12th Dec 2022 11:31
(Alliance News) - Block Energy PLC on Monday said it entered into a 50% farmout agreement with exploration company Georgia Oil & Gas Ltd for part of Block Energy's XI licence block.
Block Energy is a London-based oil and gas company focused on Georgia. Its XI licence covers an area of 614 kilometres squared and includes the Patardzeuli, Samgori, Teleti and Rustavi fields in Georgia which have produced over 180 million barrels of oil.
The terms of the agreement include Georgia Oil & Gas completing a work programme across the northern and southeast sections of the licence. Block Energy said the work programme has an estimated value of USD3.0 million, comprising USD2.5 million for the acquisition and processing of 210 kilometres of 2D seismic data, and USD500,000 for the reprocessing of 1,000 km of existing seismic data.
Block Energy said the agreement will advance its exploration opportunities. The portions being farmed out are exploration areas that would have been subject to relinquishment in 2024, and now form part of Block Energy's new Project IV. Block and Georgia Oil & Gas will each have an interest of 50% in the respective areas.
"This farmout enables Block Energy to combine and progress advanced exploration opportunities, 800 million barrels of oil equivalent per day, with a capable and well-qualified operator, at de minimis cost, whilst allowing it to continue to focus on its core production and appraisal-led three project strategy," Block Energy Chief Executive Paul Haywood said.
Block Energy shares were up 8.3% to 1.41 pence on Monday morning in London.
By Jaskeet Briah, Alliance News reporter
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