Block Energy pulls pin on Covid salary sacrifice scheme

6th Apr 2023 15:36

(Sharecast News) - Georgia-focussed developer and producer Block Energy announced the termination of its salary sacrifice scheme on Thursday, effective from 1 April.

The AIM-traded firm said the decision was made due to its improved financial position.

It initially implemented the scheme in April 2020 in response to the collapse of the Brent price in the early stages of the Covid-19 pandemic, and resulting operational issues, in a bid to maintain capital and ensure the completion and integration of the Schlumberger transaction.

The announcement came as Block Energy's well WR-B01Za continued to produce naturally at an average rate of 274 barrels of oil equivalent per day, consisting of 247 barrels of oil and 4,700 cubic metres of gas.

Block said the well had not required artificial lift, and combined with its improved understanding of the reservoir gained through detailed geophysical studies, it provided it with confidence that further horizontal wells into the West Rustavi-Krtsanisi Middle Eocene reservoir would be successful.

"I'd like to extend a sincere thank you to all the employees and directors who participated in our salary sacrifice scheme," said chief executive officer Paul Haywood.

"The scheme was put in place during the global pandemic to preserve capital and has since helped the company in developing its strategy and undertaking capital investment in the assets.

"Given the latest positive well results, which support our cash position, we have decided to terminate the salary sacrifice scheme."

At 1512 BST, shares in Block Energy were up 20.83% at 1.45p.

Reporting by Josh White for Sharecast.com.