Block Energy agreed a convertible loan to Pilgrim Exploration that, on conversion, will deliver Block a 76.5% economic interest in the Ndjila and Mpari production sharing contracts offshore Gabon and adds a new jurisdiction to its Georgia-focused portfolio.
Under the transaction structure Pilgrim will remain operator prior to conversion, the loan will be secured by debentures and share charges over Pilgrim and its subsidiaries and includes an interim non‑voting Class B share mechanism while Block provides up to US$4m of non‑cash technical support, Block said.
The licences cover 5,331 km2, host four historical discoveries drilled by Texaco, Shell and Tullow, including the Iguega discovery, which tested at 3,300 bopd, and benefit from near‑full modern 3D seismic coverage acquired in 2017 with mapped pre‑ and post‑salt upside.
Block will fund part of the transaction via an accelerated placing and a Retail Offer for existing shareholders of up to 13.64m shares to raise £150,000, implying an issue price of c.1.1p per share and a roughly 8.3% discount to the 1.2p mid‑market close on 24 April.
Pilgrim's most recent filed accounts for the 17 months to 31 December 2024 showed a loss before tax of £32,689, turnover of nil and net liabilities of £53,385, noting that those accounts pre‑date the grant of the PSCs.
Block says the initial programme, to be delivered by Pilgrim with Block oversight, will focus on subsurface interpretation, refinement of the Iguega development concept, evaluation of the three other discoveries and licence‑wide prospect ranking ahead of asset‑level finance.
Separately, Block Energy announced a £150,000 raise via Winterfloods WRAP retail, offering up to 13.64m new shares at an issue price of 1.1p per share. of raising up to £150,000. The WRAP is being offered to existing UK retail shareholders.
