Block Energy plc and its partners have agreed a farm-out to an as yet unnamed “leading E&P company” for licence XIQ, containing the Martkopi Terrace prospect, held within its Georgia portfolio.
CONFIDENCE
The transaction remains subject to regulatory approval, expected between the final quarter of 2025 and the first quarter of 2026.
XIQ is currently held by operator Georgia Oil and Gas Ltd (GOGL) with 68%; Georgia Oil and Gas Corporation (GOGC) has 22% and Block owns 10% with an option to increase to 22%.
Under the agreement, the partner will complete 3D seismic and three deep, high-impact wells on Martkopi Terrace in exchange for up to a 75% working interest in the licence.
The project partner will have an option to increase its interest to 92.5% for cash and royalty payments.
Martkopi Terrace is about 10km from the prolific Patardzueli-Samgori field which produced some 180 million barrels from the same target reservoir.
Block said that XIQ holds total mean unrisked recoverable prospective resources of 588.7 million barrels of oil equivalent, and Martkopi Terrace has 301.7 MMboe.
Chief executive officer Paul Haywood added that the future partner’s significant investment underlined the quality of the prospectivity within the basin.
“Whilst there can be no certainty that the transaction will complete, the effort and progress from the XIQ partners and farminee provides confidence in a successful outcome.”