Block Energy plc has completed the farm-out of licence XIQ, containing the Martkopi Terrace prospect, following approval from the Georgia Government.
STRATEGY
The transaction with US-based Aspect Energy Group, will see Block fully carried through the staged work, which includes seismic, exploration and appraisal drilling, and early production facilities.
Aspect’s subsidiary in Georgia will fund the overall programme for US$95 million (£71m), according to Block’s internal estimates.
In return, Aspect Georgia will earn up to a 75% working interest, with an option to increase its interest to 92.5%.
Acquisition of seismic data is expected to begin during 2026 with the main focus on Martkopi Terrace.
The prospect has 301.7 million barrels of oil equivalent of mean unrisked recoverable prospective resources, based on a 2023 independent assessment.
“The board views the completion of the XIQ farm-out as a material step forward for the company’s partner-led growth strategy, delivering near-term operational progress without dilutive capital requirements for Block, while preserving meaningful upside,” said the company.
Chief executive officer Paul Haywood added: “Securing Government approval and closing the transaction with Aspect Georgia brings a well-capitalised, technically credible partner into the licence, providing clear external validation of both the asset and our strategy.”
Block owns interests in seven production sharing contracts, covering 4,256 km2, in central Georgia.