Business
Farmout Agreement
Farmout Agreement.
About this update from Block Energy Plc
[{"type":"text","content":"\n \n \n 12 December 2022\n \n \n \n \n \n \n Block Energy plc\n \n \n \n (\"Block\" or the \"Company\")\n \n \n \n Farmout Agreement\n \n \n \n \n \n \n \n \n Block Energy plc, the exploration and production company focused on Georgia, is pleased to announce that binding documentation has been entered into with Georgia Oil and Gas Limited (\"GOGL\") with respect to a farm-out of part of the Company's XIB licence.\n \n \n \n Highlights:\n \n \n \n ·\n Binding documentation entered for a 50% farmout of non-core areas of licence XIB to Georgia Oil and Gas Limited (\"GOGL\")\n \n \n \n \n \n ·\n Farmout terms amount to a work programme with an estimated value of USD 3.0 million comprising USD 2.5 million for a 2D seismic acquisition and USD 0.5 million for seismic reprocessing\n \n \n \n \n \n ·\n Portions being farmed out are exploration areas that would have been subject to relinquishment in 2024, and now form part of Block's new Project IV\n \n \n \n \n \n ·\n None of the existing fields, current production and future development plans associated with Projects I, II and III within the XIB licence are subject to the farm-out and the transaction will have no impact on Block's operator status across its existing production areas\n \n \n \n \n \n · \n Farmout will advance Block's exploration opportunities through a sizable work programme commitment from GOGL at no cost to Block\n \n \n \n \n \n ·\n Future associated cash liability is capped at USD 50,000 per annum net to Block until further major capital works (3D seismic/drilling) are committed to by either GOGL or third-party farminee\n \n \n \n \n \n ·\n GOGL is the largest exploration company in Georgia and holds acreage of over 13,200 km2 within various PSCs\n \n \n \n \n \n \n Farm-Out\n \n \n \n Block's XIB licence covers a total area of 614 km2 and includes the Patardzeuli, Samgori, Teleti and Rustavi fields which have produced more than 180 MMbbl of oil.\n \n \n The portions of XIB that are subject to the farm-out are exploration-focused, form part of Block's newly established Project IV, and do not include any of the areas currently in production. They include a 103km2 section in the north of the licence (bordering licences XIM & XIQ) and a 148km2 area in the southeast of XIB (bordering licences XI...