Block Energy Share Discussion Threads

[costax1654x] 14/10/2018 22:58

Check the internet!

[costax1654x] 14/10/2018 22:58

CanArgo went bankrupt looking for oil in the same place!

[costax1654x] 14/10/2018 22:45

Existing oil production costs approximately US$25/bbl and is sold at Brent minus US$10/bbl - target of 900 bbls within 24 months.

[costax1654x] 14/10/2018 22:41

Issue of Equity and Convertible Loan NoteAdditionally, the Company announces that it has raised a total of £300,000 (before expenses) through an equity placing and Convertible Loan Note with Mayan Energy plc ("Mayan"), an AIM listed oil and gas company. The closed equity placing for £90,000 at a price of 0.85 pence per share, issues 10,588,235 ordinary shares in the Company to Mayan. The Company, at the same time, has raised a further £210,000 through the issue of an unsecured convertible loan note, to Mayan. The loan note is convertible into equity of the Company at a 10% discount to any price at which Block Energy's shares will be listed on AIM or admitted to trading on any stock exchange and carries a 10% flat coupon.Funds raised from the Placing are to be used to complete a Competent Persons Report ("CPR") on the Rustavi block and for general working capital purposes. The Company has engaged independent consultants, Gustavson Associates of Boulder, USA, to complete the Norio CPR and will expand the scope to include the Rustavi oil and gas field. The CPR is to include an updated Reserve and Resource calculation based on historical data.

[costax1654x] 14/10/2018 22:28

Might test under 2,by the look of the chart

[costax1654x] 14/10/2018 22:27

It was very overvalued at the IPO!

[burtond1] 13/10/2018 20:52

https://twitter.com/tmsreach/status/1051198288718905344?s=21Vote for a write up!!

[babbler] 12/10/2018 12:54

Nice nice nice. Hope no one panic sold

[babbler] 12/10/2018 12:15

And up she goes. Was too cheap

[croasdalelfc] 12/10/2018 12:01

Picked some up at 2.66. Was waiting for a low. Good price. Could treble by Jan

[spangle93] 12/10/2018 10:48

Sorry balance1, I'd forgotten your post. Will mail you over the weekend

[babbler] 12/10/2018 09:54

Crazy price now... Imo

[balance1] 10/10/2018 09:06

Thanks Spangle, you sound pretty on top of the story.

What is your view of the stock? Any thoughts on valuation?

Also how sensitive is it to the oil price?

[babbler] 10/10/2018 08:08

Suggestion on lse that min need funds and selling. Makes sense.

[babbler] 10/10/2018 08:07

Details... Details.... Lol. Sorry got a bit over excited with some posts but the gist is there. Its undervalued. Lots.

[spangle93] 10/10/2018 04:11

Catching up:

post 51: the MOU isn't with one of Europe's largest companies, it's "one of Georgia's largest domestic private gas traders". Bit of a difference in scale.

post 55: It was £5MM raised before expenses, at 4p. Maybe £4MM but that would imply a big chunk of cost? So far the major expense has been to increase West Rustafi to 25% (US$500k), but this was planned before AIM admissions. Phase 1 was supposed to cover 18 months and is fully funded according to their website presentation, while the 10 b/d from Norio is said to be cash positive.

post 59: Where I am in the world, Q4 is here ;-)

post 66: breakeven for Rustafi is quoted at 75-80 bopd in the Vox market

Anyway, here are some notes from the Vox markets talk, which starts in the podcast at around 11:45 mins after Savannah Petroleum, together with my interpretation in italics

1. Bago, pronounced Bargo is the largest Georgian gas purchaser. While a number companies have started up over the last year, they've got a 20 year track record. Minimum delivery is 1000 cu m/day i.e. next to nothing cos even low energy wells should do 10x this, so shouldn't be an issue reaching this threshold

2. There is no realistic upper limit - the capacity mentioned that Bago could receive is more akin to a region or country.

3. Bago has offered to fund the pipeline infrastructure to get the gas to market (no method is specified, but the inference is that this would be through tariff). This importantly gives them alternative means of funding than going to the market to raise through equity, and through having this alternatives they are not held over a barrel (no pun intended) on one particular source.

4. However, the first gas re-test of well 30 in Q1-Q2 next year, so gas revenue is some ways away. Might come forward if SLB well tests do well.

5. The workovers to prepare the two oil wells for sidetrack (which when complete will increase the field stake to 50%) looks now like it might be done by Xmas, postponing drilling of the wells into 1Q19 (after which they would have 75%)

6. There was a little slip of the tongue, as the 900 bbl/day target he said would be reached in 12 months, oh, I mean 18-24 months. My impression was that they believe the 2 sidetracks alone will deliver this.

7. Breakeven at west Rustafi is 75-80 bbl/day. At current costs and (Brent - $10) oil price, they get a net back of $40/bbl ( netback is highly dependent on flow rate, so if they get higher production, the netbacks will increase)

HTH

[babbler] 09/10/2018 11:23

First well is due soon. Wouldn't want to be shorting when that comes in... Imo.

[elan_1] 09/10/2018 10:50

babbler - im not saying it will get that low but i am saying that is where the shorters want it.It is a fact that new IPO companies with low liquidity are the easiest shares to short,but that also works both ways of course because some tasty newsflow can also propel this northwards just as quick.If they can get to end of phase 3 and stay under say 500m shares in issue and hit all resource targets then this will turn into one of the hottest shares next year ( ten bag region ).

[babbler] 09/10/2018 10:37

Lol... OK then. With the news flow hopefully starting ASAP I doubt it but being aim anything is possible.

[elan_1] 09/10/2018 10:21

It looks like the shorters are determined to drive this down ahead of the upcoming events with the drillbit.If they take it under 2p i am going to double up!

A 68% retrace from IPO will put this at around 1.28p which is where strong support
will bounce this IMVHO

[babbler] 08/10/2018 22:40

100 not 10p

[babbler] 08/10/2018 22:40

Break even is 10p bopd. They are planning 900. Ie 9x break even. Ie huge profit to be had. So not out the question.

[euclid5] 08/10/2018 20:15

40p per share x 259m shs = £103m market cap !

where did you get 40p per share target from?

[babbler] 08/10/2018 11:18

Yup. Any share that's rising will get the usual placing deramp. This is close to 52 week low so doesn't need deramping lmao.News will come very soon imo. Of commencement of operations.