Block Energy making its first foray into Gabon’s offshore oil realm

April 28, 2026, by Melisa Cavcic

AIM-quoted independent oil and gas production and development company Block Energy has made a move to enter a new geographic area through an investment related to two production sharing contracts (PSCs), which will enable it to expand its portfolio to encompass two offshore licenses in Gabon.

Ndjila and Mpari discovery and prospect map; Source: Block Energy

Block Energy has entered into a conditional agreement with Pilgrim Exploration for an investment associated with the Ndjila and Mpari production sharing contracts in Gabon to be funded by a proposed equity fundraising of new ordinary shares of $6.3 million (around £4.65 million) to be completed in two closings.

Paul Haywood, Chief Executive Officer of Block Energy, commented: “This transaction represents an excellent value-accretive acquisition of discovered oil and high-potential exploration in a well-known oil producing jurisdiction. With an excellent data set and highly encouraging drilling activity by former operators we believe that the assets combine an anchor development opportunity with significant upside and broad running room.

“With recent farm-in progress on both Project III and Project IV in Georgia, we believe that the Gabon transaction provides jurisdictional and geological diversification as well as genuine near-term growth potential for the portfolio and I look forward to updating shareholders on the progress of the technical work programme in due course.”

The Gabon transaction adds a new value proposition to the company’s existing Georgia assets, with 5,331 square kilometers across two contiguous offshore licenses. Given the four historical oil discoveries across the licenses plus broader pre- and post-salt upside, the near-term focus is on the evaluation of the discovered resources, development planning, and partner discussions for drilling.

The company claims that the deal represents an attractive low-cost entry into assets with discovered oil and significant potential upside in an established jurisdiction. This acquisition is supported by Block’s existing technical and operational capability and leverages the board’s experience in West Africa to deliver value to shareholders.

Gabon license map showing Pilgrim acreage and select other operators; Source: Block Energy

The proposed fundraising of $6.3 million at 1.1 pence per share comprises a placing to be conducted by way of an accelerated bookbuild to be launched immediately following the announcement and a retail offer of up to 13,636,363 shares to raise £150,000 for existing shareholders only.

A convertible loan to be made to Pilgrim, which holds a 90% interest in the underlying Ndjila and Mpari PSCs in Gabon, will result in Block holding a 76.5% economic interest in the PSCs, subject to obtaining any required regulatory approvals. The remaining 10% in both licenses is held by the State of Gabon.

Simon Barry, Chief Executive Officer of Pilgrim Exploration, remarked: “First, we would like to thank the Gabonese Ministry of Oil and Gas for the excellent opportunity they have afforded Pilgrim and for the staff of the DGH, whose dedication and professionalism was instrumental in Pilgrim securing the PSCs.

“Second, we welcome Block Energy, who from the outset saw the potential in Gabon and particularly Pilgrim’s assets. We look forward to building on this partnership and prosecuting the work programme for the benefit of all.”

The Ndjila and Mpari PSCs are located offshore Gabon in the North Gabon basin, a mature hydrocarbon province with established operators, export routes, and a long production history. The licenses contain four historical oil discoveries drilled by prior operators, including Texaco, Shell, and Tullow.

The Iguega field serves as the anchor field within the acquired portfolio, with historical work completed by Shell on a development concept and the discovery well testing at rates of 3,300 bopd. The licenses also include three other oil discoveries that Block will assess for potential follow‑on development.

The area is perceived to offer significant potential upside, with multiple mapped leads and prospects identified in both pre‑ and post‑salt sections. The PSCs are supported by a substantial dataset, including near‑full coverage with a modern 3D seismic survey acquired in 2017, which is expected to materially support prospect maturation and development planning within Pilgrim’s work program.

The recent investments by companies such as Exxon, BP, and Trafigura in Gabon are seen to provide confidence in the country’s subsurface and surface merits. Block believes that a strong interest in the Ndjila and Mpari PSCs will be generated for asset-level development finance following the technical work program. Under the terms of the convertible loan agreement, Pilgrim will remain the operator of the Gabon PSCs, with technical support from the AIM-listed player.

The initial work program, which has been approved, includes subsurface interpretation and data integration; refinement of the Iguega development concept; evaluation of the three other oil discoveries: Ekouata, Topaz, and Pilote; license-wide mapping, including pre-salt, and prospect ranking; and the preparation of the assets for asset-level finance for development and exploration work programs.

Following a successful conclusion of the fundraising, Block will lend up to $6 million to Pilgrim to fund PSC-related obligations and the initial work program. The company may elect to convert the loan into an 85% interest in Pilgrim, an 85% interest in the PSCs, or another lawful alternative, subject in each case to the agreed mechanics and all necessary government and regulatory approvals, if required.

These conversion options equate to the AIM-listed firm’s interest becoming 76.5% in the PSCs, with the rest held by Pilgrim (13.5%) and the State of Gabon (10%). Block will provide non-cash support to Pilgrim of up to $4 million by making its staff and resources available.