Report indicates significant natural gas resources in Block Energy-operated fields in Georgia

February 11, 2024

(WO) – Block Energy plc, a development and production company in Georgia, announced an Independent Engineering Report indicating over 1 Tcf of 2C contingent natural gas resources in the Patardzueli and Samgori fields in license XIB with a Net Present Value of more than $500 million.

Source: Block Energy

Report highlights include:

  • Independent Engineering Report (IER) by a leading geoscience and reservoir engineering consultancy covering the Lower Eocene and Upper Cretaceous reservoirs in the Patardzueli-Samgori field.
  • IER indicates over 1 Tcf of 2C Contingent Resources with a NPV exceeding $500 million.
  • Block’s subsurface work and proposed development plan validated.
  • Key pathway document for Project III farm-out process.
  • Prospect of increased contingent resources in proven natural gas resources in the same reservoir sequences across additional fields in licenses XIB and XIF.

Project III background. The company’s Project III is focused on the appraisal and development of natural gas resources within the Lower Eocene and Upper Cretaceous reservoirs.

The reservoirs contain extensive gas-bearing natural fracture systems hosted by a stratigraphy over one and a half km thick, spanning Block’s XIB and XIF licenses, across three fields, Patardzueli-Samgori, Teleti and Rustavi. The company’s farm-out campaign is supported by the major studies it has undertaken on all three fields, and historic well tests proving the presence of natural gas across each field.

Project III Independent Engineering Report (IER). The IER, covering the Patardzueli and Samgori fields, was undertaken by Oilfield Production Consultants (OPC) Limited, a leading geoscience and reservoir engineering consultancy.

The IER was performed according to Petroleum Resource Management System guidelines. OPC undertook a comprehensive evaluation of Block’s technical work, including geology, geophysics, petrophysics, reservoir engineering, development plan, well design, costings, commercialization and economics.

The report’s volumetric estimates confirm the company’s technical and economic case for the appraisal and development of the Patardzueli and Samgori fields. With this validation of Block’s subsurface and development plan, the IER is a cornerstone document for the Project III farm-out process.

Rustavi and Teleti fields. The IER was commissioned to review Block’s evaluation of the Patardzueli-Samgori Lower Eocene and Upper Cretaceous reservoirs, the primary target for the initial Project III appraisal and development campaign, including the proposed early production facilities associated with the first phase of the development.

In addition, the company has identified substantial proven natural gas resources in the same reservoir sequences in the Rustavi and Teleti fields, opening the prospect of material developments beyond Patardzueli-Samgori.

Block is currently reviewing the internal contingent resource estimates for these fields, employing the same methodologies as used by OPC in the Patardzueli-Samgori IER.

Commenting, Paul Haywood, Block Energy Chief Executive Officer said, “With independent 2C Contingent resources of over 1TCF of gas, robust economics, proximity to Georgia's major industrial hub, strategically located by the South Caucasus Gas pipeline, connecting Turkey to European gas markets, this project has the potential to make a significant regional impact. The gas resources in Project III and across our licences have already been declared a strategic asset by the Georgian state.”

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