Block Energy CEO confident on hitting break-even production rates

Georgian-focused oil and gas company Block Energy was confident it would be able to reach breakeven production rates at all of its three licenses in the near-term, allowing it to transform itself into a "highly profitable oil and gas company".

Chief executive Paul Haywood told shareholders at the group's annual general meeting on Thursday that considerable investments made across its licences by previous operators - in particular, the drilling of multiple wells and the acquisition of seismic data - had allowed it to begin its work programmes with minimal outlay.

"Since our IPO in June we have secured rigs and equipment at more attractive rates than originally anticipated, identified an innovative perforation drilling technology with the potential to significantly increase flow rates and assembled experienced teams in Georgia and London," Haywood added.

The CEO assured investors that work at its Norio, Satskhenisi and West Rusavi fields had got off to an "excellent start".

"With operations now well underway we believe the weeks and months ahead will prove our confidence in our strategy is well founded."

"I am disappointed the market has not yet responded to the progress we have made, but as operations at Norio and West Rustavi progress investors will have opportunities to recognise our inherent value, strong balance sheet and re-rating potential."

As of 1040 GMT, Block shares had climbed 5.56% to 2.85p.