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Block Energy PLC on Wednesday said that SLB, the biggest offshore drilling contractor in the world according to Bloomberg, had decided against exercising its rights to buy 108 million shares in the business.
Block Energy is an oil and gas company focused on exploration and production in Georgia.
Company shares were trading 16% higher at 1.48 pence each in London on Wednesday morning.
In 2020, a total of 120 million options were granted as consideration for the acquisition of the Schlumberger Rustaveli Company Ltd, which held Georgia’s most productive license, Block XIB.
Of these, 12 million options were assigned by SLB to Jindal Petroleum, and are due to expire November 30, 2023.
Block Energy said that its acquisition of SRCL helped to secure additional production, material additional oil reserves, significant gas resources, oil inventory, materials, and a $133 million cost recovery pool, all while preserving its cash position for further growth.
‘This is very good news for the company and shareholders in Block. The result for Block and its shareholders is a significant gain in value and reduction in dilution, both contributing to our continued commitment to maximising value, for all shareholders, whilst we advance through our 3-project strategy,’ said Chief Executive Officer Paul Haywood.
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