Block Energy PLC on Thursday said it terminated its salary sacrifice scheme on Friday last week, as its financial position has improved.
Block Energy is a London-based oil and gas exploration and production company focused on Georgia. Project I is the development of the Middle Eocene oil reservoir in the West Rustavi-Krtsanisi field, which is divided into eight development areas.
Shares in the company were up 5.4% to 1.26 pence each in London on Thursday morning.
The salary sacrifice scheme was originally put in place in April 2020, following a collapse of the Brent price and operational issues due to the global Covid-19 pandemic, to preserve capital and ensure that completion and integration of the Schlumberger transaction was achieved.
Block Energy said well WR-B01Za continues to produce naturally at an average rate of 274 barrels of oil per day without the need for artificial lift. It added that this provides ‘great confidence’ that further horizontal wells into the West Rustavi/Krtsanisi Middle Eocene reservoir will be successful and Project 1 achieved.
Chief Executive Officer Paul Haywood said: ‘I’d like to extend a sincere thank you to all the employees and directors who participated in our salary sacrifice scheme. 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.’
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