LONDON (ShareCast) - (Sharecast News) - Block Energy reported progress on phase two of its carbon capture and storage (CCS) project in Georgia on Monday, with key subsurface uncertainties now resolved ahead of a planned pilot carbon dioxide injection into the Patardzueli Middle Eocene reservoir.
The AIM-traded company said results from recent analysis of reservoir rock samples exceeded expectations, confirming the suitability of the formation for carbon dioxide mineralisation at shallower depths than initially forecast.

That, the board said, was expected to lower project costs and enhance economic feasibility.

A successful water injection test demonstrated pressure communication between two existing wells - PAT-92, a previously abandoned production well, and PAT-49, currently used for water disposal.

The wells would be used respectively as the injector and monitoring sites for the pilot test, supporting the project's monitoring and verification requirements.

Work was now focussed on redesigning the existing wells and finalising surface facility infrastructure at the PAT-49 site.

The pilot injection, which aimed to demonstrate permanent mineralisation and storage of carbon dioxide, remained scheduled for mid-2025.

Block Energy said it was funding the programme in collaboration with Indorama, its partner in the project.

"We continue to make good progress with our CCS project, with the main subsurface uncertainties now resolved," said chief executive officer Paul Haywood.

"This was achieved through operational and laboratory work.

"The original analysis undertaken in the fourth quarter of 2023 with respect to the project's storage potential, has been validated."

Haywood said the company was "excited" for the next stage in the project, being the injection of carbon dioxide into the reservoir, which would occur later in the year once the surface facility modifications had been completed by Block's engineering team, and once it concluded on the methodology to be used to verify the mineralisation of carbon dioxide.

"With the project broadly on schedule and within budget, I look forward to updating shareholders in due course."

At 1136 BST, shares in Block Energy were down 4% at 0.91p.

Reporting by Josh White for Sharecast.com.

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