Termination of Salary Sacrifice
Issue of Options and Shares and PDMR Dealing
Termination of the Salary Sacrifice Scheme
Block Energy plc, the development and production company focused on Georgia, is pleased to announce that it is terminating the Salary Sacrifice scheme as of 1st April 2023. The decision is based on the Company’s improved financial position. Well WR-B01Za continues to produce naturally at an average rate of 274 boepd (247 bopd oil & 4,700 m3/d gas) without the need for artificial lift. The well result, combined with our continuing improved understanding of the reservoir gained by the calibration of our detailed geophysical studies, provides great confidence that further horizontal wells into the West Rustavi/Krtsanisi Middle Eocene reservoir will be successful and Project 1 achieved.
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.
Commenting, Paul Haywood, Block Energy CEO 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.
“Once again, a heartfelt thank you to all who participated in this important initiative.”
Final Issue under the Salary Sacrifice Scheme
On 5 April 2023, the Company issued nil-cost options over a total of 3,702,501 ordinary shares of 0.25p each (“Options”) to directors and employees. The Options were granted in lieu of cash payment for 40% of salaries and up to 50% of directors’ fees, in accordance with the cash conservation measures announced on 7 April 2020 and subsequent agreements with the employees and non-executive directors for fees to be paid in nil-cost options in lieu of cash payment. The number of shares was calculated by dividing the amount of monthly salary or fee to be paid in Options by the volume weighted average price of the ordinary shares during the calendar month that the services were provided.
Also, pursuant to agreements to exercise options immediately upon grant, on 5 April 2023:
1. Philip Dimmock, Non-Executive Chairman, exercised nil cost options to acquire 724,602 ordinary shares of 0.25 pence each; and
2. Jeremy Asher, Non-Executive Director, exercised nil cost options to acquire 675,423 ordinary shares of 0.25 pence each.
Of the total number of Options granted, 2,097,933 Options were granted to PDMRs, as shown in the table below.
Additionally, on 5 April 2023, the Company allotted 476,388 ordinary shares of 0.25p each to two service providers in lieu of cash settlement for services provided to the Company with a total value of £4,782.93. Of such, 298,805 ordinary shares of 0.25p to a value of £3,000 were allotted to a company controlled by Ken Seymour (Block’s Chief Operating Officer and a PDMR) as payment for services in March 2023.
The Company also allotted 5,613,122 shares of 0.25p each to current and former employees following the exercise of nil cost options that had been granted in lieu of cash payment for bonuses and part of salaries. These shares were settled from shares already issued to the Company’s Employee Benefit Trust.
Application will be made for the admission to trading on AIM (“Admission”) for the 1,876,413 ordinary shares. The ordinary shares will rank pari passu in all respects with the existing ordinary shares of the Company. Admission is expected at 8.00 a.m. on or around 13 April 2023.
Total Voting Rights
Following Admission, the Company’s issued share capital will comprise 689,551,104 ordinary shares with one voting right each. As the Company does not hold any shares in Treasury, the total number of voting rights in the Company is also 689,551,104 and this figure of ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.
For further information please visit http://www.blockenergy.co.uk/ or contact:
Paul Haywood
(Chief Executive Officer)
Block Energy plc
Tel: +44 (0)20 3468 9891
