares shall be issued and allotted by the Company
in three tranches. The issue and allotment of the First Tranche
Firm Placing Shares shall take place by no later than 4.00 p.m. on
the day prior to First Admission. These shares have been allotted
separately so as to meet eligibility criteria for Venture Capital
Trust and Enterprise Investment Scheme relief. The Second Tranche
Firm Placing is conditional, inter alia, upon First Admission
(which is expected to become effective with dealings in all of the
Firm Placing Shares to commence on 22 May 2019); and the
Conditional Placing is conditional, inter alia, upon Second
Admission (which is expected to become effective with dealings in
the Conditional Placing Shares to commence on 5 June 2019).
Upon First Admission, the Enlarged Share Capital is expected to
be 318,951,218 Ordinary Shares. Upon Second Admission, the Enlarged
Share Capital is expected to be 385,221,218 Ordinary Shares. On
this basis, the Placing Shares will represent approximately 28.32
per cent. of the Company's Enlarged Share Capital.
The Conditional Placing is conditional upon, inter alia,
approval by Shareholders at the General Meeting of the Placing
Resolutions. The Placing Resolutions will provide the Company with
the authority to allot and issue, the Placing Shares. It is
expected that the Conditional Placing Shares will be admitted to
trading on AIM at 8.00 a.m. on 5 June 2019.
In addition, and conditional upon First Admission the Company
will issue 2,141,000 warrants to brokers exercisable at the Placing
Price at any time in the three years following First Admission; and
conditional upon on Second Admission will issue 3,313,500 broker
warrants to brokers exercisable at the Placing Price at any time in
the three years following Second Admission.
Notice of General Meeting
A Circular explaining the background to and reasons for the
Placing and containing the Notice of General Meeting is expected to
be posted to Shareholders shortly. A copy of the Circular and
Notice of General Meeting will thereafter be made available on the
Company's website: www.blockenergy.co.uk.
Capitalised terms not otherwise defined in this announcement
shall have the same meaning ascribed to such terms in the
announcement released earlier today unless the context requires
otherwise.
Chief Executive Officer Paul Haywood commented:
"We are delighted to have secured support for an ambitious work
programme to develop our West Rustavi licence, the potential of
which was confirmed by last month's excellent oil production test
rates at well 16aZ of approximately 1,100bbl/d, more than three
times higher than forecast. We used the GBP5m we raised for our IPO
last June to demonstrate our capacity to undertake disciplined low
cost operations and prove the value of our assets. With this fresh
injection of GBP12m we keenly anticipate pursuing our programme to
unlock West Rustavi's company-making potential: proven reserves of
0.9MMbbls, contingent resources of 38 MMbbls and 608 BCF and
excellent netbacks of US$36/bbl at US$65/bbl Brent and US$3.40/MCF
for gas.
We have designed a rigorous programme promising rapid paybacks.
The upgrade of production facilities will provide capacity for
production from three new sidetracked wells. In Q4 this year we
will sidetrack West Rustavi well 38, a neighbour and analogue to
16aZ. Two further wells, West Rustavi 30 and 3 will be sidetracked
through H1 next year, and their associated gas discoveries tested.
We will acquire a 3D seismic survey this year which will allow us
to identify optimal locations for new gas wells and horizontal oil
wells to be explored next year. We will also continue our ongoing
workover programme at Norio, and have scheduled the field's well 60
for sidetracking later this year.
The funds raised also give us the freedom to explore fresh
opportunities: we are a young, ambitious company keen to apply the
low cost, innovative drilling technologies we have deployed in
Georgia to new ventures in the region and beyond. Today marks a
major step forward for Block as we move towards our objective of
becoming one of AIM's newest mid-tier oil and gas producers."
For further information contact:
Paul Haywood Block Energy Plc Tel: +44 (0) 20 3053
(Chief Executive Officer) 3631
Neil Baldwin Spark Advisory Partners Tel: +44 (0) 20 3368
(Nominated Adviser) Limited 3554
Peter Krens (Broker) Mirabaud Securities Tel: +44 (0) 20 7878
3362
Frank Buhagiar/Juliet St Brides Partners Ltd Tel: +44 (0) 20 7236
Earl 1177
(Financial PR)
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END
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