Business
Project III Farmout Update
Block Energy plc has received a non-binding farm-in offer from a large energy company for its Project III, which includes a full carry of the Patardzueli-Samgori appraisal programme and an initial development carry for a 20 MMcf/d early-production facility, with an estimated total gross cost carry of US$25-30 million. The Patardzueli-Samgori field holds 1,074 Bcf of 2C contingent resources with an NPV10 of US$501 million, and the overall Project III also encompasses additional resources in the Rustavi and Teleti fields and the South Dome exploration prospect. This offer is contingent on final binding agreements and Georgian government approval. Disclaimer*
About this update from Block Energy Plc
[{"type":"text","content":"\n\n8 December 2025\nBlock Energy plc\n(\"Block\" or the \"Company\")\nProject III Farm-Out Update\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \nBlock Energy plc (AIM: BLOE), the development and production company focused on Georgia, is pleased to provide an update on the Project III farm-out process.\n \nThe Company has received a non-binding farm-in offer from a large energy company following extensive technical and commercial engagement.\n \nThe indicative offer includes a full carry of the Patardzueli-Samgori appraisal programme, comprising:\n \n· Three historical well re-tests (two Lower Eocene and one Upper Cretaceous);\n \n· Two highly-inclined sidetracks targeting the Lower Eocene; and\n \n· A full suite of reservoir data acquisition and well-testing operations.\n \nIn addition to the appraisal carry, the offer includes an initial development carry covering the construction and hook-up of a 20 MMcf/d (c. 3,300 boe/d) early-production facility. Block estimates the total gross cost of the proposed carry to be in the range of US$25-30 million.\n \nThe offer is subject to the negotiation of and entry into customary detailed binding agreements as well as Georgian government approval of the transaction.\n \nThe Patardzueli-Samgori field contains 1,074 Bcf of 2C contingent resources with an estimated NPV10 of US$501 million (Oilfield Production Consultants, 2024). Project III also includes the Rustavi and Teleti fields, containing a further 1,710 Bcf of 2C contingent resources (Block Energy, 2024), and the South Dome exploration prospect, which contains 574 Bcf of gross unrisked 2U prospective resources (Block Energy, 2025).\n \nPaul Haywood, Chief Executive Officer of Block Energy, commented:\n \n\"We are very pleased to have received a farm-in offer from a strong prospective JV partner with whom we have progressed extensive negotiations. While there is no certainty that a transaction will complete, the non-bindin...