Block Energy Plc: Proposed Placing to Raise Up to GBP 12m Million

Source Press Release
Company Block Energy Plc 
Tags Equity Financing, Financing
Date May 15, 2019

Block Energy PLC, the exploration and production company focused on the Republic of Georgia, today announces its intention to conduct an accelerated bookbuild (the "Bookbuild") to raise gross proceeds of up to approximately GBP 12m by way of a placing (the "Placing") of new ordinary shares of £0.0025 each in the Company ("Ordinary Shares").

The Bookbuild will open with immediate effect following release of this announcement. A further announcement confirming the closing of the Bookbuild, the number of new Ordinary Shares issued as part of the Placing and the price being paid per new Ordinary Share (the "Placing Price") is expected to be made in due course.

Mirabaud Securities Limited ("Mirabaud") is acting as sole bookrunner in relation to the Placing.

Expected Use of Proceeds

The Company is undertaking the Placing in order to fund the acceleration of its defined development strategy in relation to its rights under the West Rustavi PSA. Over the next 12 months, the Company intends to carry out the following works in West Rustavi:

·      Drill up to four horizontal sidetracks to scale up production and fund future capital programmes.

·      Expand production facilities to increase capacity to 4,000 - 5,000 bbl/d.

·      Acquire 3D seismic to provide critical understanding of subsurface.

·      Appraise two existing gas discoveries.

·      Drill one new well targeting gross contingent 2C gas resource of 608 BCF.

Within the next 24 months, the Company aims to bring West Rustavi gas reserves into production, to continue oil development and to secure additional licences in Georgia and the wider region.

Additional Information on the Placing and the Bookbuild

The Placing Price and the final number of new Ordinary Shares to be issued pursuant to the Placing (the "Placing Shares") will be determined following the close of the Bookbuild. The Placing Shares, when issued, will be fully paid and will rank pari passu in all respects with the existing Ordinary Shares.

It is intended that up to 42,820,000 of the Placing Shares will be issued and allotted following close of the Bookbuild pursuant to the existing authority of the Directors to issue and allot Ordinary Shares free from pre-emption rights (the "Firm Placing Shares") and that the issue and allotment of the remainder of the Placing Shares shall be conditional on the approval of certain resolutions by the shareholders of the Company (the "Conditional Placing Shares") which will be sought at a general meeting of the Company, details of which can be found below.

The timing of the closing of the Bookbuild and allocations of Placing Shares are at the discretion of Mirabaud and the Company. The Placing Price and details of the results of the Placing will be announced as soon as practicable after the close of the Bookbuild. Your attention is drawn to the detailed terms and conditions of the Placing described in the Appendix (which forms part of this announcement).

By choosing to participate in the Placing and by making an oral and legally binding offer to acquire Placing Shares, investors will be deemed to have read and understood this announcement in its entirety (including the Appendix) and to be making such offer on the terms and subject to the conditions in it, and to be providing the representations, warranties and acknowledgements contained in the Appendix.

Further updates will be provided as and when appropriate.

Circular and notice of general meeting

A circular containing further details of the Placing and notice of a general meeting of the Company expected to be held at 10.00 a.m. on 4 June 2019 to, inter alia, pass the resolutions required to implement the Conditional Placing, is expected to be published shortly after the completionof the Bookbuild and to be despatched to Shareholders as soon as practicable thereafter. Following its publication, the circular will be available on the Company's website at .

Unless otherwise defined, capitalised terms in this announcement (including the Appendix) have the same meaning ascribed to them as in the Company's Admission Document dated 4 June 2018.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd