Highlights

  • The company disclosed a non-binding farm-in offer linked to Project III assets.
  • The proposal outlines a full carry estimated at USD 25–30 million.
  • Project III includes appraisal, early development, and multiple gas resource areas.

Block Energy plc (LSE:BLOE) has released an update on the farm-out process for its Project III operations in Georgia. The announcement confirmed the receipt of a non-binding farm-in offer from a large energy company following detailed technical and commercial discussions.

The company clarified that the proposal is indicative and not legally binding at this stage. Completion of the transaction remains dependent on the negotiation and execution of definitive agreements, as well as required approvals from the Georgian government. As such, there is no assurance that the farm-out will be finalised.

Appraisal Programme Scope Explained
According to the update, the indicative offer includes a full carry of the Patardzueli-Samgori appraisal programme. This programme consists of three historical well re-tests, covering two Lower Eocene wells and one Upper Cretaceous well.

In addition, the proposal covers the drilling of two highly inclined sidetracks targeting the Lower Eocene formations. A comprehensive set of reservoir data acquisition and well-testing operations is also included as part of the appraisal scope. These activities are intended to further evaluate the scale and characteristics of the gas resources within the field.

Early Production Development Plan
The non-binding offer extends beyond appraisal operations to include an initial development carry. This phase involves the construction and connection of an early-production facility designed for a capacity of 20 MMcf per day, equivalent to approximately 3,300 barrels of oil equivalent per day.

Block Energy has estimated the total gross cost of the combined appraisal and early development carry to fall between USD 25 million and USD 30 million. The cost estimate reflects infrastructure development and associated operational work outlined in the proposal.

Resource Position Within Project III
The Patardzueli-Samgori field, which forms a major part of Project III, contains 1,074 Bcf of 2C contingent gas resources. An independent assessment completed in 2024 estimated an NPV10 of USD 501 million for these resources.

Project III also includes the Rustavi and Teleti fields, which together hold an additional 1,710 Bcf of 2C contingent resources, based on company disclosures. Furthermore, the project area incorporates the South Dome exploration prospect, which contains an estimated 574 Bcf of gross unrisked 2U prospective resources.

Regulatory Process and Oversight
The company noted that the reserve, resource, and production information referenced in the update has been reviewed by its technical director, who has extensive experience in the oil and gas sector. Block Energy indicated it will provide further disclosures as discussions related to the Project III farm-out continue.

Share Price Snapshot
BLOE was trading 15.39% higher at GBX 0.75 per share as of 08 December 2025.