Block Energy plc is progressing “extensive” talks for a potential farm-in, with an estimated US$25 to 30 million carry, over the undeveloped gas-bearing natural fracture system in the Patardzueli-Samgori field, Georgia.
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The company’s blocks, XIB and XIF, lie within the Lower Eocene and Upper Cretaceous reservoirs, which are more than a kilometre thick.
A 2024 independent engineering report estimates the two reservoirs hold more than one trillion cubic feet of 2C contingent resources.
Block also holds operational rights to the Upper Eocene, Lower Eocene and Upper Cretaceous in the Samgori South Dome, which it maintains will add 574 billion cubic feet 2U unrisked prospective resources.
The explorer and producer said that the farm-out, representing project III, was under a non-binding offer from a “large energy company”.
The offer includes full carry of the Patardzueli-Samgori appraisal programme, comprising re-testing two historical wells in the Lower Eocene and one in the Upper Cretaceous reservoirs.
The farm-in partner would additionally drill two “highly-inclined” sidetracks targeting the Lower Eocene, as well as reservoir data acquisition and well-testing.
An initial development carry covers construction and hook-up of an early-production facility, for 20 million cubic feet per day, equal to circa 3,300 barrels of oil equivalent per day.
Project III also includes the Rustavi and Teleti fields, which have a 2024 company estimate of a further 1,710 bcf of 2C contingent resources.
Chief executive officer Paul Haywood added: “While there is no certainty that a transaction will complete, the non-binding offer meets our core objectives: a full carry of the appraisal programme and early-stage development of Patardzueli-Samgori, a field with over 1 tcf of 2C contingent gas resources, with material upside across the Rustavi and Teleti fields as well as the South Dome exploration prospect which are all located within 15 miles of the South Caucasus Pipeline, one of Europe’s major gas import corridors.”