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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Block Energy Plc | BLOE | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 0.725 | 08:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 0.725 | 0.725 | 0.725 | 0.725 | 0.725 |
| Industry Sector |
|---|
| OIL & GAS PRODUCERS |
| Top Posts |
|---|
Posted at 05/11/2024 15:44 by batiatus Remember this share was at 6pence from 5 years ago?The scammer AJames was convincing people to load up on the shares and then disappeared after? Well, if people had listened to Mike then they wouldn't have gotten into the position they are in now. What is the share price now? 0.077p |
Posted at 01/11/2024 14:42 by faraweigh2 Blue finish in to the close for Bloe?Bashers will be buying too, ahead of anticipated news.Bash then Buy lol! |
Posted at 19/8/2024 12:10 by batiatus Bloe isn't then? |
Posted at 22/7/2024 16:58 by jaknife Faraweigh2,"Pivotal year and the Company believes news of its initiatives and operating developments no longer conform to a quarterly news cycle and therefore risk compromising strategic and commercial discussions with potential farm-in candidates. All taken as fact from recent Ragulatory Newsflow." You are confusing "facts" with "management spin". BLOE's management are a bunch of shameless spivvy promoters, they routinely put out spin to sucker in naïve retail punters. Hence you read: "2023 stands out as a pivotal year for our Company." Whereas professional investors looks at the accounts and see: * In 2023 the Company made a post-tax loss of $2,213k, a 37.6% worse loss than 2022's post-tax loss of $1,608k * Cash burn in 2023 was $1,737k, the Company ended the year with net debt of $1,287k when it had net cash of $450k a year earlier * The 2023 accounts are caveated as to going concern because the $2.0m secured loan is due for full redemption in August 2024 and there are scenarios in which the Company may not be in a position to settle this liability on time. Your job as an investor is to look at the accounts and see if the words that management BS to you match with the words and numbers that they are legally obliged to publish in the accounts. In BLOE's case management have won awards for pulling the wool over the eyes of its investor base. There are some deluded investors who actually think that BLOE made a profit in 2023! Can you believe that? JakNife |
Posted at 07/7/2024 12:15 by jaknife andyalbi71,”Block is making profit , that’s fact.” Except it’s not a “fact”, it’s actually complete and utter fiction. And it’s incredible that you still can’t understand something as simple as what “profit” means. BLOE has reported a loss in its accounts *EVERY* year that it’s been on AIM. You only need to look at the numbers to confirm this. And not only has BLOE reported a P&L loss in *EVERY* year that it’s been on AIM, it’s also burnt cash in *EVERY* single one of those years as well. What hope is there for you as an investor when you can’t even do something as simple as identify what a profit is? JakNife |
Posted at 17/6/2024 11:30 by herecomesthesun CRIKEY skifthe fisherman isn't going to tell you that UP FRONT and BEFORE he has taken a position but you will soon know when the old trout is back in as he will be back to his full on ramp mode just like he did the last time on here at 1.7p - 1.8p -------------------- The Skipper - 01 May 2024 - 10:35:07 - 13731 of 14014 - BLOE The market makers seem to be really short of stock here as I had to use a fill or kill order just to get a 48k top up with some spare cash I found in my account The Skipper - 01 May 2024 - 22:16:35 - 13745 of 14014 - BLOE we have a lovely inverted head and shoulders on the long term chart with the neckline around 1.9p. Charting folklore suggests that if that is breached we will see a significant rise in pretty short order -------------------- BEFORE falling deafly silent and declaring (in hindsight) weeks later that he already (miraculously) sold out at 1.9p and 1.8p for a profit DESPITE promising people any breach of 1.9p and it's off to the silly price rise races in pretty short order one other thing skippy has no free cash so if he is suddenly announcing to the world to be buying or topping up on another stock you can rest assured he has ALREADY sold one of his other highly promoted penny stocks to fund it bwahahahahahahaha :) |
Posted at 31/5/2024 19:16 by jaknife andyalbi71,"Are they actually operating at a loss " Yes. It's not difficult to see really because companies do this thing where they publish annual accounts and, within those annual accounts, they show this thing called a "profit & loss account". It just so happens that BLOE published their annual accounts just eight days ago, you can read them here: And if you read the accounts then you'll find the line: "Total comprehensive loss for the year (attributable to the equity holders of the parent)" which shows a loss of $2,139k Now we could stop there but BLOE has a particular feature in its accounts that often needs explaining to newbie retail investors. If you scroll down to the cash flow statement you will find two lines in the cash flow statement that are: Expenditure in respect of Intangible assets (50) Expenditure in respect of PP&E (3,040) These represent expenses that many skanky companies capitalise rather than expense to their P&L. And of course that's exactly what BLOE have done! A large portion of these costs relate to well stimulation. IFRS permits BLOE to treat well stimulation as a capital item rather than a P&L item even though BLOE has to stimulates its wells on a regular basis. If you read note 12 then you'll also see (look at the asterix) that BLOE capitalised $361k of interest expense ... because it can. So overall BLOE's real P&L would have been materially larger *IF* if hadn't decided to fiddle its accounts like the skanky company that it is! But the best test of whether a company is loss-making or not is to look at the cash because it's very hard to cheat the cash! BLOE started the year with $450k of cash and no debt but it ended the year with $713k of cash and (drum roll please ....... )$2m of debt. Hence they burnt cash of $1,737k ($450k + $2,000k - $713k). So the fudged accounts say that the loss last year was $2,139k whilst the actual cash loss last year was $1,737k. Plain and obvious to most people but some need their hand holding! JakNife |
Posted at 14/5/2024 10:59 by jaknife skif,"Forthcoming financials should report profitability and maybe an update re farm out." What on earth makes you think that BLOE is going to "report profitability"? 1. BLOE has reported a loss *EVERY* year that it's been listed (since June 2018). 2. BLOE reported losses for H1 (six months to 30 June 2023). see: 3. They've reported nothing to think that this will have changed in H2. BLOE is a perpetual loss-maker that only survives because it keeps finding mugs who are willing to take part in its regular placings. I wouldn't be surprised to see them place yet again. JakNife |
Posted at 12/9/2023 00:02 by iceagefarmer DATE07.09.23 Block Energy Part I : The Investment case for Georgia “…Georgi With its latest development well reaching total depth last week, Block Energy (AIM:BLOE) continues to rollout a multi-tiered strategy to realise the full potential of extensive assets in the country of Georgia. The company has made robust progress in opening up Georgia’s complex subsurface, with successive drilling successes allowing it to report record production in Q2. But although the potential value of BLOE’s assets dwarves the company’s market cap, commentary regarding Georgia’s security following Russia’s invasion of Ukraine has clouded some investors’ perceptions of its operational progress. Here, in the first of two articles looking at the company’s prospects, we take a close look at the investment case for Georgia, one of the more successful post-Soviet countries, in light of the ongoing conflict. The second will focus on BLOE’s current strategy, following CEO Paul Haywood’s video interview with TMS published last week. Georgia’s continued economic liberalisation Georgia continues to develop a liberal, trade-oriented economy, making particularly impressive progress over the last 20 years. The country is tightly woven into the global market through membership of organisations and networks including the World Trade Organisation, the Asian Development Bank, the Council of Europe, the European Bank for Reconstruction and Development, and the Organisation for Security and Co-operation in Europe. It has negotiated free trade agreements with the EU, China, Hong Kong, Turkey, the US, Canada, Japan, Norway and Switzerland, opening access to a duty-free market of 2.8 billion customers. Deals with with Israel and India are under consideration. A consistent policy of liberalisation followed by successive governments has laid the foundations for a diversified non-commodity reliant economy with robust GDP growth. Per capita income is converging toward EU levels, the poverty rate more than halving since 2010. Georgia now has a population of 3.7 million people, earning a GDP of $24.6bn. The 2014 Liberty Act was a particularly significant reform, formalising a credible fiscal framework capping the country’s fiscal deficit at 3pc and its public debt at 60pc of GDP, earning Georgia the credibility that has facilitated strong foreign direct investment averaging 8.5pc of GDP over the last 10 years. Georgia’s swift rebound from the pandemic and the initial shock of Russia’s invasion of Ukraine testifies to the country’s gathering economic resilience. It recorded economic growth of 10.5pc and 10.1pc in 2021 and 2022, and, against the grain of the global slowdown, has continued to expand rapidly, with preliminary growth for Q1 of 7.2pc. Fitch Ratings upgraded Georgia’s sovereign credit rating outlook from stable to positive earlier this year, attributing the country’s revised status to ‘exceptionally strong’ GDP, and rigorous fiscal and monetary discipline. Georgia’s strong fundamentals have allowed for continued investment in the country’s infrastructure, which grew at a record 6.7pc last year. Its progress has earned it favourable ratings across a range of international indices, particularly in regard to economic transparency. Georgia ranked seventh of 190 nations in the World Bank’s 2020 ease of business index,, came in first in the 2021 Open Budget Survey published by the International Budget Partnership, and is ranked 17th in the latest Transparency in the Time of War index compiled by the European Research Centre for Anti Corruption and State-Building. The country’s ongoing liberalisation programme earned it 15th place in the Fraser Institute’s 2022 Economic Freedom Annual Report, and 21st in last year’s Heritage Foundation Index of Economic Freedom. A thriving energy market Georgia’s growing economy has generated the surging demand for energy to which BLOE wants to make an ever greater contribution. Since 2012 Georgia has been a net importer of electricity, and its deficit is growing, expected to reach more than 3 TWh by 2030. In 2020 the country imported 99.7pc of its natural gas and 97.8pc of its oil. Only about a third of Georgia’s renewables potential has so far been tapped, leaving the country’s grid dependent on oil and gas. And with Georgia positioned at the heart of the Transcaucasian region that reaches from the shores of the Black Sea to the Caspian, rich in hydrocarbons from the Eocene, Cretaceous, Miocene and Oligocene eras, there is plenty of it. Soviet exploration and production planted the seeds for today’s infrastructure, now a highly developed complex of pipelines running through the Transcaucasus, notably the Baku-Tbilisi-Ceyhan Pipeline which moves Azeri crude to the Turkish Mediterranean and the Black Sea, and the South Caucasus Pipeline, which carries gas from Azerbaijan to Turkey: both pipelines run close to BLOE’s assets. Significant new projects include the Trans-Anatolian Pipeline (TANAP), inaugurated in 2019, and the Black Sea underwater electric cable project, signed-off late last year, linking Azerbaijani energy resources with Europe through Georgia and Turkey. Major export terminals are located at the Black Sea ports of Supsa and Poti. Operations employing the full range of modern exploration and production technologies, including 3D seismic, stimulation and directional and horizontal drilling, are facilitated through a regulatory environment ensuring an open energy market and a stable framework for Production Sharing Contracts. Georgia’s untapped resources and established infrastructure have drawn increasing interest from the world’s largest energy companies. BP has been a lead investor in the Baku-Tbilisi-Ceyhan, South Caucasus, and Baku-Supsa pipelines, in the past few years committing another $2bn to the Trans-Adriatic line, Georgia’s biggest ever inward investment. ExxonMobil has signed an agreement with the Georgian government to carry out a comprehensive review of western Georgia’s hydrocarbon resource potential. And BLOE acquired its largest production and exploration blocks from SLB (then known as Schlumberger). BLOE is integrated into the country’s energy network, both through the company’s ongoing production and a Memorandum of Understanding with the Ministry of Economy and Sustainable Development of Georgia supporting continued exploration and production, and progress towards a long-term gas offtake agreement. Georgia after Ukraine Since independence Georgia has pursued political as well as economic liberalisation. The country has a parliamentary system, parties exchanging power over the past 20 years through elections judged free and fair by independent observers. Long identifying with Europe, the nation has established close ties with the EU, submitting a formal application for membership after the Ukraine invasion. It is a member of the EU’s Eastern Partnership together with Armenia, Azerbaijan, Belarus, Moldova and Ukraine, and has signed an Association Agreement with Brussels, entering into a Deep and Comprehensive Free Trade Area. Georgian citizens have had free visa entrance to the Union since 2017. Public opinion is clearly oriented to the West: 47pc of Georgians believe their country’s foreign policy should be ‘pro-Western&# But these aspirations are complicated by Georgia’s relationship with its Russian neighbour, the key to understanding nuances of the country’s politics that can perplex observers. Georgia’s response to the Ukraine conflict, for example, which has been the subject of much commentary, must be understood in the context of the brief war it fought with Russia in 2008, which ended with the annexation of the Abkhazia and South Ossetia regions, populated by a significant number of Russian speakers. The rest of Georgia, though part of the former Soviet Union, has never had the same historic significance for Russia as Ukraine or Belorussia. In many respects Georgia’s measures are aligned with the broader international response. The country has supported the UN Resolution condemning Putin’s aggression, the suspension of Russia’s membership in the Council of Europe, and the launch of the International Criminal Court’s probe into alleged war crimes in Ukraine. The Georgian National Bank has cooperated with international resolutions, and, as noted, the country followed Moldova and Ukraine in applying for EU membership. But it has also followed its own path, the ruling Georgian Dream government resisting Ukraine’s call to impose sanctions on Moscow, arguing that such ‘unproductive& BLOE’s opportunity This, then, is the complex but stable environment in which BLOE is establishing itself as a major energy supplier. Georgia continues to forge its own path, developing a liberal economy and democracy with due sensitivity to its geographic and cultural location somewhere between east and west. Our second article will further detail the company’s strategy. To summarise, the company has a 100pc working interest in five Georgian onshore licence blocks, including IX and XIB, where production during the 1980s peaked at 67,000 bopd. BLOE is currently producing across six fields within four licenses, pursuing a four-project strategy guided by the principles of low risk development and appraisal, and high impact exploration. Project I is focused on a region intersecting the company’s West Rustavi and XIF blocks developing 3C Contingent Resources of 27.5 MMbbls. Project II is evaluating large, undrained areas of the deeper zones of the Middle Eocene reservoir in the Patardzeuli filed on the XIB licence, testing 200 MMbbl 2C Contingent Resources. Project III is appraising the commercialisation of substantial contingent resources of gas – 984 BCF 2C Contingent Resources – in the XIB & XIF licenses, within the Lower Eocene, Paleocene and Upper Cretaceous geological formations. And Project IV is focused on exploration of extensive structures contiguous to a proven 200 M Mbbls field. The first phase of Project I secured back-to-back drilling success through the company’s JKT-01Z and WR-B01Za wells, allowing BLOE to record Q2 production of an average 664 boepd, and to go ahead with the drilling of two further side-tracks and a new well. The latest well, WR-34Z, reached total depth last week and testing is about to commence. Our previous coverage of BLOE has offered extensive coverage of the company’s operational progress. Look out for much more detail in our next article. At the time of writing BLOE’s price was 1.3p and its market cap £8.5mDATE 07.09.23 Block Energy Part I : The Investment case for Georgia “…Georgi With its latest development well reaching total depth last week, Block Energy (AIM:BLOE) continues to rollout a multi-tiered strategy to realise the full potential of extensive assets in the country of Georgia. The company has made robust progress in opening up Georgia’s complex subsurface, with successive drilling successes allowing it to report record production in Q2. But although the potential value of BLOE’s assets dwarves the company’s market cap, commentary regarding Georgia’s security following Russia’s invasion of Ukraine has clouded some investors’ perceptions of its operational progress. Here, in the first of two articles looking at the company’s prospects, we take a close look at the investment case for Georgia, one of the more successful post-Soviet countries, in light of the ongoing conflict. The second will focus on BLOE’s current strategy, following CEO Paul Haywood’s video interview with TMS published last week. Georgia’s continued economic liberalisation Georgia continues to develop a liberal, trade-oriented economy, making particularly impressive progress over the last 20 years. The country is tightly woven into the global market through membership of organisations and networks including the World Trade Organisation, the Asian Development Bank, the Council of Europe, the European Bank for Reconstruction and Development, and the Organisation for Security and Co-operation in Europe. It has negotiated free trade agreements with the EU, China, Hong Kong, Turkey, the US, Canada, Japan, Norway and Switzerland, opening access to a duty-free market of 2.8 billion customers. Deals with with Israel and India are under consideration. A consistent policy of liberalisation followed by successive governments has laid the foundations for a diversified non-commodity reliant economy with robust GDP growth. Per capita income is converging toward EU levels, the poverty rate more than halving since 2010. Georgia now has a population of 3.7 million people, earning a GDP of $24.6bn. The 2014 Liberty Act was a particularly significant reform, formalising a credible fiscal framework capping the country’s fiscal deficit at 3pc and its public debt at 60pc of GDP, earning Georgia the credibility that has facilitated strong foreign direct investment averaging 8.5pc of GDP over the last 10 years. Georgia’s swift rebound from the pandemic and the initial shock of Russia’s invasion of Ukraine testifies to the country’s gathering economic resilience. It recorded economic growth of 10.5pc and 10.1pc in 2021 and 2022, and, against the grain of the global slowdown, has continued to expand rapidly, with preliminary growth for Q1 of 7.2pc. Fitch Ratings upgraded Georgia’s sovereign credit rating outlook from stable to positive earlier this year, attributing the country’s revised status to ‘exceptionally strong’ GDP, and rigorous fiscal and monetary discipline. Georgia’s strong fundamentals have allowed for continued investment in the country’s infrastructure, which grew at a record 6.7pc last year. Its progress has earned it favourable ratings across a range of international indices, particularly in regard to economic transparency. Georgia ranked seventh of 190 nations in the World Bank’s 2020 ease of business index,, came in first in the 2021 Open Budget Survey published by the International Budget Partnership, and is ranked 17th in the latest Transparency in the Time of War index compiled by the European Research Centre for Anti Corruption and State-Building. The country’s ongoing liberalisation programme earned it 15th place in the Fraser Institute’s 2022 Economic Freedom Annual Report, and 21st in last year’s Heritage Foundation Index of Economic Freedom. A thriving energy market Georgia’s growing economy has generated the surging demand for energy to which BLOE wants to make an ever greater contribution. Since 2012 Georgia has been a net importer of electricity, and its deficit is growing, expected to reach more than 3 TWh by 2030. In 2020 the country imported 99.7pc of its natural gas and 97.8pc of its oil. Only about a third of Georgia’s renewables potential has so far been tapped, leaving the country’s grid dependent on oil and gas. And with Georgia positioned at the heart of the Transcaucasian region that reaches from the shores of the Black Sea to the Caspian, rich in hydrocarbons from the Eocene, Cretaceous, Miocene and Oligocene eras, there is plenty of it. Soviet exploration and production planted the seeds for today’s infrastructure, now a highly developed complex of pipelines running through the Transcaucasus, notably the Baku-Tbilisi-Ceyhan Pipeline which moves Azeri crude to the Turkish Mediterranean and the Black Sea, and the South Caucasus Pipeline, which carries gas from Azerbaijan to Turkey: both pipelines run close to BLOE’s assets. Significant new projects include the Trans-Anatolian Pipeline (TANAP), inaugurated in 2019, and the Black Sea underwater electric cable project, signed-off late last year, linking Azerbaijani energy resources with Europe through Georgia and Turkey. Major export terminals are located at the Black Sea ports of Supsa and Poti. Operations employing the full range of modern exploration and production technologies, including 3D seismic, stimulation and directional and horizontal drilling, are facilitated through a regulatory environment ensuring an open energy market and a stable framework for Production Sharing Contracts. Georgia’s untapped resources and established infrastructure have drawn increasing interest from the world’s largest energy companies. BP has been a lead investor in the Baku-Tbilisi-Ceyhan, South Caucasus, and Baku-Supsa pipelines, in the past few years committing another $2bn to the Trans-Adriatic line, Georgia’s biggest ever inward investment. ExxonMobil has signed an agreement with the Georgian government to carry out a comprehensive review of western Georgia’s hydrocarbon resource potential. And BLOE acquired its largest production and exploration blocks from SLB (then known as Schlumberger). BLOE is integrated into the country’s energy network, both through the company’s ongoing production and a Memorandum of Understanding with the Ministry of Economy and Sustainable Development of Georgia supporting continued exploration and production, and progress towards a long-term gas offtake agreement. Georgia after Ukraine Since independence Georgia has pursued political as well as economic liberalisation. The country has a parliamentary system, parties exchanging power over the past 20 years through elections judged free and fair by independent observers. Long identifying with Europe, the nation has established close ties with the EU, submitting a formal application for membership after the Ukraine invasion. It is a member of the EU’s Eastern Partnership together with Armenia, Azerbaijan, Belarus, Moldova and Ukraine, and has signed an Association Agreement with Brussels, entering into a Deep and Comprehensive Free Trade Area. Georgian citizens have had free visa entrance to the Union since 2017. Public opinion is clearly oriented to the West: 47pc of Georgians believe their country’s foreign policy should be ‘pro-Western&# But these aspirations are complicated by Georgia’s relationship with its Russian neighbour, the key to understanding nuances of the country’s politics that can perplex observers. Georgia’s response to the Ukraine conflict, for example, which has been the subject of much commentary, must be understood in the context of the brief war it fought with Russia in 2008, which ended with the annexation of the Abkhazia and South Ossetia regions, populated by a significant number of Russian speakers. The rest of Georgia, though part of the former Soviet Union, has never had the same historic significance for Russia as Ukraine or Belorussia. In many respects Georgia’s measures are aligned with the broader international response. The country has supported the UN Resolution condemning Putin’s aggression, the suspension of Russia’s membership in the Council of Europe, and the launch of the International Criminal Court’s probe into alleged war crimes in Ukraine. The Georgian National Bank has cooperated with international resolutions, and, as noted, the country followed Moldova and Ukraine in applying for EU membership. But it has also followed its own path, the ruling Georgian Dream government resisting Ukraine’s call to impose sanctions on Moscow, arguing that such ‘unproductive& BLOE’s opportunity This, then, is the complex but stable environment in which BLOE is establishing itself as a major energy supplier. Georgia continues to forge its own path, developing a liberal economy and democracy with due sensitivity to its geographic and cultural location somewhere between east and west. Our second article will further detail the company’s strategy. To summarise, the company has a 100pc working interest in five Georgian onshore licence blocks, including IX and XIB, where production during the 1980s peaked at 67,000 bopd. BLOE is currently producing across six fields within four licenses, pursuing a four-project strategy guided by the principles of low risk development and appraisal, and high impact exploration. Project I is focused on a region intersecting the company’s West Rustavi and XIF blocks developing 3C Contingent Resources of 27.5 MMbbls. Project II is evaluating large, undrained areas of the deeper zones of the Middle Eocene reservoir in the Patardzeuli filed on the XIB licence, testing 200 MMbbl 2C Contingent Resources. Project III is appraising the commercialisation of substantial contingent resources of gas – 984 BCF 2C Contingent Resources – in the XIB & XIF licenses, within the Lower Eocene, Paleocene and Upper Cretaceous geological formations. And Project IV is focused on exploration of extensive structures contiguous to a proven 200 M Mbbls field. The first phase of Project I secured back-to-back drilling success through the company’s JKT-01Z and WR-B01Za wells, allowing BLOE to record Q2 production of an average 664 boepd, and to go ahead with the drilling of two further side-tracks and a new well. The latest well, WR-34Z, reached total depth last week and testing is about to commence. Our previous coverage of BLOE has offered extensive coverage of the company’s operational progress. Look out for much more detail in our next article. At the time of writing BLOE’s price was 1.3p and its market cap £8.5m |
Posted at 12/9/2023 00:01 by iceagefarmer DATE07.09.23 Block Energy Part I : The Investment case for Georgia “…Georgi With its latest development well reaching total depth last week, Block Energy (AIM:BLOE) continues to rollout a multi-tiered strategy to realise the full potential of extensive assets in the country of Georgia. The company has made robust progress in opening up Georgia’s complex subsurface, with successive drilling successes allowing it to report record production in Q2. But although the potential value of BLOE’s assets dwarves the company’s market cap, commentary regarding Georgia’s security following Russia’s invasion of Ukraine has clouded some investors’ perceptions of its operational progress. Here, in the first of two articles looking at the company’s prospects, we take a close look at the investment case for Georgia, one of the more successful post-Soviet countries, in light of the ongoing conflict. The second will focus on BLOE’s current strategy, following CEO Paul Haywood’s video interview with TMS published last week. Georgia’s continued economic liberalisation Georgia continues to develop a liberal, trade-oriented economy, making particularly impressive progress over the last 20 years. The country is tightly woven into the global market through membership of organisations and networks including the World Trade Organisation, the Asian Development Bank, the Council of Europe, the European Bank for Reconstruction and Development, and the Organisation for Security and Co-operation in Europe. It has negotiated free trade agreements with the EU, China, Hong Kong, Turkey, the US, Canada, Japan, Norway and Switzerland, opening access to a duty-free market of 2.8 billion customers. Deals with with Israel and India are under consideration. A consistent policy of liberalisation followed by successive governments has laid the foundations for a diversified non-commodity reliant economy with robust GDP growth. Per capita income is converging toward EU levels, the poverty rate more than halving since 2010. Georgia now has a population of 3.7 million people, earning a GDP of $24.6bn. The 2014 Liberty Act was a particularly significant reform, formalising a credible fiscal framework capping the country’s fiscal deficit at 3pc and its public debt at 60pc of GDP, earning Georgia the credibility that has facilitated strong foreign direct investment averaging 8.5pc of GDP over the last 10 years. Georgia’s swift rebound from the pandemic and the initial shock of Russia’s invasion of Ukraine testifies to the country’s gathering economic resilience. It recorded economic growth of 10.5pc and 10.1pc in 2021 and 2022, and, against the grain of the global slowdown, has continued to expand rapidly, with preliminary growth for Q1 of 7.2pc. Fitch Ratings upgraded Georgia’s sovereign credit rating outlook from stable to positive earlier this year, attributing the country’s revised status to ‘exceptionally strong’ GDP, and rigorous fiscal and monetary discipline. Georgia’s strong fundamentals have allowed for continued investment in the country’s infrastructure, which grew at a record 6.7pc last year. Its progress has earned it favourable ratings across a range of international indices, particularly in regard to economic transparency. Georgia ranked seventh of 190 nations in the World Bank’s 2020 ease of business index,, came in first in the 2021 Open Budget Survey published by the International Budget Partnership, and is ranked 17th in the latest Transparency in the Time of War index compiled by the European Research Centre for Anti Corruption and State-Building. The country’s ongoing liberalisation programme earned it 15th place in the Fraser Institute’s 2022 Economic Freedom Annual Report, and 21st in last year’s Heritage Foundation Index of Economic Freedom. A thriving energy market Georgia’s growing economy has generated the surging demand for energy to which BLOE wants to make an ever greater contribution. Since 2012 Georgia has been a net importer of electricity, and its deficit is growing, expected to reach more than 3 TWh by 2030. In 2020 the country imported 99.7pc of its natural gas and 97.8pc of its oil. Only about a third of Georgia’s renewables potential has so far been tapped, leaving the country’s grid dependent on oil and gas. And with Georgia positioned at the heart of the Transcaucasian region that reaches from the shores of the Black Sea to the Caspian, rich in hydrocarbons from the Eocene, Cretaceous, Miocene and Oligocene eras, there is plenty of it. Soviet exploration and production planted the seeds for today’s infrastructure, now a highly developed complex of pipelines running through the Transcaucasus, notably the Baku-Tbilisi-Ceyhan Pipeline which moves Azeri crude to the Turkish Mediterranean and the Black Sea, and the South Caucasus Pipeline, which carries gas from Azerbaijan to Turkey: both pipelines run close to BLOE’s assets. Significant new projects include the Trans-Anatolian Pipeline (TANAP), inaugurated in 2019, and the Black Sea underwater electric cable project, signed-off late last year, linking Azerbaijani energy resources with Europe through Georgia and Turkey. Major export terminals are located at the Black Sea ports of Supsa and Poti. Operations employing the full range of modern exploration and production technologies, including 3D seismic, stimulation and directional and horizontal drilling, are facilitated through a regulatory environment ensuring an open energy market and a stable framework for Production Sharing Contracts. Georgia’s untapped resources and established infrastructure have drawn increasing interest from the world’s largest energy companies. BP has been a lead investor in the Baku-Tbilisi-Ceyhan, South Caucasus, and Baku-Supsa pipelines, in the past few years committing another $2bn to the Trans-Adriatic line, Georgia’s biggest ever inward investment. ExxonMobil has signed an agreement with the Georgian government to carry out a comprehensive review of western Georgia’s hydrocarbon resource potential. And BLOE acquired its largest production and exploration blocks from SLB (then known as Schlumberger). BLOE is integrated into the country’s energy network, both through the company’s ongoing production and a Memorandum of Understanding with the Ministry of Economy and Sustainable Development of Georgia supporting continued exploration and production, and progress towards a long-term gas offtake agreement. Georgia after Ukraine Since independence Georgia has pursued political as well as economic liberalisation. The country has a parliamentary system, parties exchanging power over the past 20 years through elections judged free and fair by independent observers. Long identifying with Europe, the nation has established close ties with the EU, submitting a formal application for membership after the Ukraine invasion. It is a member of the EU’s Eastern Partnership together with Armenia, Azerbaijan, Belarus, Moldova and Ukraine, and has signed an Association Agreement with Brussels, entering into a Deep and Comprehensive Free Trade Area. Georgian citizens have had free visa entrance to the Union since 2017. Public opinion is clearly oriented to the West: 47pc of Georgians believe their country’s foreign policy should be ‘pro-Western&# But these aspirations are complicated by Georgia’s relationship with its Russian neighbour, the key to understanding nuances of the country’s politics that can perplex observers. Georgia’s response to the Ukraine conflict, for example, which has been the subject of much commentary, must be understood in the context of the brief war it fought with Russia in 2008, which ended with the annexation of the Abkhazia and South Ossetia regions, populated by a significant number of Russian speakers. The rest of Georgia, though part of the former Soviet Union, has never had the same historic significance for Russia as Ukraine or Belorussia. In many respects Georgia’s measures are aligned with the broader international response. The country has supported the UN Resolution condemning Putin’s aggression, the suspension of Russia’s membership in the Council of Europe, and the launch of the International Criminal Court’s probe into alleged war crimes in Ukraine. The Georgian National Bank has cooperated with international resolutions, and, as noted, the country followed Moldova and Ukraine in applying for EU membership. But it has also followed its own path, the ruling Georgian Dream government resisting Ukraine’s call to impose sanctions on Moscow, arguing that such ‘unproductive& BLOE’s opportunity This, then, is the complex but stable environment in which BLOE is establishing itself as a major energy supplier. Georgia continues to forge its own path, developing a liberal economy and democracy with due sensitivity to its geographic and cultural location somewhere between east and west. Our second article will further detail the company’s strategy. To summarise, the company has a 100pc working interest in five Georgian onshore licence blocks, including IX and XIB, where production during the 1980s peaked at 67,000 bopd. BLOE is currently producing across six fields within four licenses, pursuing a four-project strategy guided by the principles of low risk development and appraisal, and high impact exploration. Project I is focused on a region intersecting the company’s West Rustavi and XIF blocks developing 3C Contingent Resources of 27.5 MMbbls. Project II is evaluating large, undrained areas of the deeper zones of the Middle Eocene reservoir in the Patardzeuli filed on the XIB licence, testing 200 MMbbl 2C Contingent Resources. Project III is appraising the commercialisation of substantial contingent resources of gas – 984 BCF 2C Contingent Resources – in the XIB & XIF licenses, within the Lower Eocene, Paleocene and Upper Cretaceous geological formations. And Project IV is focused on exploration of extensive structures contiguous to a proven 200 M Mbbls field. The first phase of Project I secured back-to-back drilling success through the company’s JKT-01Z and WR-B01Za wells, allowing BLOE to record Q2 production of an average 664 boepd, and to go ahead with the drilling of two further side-tracks and a new well. The latest well, WR-34Z, reached total depth last week and testing is about to commence. Our previous coverage of BLOE has offered extensive coverage of the company’s operational progress. Look out for much more detail in our next article. At the time of writing BLOE’s price was 1.3p and its market cap £8.5m |
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