Commercial Carbon Capture and Storage Opportunity

Block Energy plc, the development and production company focused on Georgia, is pleased to announce a study identifying a Carbon Capture and Storage ("CCS") opportunity within the Company's Block XIB with the potential to support a major net-zero CO2 industrial hub.

The study, commissioned by the Company, estimates a CO2 storage capacity ranking - at both reservoir and basin scales - amongst the highest in Europe. The reservoir scale storage is estimated at 256 million metric tonnes, equivalent to offsetting emissions from 55 million cars, and the basin scale at up to 8.7 gigatonnes, equivalent to offsetting emissions from Turkey for 20 years.

The research suggests Block XIB is best suited to the Mineral Trapping (Mineralisation) method whereby CO2 is injected with water and mineralises as solid carbonates, a technique successfully used in Iceland to permanently inject 100,000 tonnes of CO2 to date into basaltic rock.

The Middle Eocene volcaniclastics facilitate the movement and efficient containment of injected CO2 and sections are abundant with Zeolites, highly reactive minerals, enriched with substantial calcium, that enhance the potential for successful and sustainable CCS by Mineralisation.

These and other supportive geological features, including an active aquifer and ideal pressure and temperature conditions, indicate the possibility for a very rapid rate of carbonation: initial calculations show 95% mineralisation of CO2 within 250 days, compared to 1,000 years in sedimentary systems. Carbon storage capacity could be further enhanced by localised dissolution of fractures, increasing pore space and pore volume.

The study, commissioned in the course of the Company's Project III development planning, was undertaken by Oilfield Production Consultant ("OPC"), a consultancy recognised internationally for its expertise and experience in this field.

OPC have worked on the White Rose, Golden Eye, Gorgon and Viking projects, as well as on projects in the Gulf of Mexico. The study was led by Professor Eric Oelkers, a recognised expert in the field of water-rock interactions.

Block Energy plc's Chief Executive Officer, Paul Haywood, said:

"The CCS study opens another significant commercial opportunity for the Company while underlining our commitment to sustainability.

"The study highlights that Block XIB's storage potential could be amongst the largest in Europe, indicating the prospect of a major net-zero industrial hub within central Georgia - of interest to the hydrogen, fertiliser, steel and refined petroleum products industries - close to the XIB license."

THIS ANNOUNCEMENT CONTAINS INFORMATION PREVIOUSLY DEEMED BY THE COMPANY TO BE INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. WITH THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, SUCH INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Glossary

• bbls: barrels. A barrel is 35 imperial gallons.
• Bcf: billion cubic feet.
• boe: barrels of oil equivalent.
• boepd: barrels of oil equivalent per day.
• bopd: barrels of oil per day.
• Mbbls: thousand barrels.
• Mboe: thousand barrels of oil equivalent.
• Mcf: thousand cubic feet.
• MD: measured depth.
• MMbbls: million barrels.
• MMboe: million barrels of oil equivalent.
• MMcf: million cubic feet.
• TVD: True Vertical Depth.