Block Energy Provides Update on CCS Project
Why we think this is neutral
This RNS announcement provides an update on Block Energy's CCS project, which does not fall into any of the mandatory news categories. The update indicates progress on resolving key subsurface uncertainties and preparing for the next phase of the pilot injection. While the news is positive for the company's CCS efforts, it does not contain any financial figures or significant business updates that would warrant a stronger sentiment score.
Key Points
- Results from the analysis of Middle Eocene reservoir rock samples exceeded expectations, suggesting the reservoir is suitable for CO2 mineralisation at shallower depths than forecast, reducing expected costs.
- A successful water injection test showed that two wells are in pressure communication and can be used as injector and monitoring wells for the pilot test.
- Work is ongoing to finalise the surface facility design and monitoring and verification plan to commence injection of CO2 into the reservoir in mid-2025.
Summary
Block Energy plc (AIM: BLOE), the production and development company focused on Georgia, has announced good progress on Phase 2 of its CCS project, with the key process specific subsurface uncertainties, ahead of the pilot test, having been resolved. The company has sufficient cash resources to fund the pilot programme in collaboration with Indorama, a major international petro-chemical company, who are Block's partners on this Project.