R8��������

Block Energy plc, the production and development company focused on Georgia, has reached a significant milestone in Phase 2 of its CCS project, with the key process-specific subsurface uncertainties, ahead of the pilot test, having been resolved. Work has shifted to the redesign of existing non-producing wells, and implementation of the pilot injection of CO₂ into the reservoir.

Work has been ongoing since November 2024 on Phase 2 of the CCS project. Phase 2 comprises of desktop, laboratory and field work, aimed at undertaking a pilot injection into the Patardzueli Middle Eocene reservoir, to prove mineralization and permanent storage of CO₂, and therefore the feasibility of an industrial-level sequestration project. Block Energy has sufficient cash resources to fund the pilot program in collaboration with Indorama, a major international petro-chemical company, who are Block’s partners on this project.

Highlights

• Results from the analysis of Middle Eocene reservoir rock samples exceeded expectations. They suggest the reservoir is suitable for CO₂mineralization at depths shallower than forecast, reducing expected costs.
• A successful water injection test showed that well PAT-92 (an abandoned former production well) and well PAT-49 (currently used for water disposal) are in pressure communication and therefore can be used as injector and monitoring wells (critical for the monitoring and verification plan) for the pilot test.
• Work is ongoing to finalize the surface facility design at the PAT-49 well site as well as the monitoring and verification plan to commence injection of CO₂into the reservoir in mid-2025.

“We continue to make good progress with our CCS project, with the main subsurface uncertainties now resolved," said Paul Haywood, CEO of Block Energy. "This was achieved through operational and laboratory work. The original analysis undertaken in Q4 2023 with respect to the project’s storage potential, has been validated.

“We’re excited for the next stage in the project, being the injection of CO₂ into the reservoir, which will occur later this year once the surface facility modifications have been completed by our engineering team and once we conclude on the methodology to be used to verify the mineralization of CO₂. With the project broadly on schedule and within budget, I look forward to updating shareholders in due course.”