Block Energy acquires interest in exploration license alongside Georgia’s GOGC

Block Energy plc, the production and development company focused on Georgia, has announced its acquisition of a 10% participating interest in the XIQ Production Sharing Contract (PSC). 

Highlights

• Acquired a 10% participating interest in the XIQ PSC, with an option to increase to 22%.
• XIQ is highly prospective, with 451.5 MMbbl oil and 823.3 BCF gas mean unrisked recoverable prospective resources (DeGolyer and MacNaughton, June 2023).
• Martkopi Terrace prospect is the key target, with 267.2 MMbbl mean unrisked recoverable prospective resources.
• First-year work program includes Martkopi-10 well re-entry and an environmental baseline study.
• Farm-out discussions ongoing, with third parties considering participation in a seismic and drilling work program.
• Transaction fully funded from existing cash resources, with obligations under the Joint Operating Agreement (JOA) fully met.
• Company baseline production remains stable, and above company breakeven.

“We are delighted to acquire an interest in the highly prospective XIQ license, further strengthening our portfolio of strategic, high-impact assets," said Paul Haywood, CEO of Block Energy plc. "The DeGolyer and MacNaughton resource report combined with the 22% participating interest held by Georgia’s national oil company underline the quality of this opportunity. We look forward to supporting our partners at GOGL as they progress discussions with potential farm-in partners.

“Meanwhile, our stable production base continues to underpin a strategy that balances high-impact appraisal and exploration objectives with financial discipline. This year is shaping up to be an exciting one for the Company, and we look forward to providing further updates soon.”

Background

The XIQ licence is located north of Block’s existing XIB PSC and contains significant exploration potential, with an independent resource report by DeGolyer and MacNaughton (2023) estimating mean unrisked recoverable prospective resources of 451.5 million barrels (MMbbl) of oil and 823.3 billion cubic feet of gas.

The XIQ PSC is operated by Georgian Oil and Gas Limited (GOGL), alongside the State oil company of Georgia, Georgian Oil and Gas Corporation (GOGC). GOGL is currently in advanced discussions with multiple parties regarding a potential farm-out of the license.