Block Energy Allots 371,657 Shares After Option Exercise; AIM Listing Expected by 30 July 2026

Details on Share Issuance and AIM Admission Schedule

Following the exercise of nil-cost share options granted under its Capital Structure Simplification initiative, Block Energy has allotted 371,657 ordinary shares with a nominal value of 0.25p each. This initiative, publicly disclosed on 14 November 2025, aims to streamline the company’s equity structure and reward participants through the allocation of shares at no cost.

The company has applied for these shares to be admitted to trading on AIM, with admission expected to finalize at or around 8:00 a.m. on 30 July 2026. From that date, the shares will be officially listed and freely tradable on the Alternative Investment Market alongside existing ordinary shares. These new shares carry identical rights, including dividend entitlements and voting power, ensuring no preferential treatment within the capital structure.

Block Energy’s Asset Portfolio in Georgia and Gabon

Block Energy operates a multi-project development and production model with assets spanning the South Caucasus and West Africa. In Georgia, the company holds interests in seven Production Sharing Contracts covering 4,256 square kilometres centrally located in the country. These assets form the core of Block Energy’s production and near-term development strategy, operating within a well-established regulatory and commercial framework.

Key licences in Georgia include XIB and XIF, which host Project III—a major development containing 2.77 trillion cubic feet (TCF) of 2C gross contingent gas resources across the Patardzueli-Samgori, Rustavi, and Teleti fields. Additionally, the South Dome area holds 574 billion cubic feet (BCF) of 2U gross prospective resources for future exploration and appraisal. Project III carries an estimated NPV10 of approximately US$2.2 billion based on 2024 technical assessments by IER and OPC, supported by internal company estimates. This resource base is pivotal to Block Energy’s revenue and cash flow growth in coming years.

Strategic Expansion into Offshore Gabon and West Africa

In April 2026, Block Energy expanded its footprint through a secured convertible loan with Pilgrim Exploration Limited, acquiring a 76.5% indirect economic interest in two offshore Gabon Production Sharing Contracts: Ndjila (CD2) and Mpari (CD3). These licences cover a combined area of 5,331 square kilometres within a proven hydrocarbon fairway in the Gulf of Guinea.

The Ndjila and Mpari licences include four historical oil discoveries—Iguega, Topaz, Ekouata, and Pilote—offering near-term development and production potential. Beyond these discoveries, the licences possess significant pre- and post-salt exploration opportunities, supporting long-term production growth. This entry into Gabon marks Block Energy’s first offshore sub-Saharan African oil production venture, diversifying its commodity and regional exposure by complementing its gas-focused Georgian operations.

Multi-Project Strategy and Funding Model

Block Energy’s corporate strategy revolves around advancing assets at various maturity stages across multiple geographies and hydrocarbon types. This multi-project approach aims to balance production growth from new developments, redevelopment of existing fields, exploration success, and commercialisation of proven and contingent gas resources. The goal is to generate sustainable cash flows while maintaining exposure to exploration upside.

The company’s funding strategy includes partner participation where appropriate, carried work programmes to reduce capital expenditure, and reinvestment of revenue from producing assets. This minimizes reliance on external capital, enabling management to focus on shareholder returns and operational progress. This approach has supported advancement of Project III in Georgia alongside establishing a presence in Gabon’s exploration and production sector.

Post-Admission Voting Rights and Share Capital

After admission of the 371,657 shares on or around 30 July 2026, Block Energy’s total issued share capital will be 1,469,751,612 ordinary shares, each with one voting right. The company holds no shares in Treasury, so the total voting rights equal the number of issued shares. This figure will be used as the denominator for shareholder notifications under the FCA’s Disclosure Guidance and Transparency Rules.

Shareholders must notify the company and market if their holdings cross thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30%, 50%, or 75%. The updated voting rights figure will replace previous figures from the admission date onwards.

Rationale Behind Capital Structure Simplification

The nil-cost share options exercised were granted to employees, contractors, and other stakeholders as part of the Capital Structure Simplification programme announced on 14 November 2025. This equity incentive aligns management and workforce interests with shareholder value creation without immediate cash outlay, as options are exercised at no cost.

The exercise indicates confidence in Block Energy’s strategic direction, with option holders—typically senior management and key staff—viewing the shares as fairly valued or offering upside potential. Coordinating the exercise with AIM admission ensures transparency and compliance with exchange rules, granting new shares equal listing and trading rights.

Georgia Operations and Regional Energy Impact

Block Energy’s seven Production Sharing Contracts in Georgia covering 4,256 square kilometres establish the company as a key contributor to the country’s energy security and economic development. Operating near Tbilisi facilitates regulatory engagement and stakeholder management. Georgia’s hydrocarbon sector is a significant source of fiscal revenue and employment, and Block Energy’s Project III development and ongoing production support national energy independence and regional economic benefits.

The company’s proximity to Tbilisi enables strong relationships with local authorities and communities. The established infrastructure and skilled workforce in the South Caucasus provide a stable platform for executing development and production plans. As geopolitical and energy market conditions evolve in Europe and beyond, Block Energy’s Georgian assets may gain strategic importance.

Investor Considerations and Outlook

Investors should watch for updates on Project III’s development milestones, including engineering design, regulatory approvals, and financing for construction. Progress in Gabon through the Pilgrim convertible loan arrangement is also critical, with attention on asset evaluations, carried work programmes, and potential partnerships. Commercial production decisions or farm-downs could significantly affect capital structure, shareholder composition, and share price.

The immediate share price impact was not disclosed publicly. Investors should monitor Block Energy’s cash position, expenditure, and capital allocation as it advances multiple projects at varying stages. Announcements on resource upgrades, new developments, acquisitions, or disposals will be material. Regulatory changes in Georgia or Gabon and macroeconomic shifts affecting energy prices may also influence operational and financial outcomes.

Regulatory Compliance and Disclosure

As an AIM-listed entity, Block Energy complies with Listing Rules, Disclosure Guidance and Transparency Rules, and FCA regulations. This announcement provides formal disclosure of share allotment and admission details, ensuring equal, timely access to material equity information. The updated voting rights figure (1,469,751,612 shares) assists shareholders in meeting FCA notification requirements.

Spark Advisory Partners Limited (nominated adviser) and Tennyson Securities (corporate broker) oversee compliance with fundraising, share issuance, and listing rules. Celicourt Communications, as financial PR adviser, supports transparent investor communication. These advisers help safeguard the company and shareholders against regulatory or disclosure breaches.