Business
Farmout of licence XIQ (part of Project IV)
Block Energy PLC announced the finalized negotiation for the farmout of licence XIQ, part of Project IV, to an international E&P company. The agreement, awaiting Georgian government approval expected in Q4 2025-Q1 2026, involves the Farm-in Partner acquiring up to a 75% working interest in XIQ after completing a work program including 3D seismic and three deep wells. The partner could then move to a 92.5% interest in XIQ in exchange for cash and royalty payments. The XIQ license has total mean unrisked recoverable prospective resources of 588.7 MMboe, with the Martkopi Terrace prospect holding 301.7 MMboe. Block Energy currently holds a 10% interest in the XIQ license, with an option to increase to 22%. Disclaimer*
About this update from Block Energy Plc
[{"type":"text","content":"\n\n4 September 2025\nBlock Energy plc\n(\"Block\" or the \"Company\")\nFarmout of licence XIQ (part of Project IV)\nBlock Energy plc, the development and production company focused on Georgia, is pleased to announce the conclusion of negotiations for the farmout of licence XIQ (forming part of Project IV) to a leading international E&P company (\"Farm-in Partner\"). All necessary agreements (\"Transaction Documents\") have been finalised by the parties and submitted to the government of Georgia for approval. Execution of the Transaction Documents will be conditional, inter alia, upon their approval by the government of Georgia.\nUpon approval, which is expected during Q4 2025 - Q1 2026, the Transaction Documents will be executed by the parties and complete simultaneously, at which point the transaction will become legally binding.\nThe XIQ licence is currently held by Georgia Oil and Gas Limited (\"GOGL\"); (68%, Operator), Georgia Oil and Gas Corporation (\"GOGC\"); 22% and Block Energy (10% with an option to increase to 22%).\nUnder the agreement the Farm-in Partner will acquire up to a 75% working interest in the XIQ license, following the execution of the agreed work programme, comprising 3D seismic and three deep high-impact wells. Additionally, It will also receive an option to move to 92.5% interest in XIQ, in return for certain cash and royalty payments.\nHighlights:\n· Successful conclusion of negotiations for the farmout of licence XIQ which contains the exciting Martkopi Terrace prospect.\n· The Farm-in Partner is an international independent E & P company with a successful record of exploration and development in the Eastern European region.\n· Agreed terms of the farm-in include full funding by the Farm-in Partner of a staged work programme of 3D seismic and up to three deep high-impact wells on the Martkopi Terrace prospect.\n· Total mean unrisked recoverable prospective resources for XIQ licence of 588.7 MMboe, with Martkopi Terrace mean unrisked recoverable prospective resources at 301.7 MMboe.\n· Completion is subject, inter alia, to approval by the government of Georgia. The Company currently expects this to take place during Q4 2025 - Q1 2026.\nCommenting, Paul Haywood, Block Energy Chief Executive Officer said:\...