REG - Block Energy PLC - Project III Farmout Update

Block EnergyAnnouncement

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RNS Number : 6168K  Block Energy PLC  08 December 2025

8 December 2025

Block Energy plc

("Block" or the "Company")

Project III Farm-Out Update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

Block Energy plc (AIM: BLOE), the development and production company focused
on Georgia, is pleased to provide an update on the Project III farm-out
process.

 

The Company has received a non-binding farm-in offer from a large energy
company following extensive technical and commercial engagement.

 

The indicative offer includes a full carry of the Patardzueli-Samgori
appraisal programme, comprising:

 

·    Three historical well re-tests (two Lower Eocene and one Upper
Cretaceous);

 

·    Two highly-inclined sidetracks targeting the Lower Eocene; and

 

·    A full suite of reservoir data acquisition and well-testing
operations.

 

In addition to the appraisal carry, the offer includes an initial development
carry covering the construction and hook-up of a 20 MMcf/d (c. 3,300 boe/d)
early-production facility. Block estimates the total gross cost of the
proposed carry to be in the range of US$25-30 million.

 

The offer is subject to the negotiation of and entry into customary detailed
binding agreements as well as Georgian government approval of the transaction.

 

The Patardzueli-Samgori field contains 1,074 Bcf of 2C contingent resources
with an estimated NPV(10) of US$501 million (Oilfield Production Consultants,
2024). Project III also includes the Rustavi and Teleti fields, containing a
further 1,710 Bcf of 2C contingent resources (Block Energy, 2024), and the
South Dome exploration prospect, which contains 574 Bcf of gross unrisked 2U
prospective resources (Block Energy, 2025).

 

Paul Haywood, Chief Executive Officer of Block Energy, commented:

 

"We are very pleased to have received a farm-in offer from a strong
prospective JV partner with whom we have progressed extensive negotiations.
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.

 

We look forward to updating shareholders as negotiations advance and as we
continue to progress activity across the wider portfolio."

 

"Mr. Christopher Brown BSc, MSc, DIC (Block's Technical Director) has reviewed
the reserve, resource and production information contained in this
announcement. Mr. Brown is a geoscientist with over 45 years of experience in
the Oil and Gas E&P sector."

 

**ENDS**

For further information please visit http://www.blockenergy.co.uk/ or contact:

 Paul Haywood                Block Energy plc                 Tel: +44 (0)20 3468 9891

 (Chief Executive Officer)
 Neil Baldwin                Spark Advisory Partners Limited  Tel: +44 (0)20 3368 3554

 (Nominated Adviser)
 Peter Krens                 Tennyson Securities              Tel: +44 (0)20 7186 9030

 (Corporate Broker)
 Mark Antelme                Celicourt Communications         Tel: +44 (0)20 7770 6424

 Philip Dennis

 Ali AlQahtani

 (Financial PR Adviser)

 

Notes to editors

Block Energy plc is an AIM quoted independent oil and gas production and
development company with a strategic focus on unlocking the energy potential
of Georgia. With interests in seven Production Sharing Contracts in central
Georgia, covering an area of 4,256 km(2), including the XIB licence which has
over 2.77TCF of 2C contingent gas resources, with an estimated Net Present
Value 10 ("NPV") of USD 1.65 billion, in the Patardzueli-Samgori, Rustavi and
Teleti fields. (Source: IER, OPC 2024 & Internal estimates).

The Company has structured its operations around a four-project strategy.
These projects, characterized by development stage, hydrocarbon type, and
reservoir, are pursued concurrently to achieve multiple objectives. This
includes increasing existing production, redeveloping fields, discovering new
oil and gas deposits, and capitalizing on the substantial, yet untapped, gas
resource across its licences. The goal is to deliver on multi TCF gas assets,
strategically well located for the key EU market, supported by partner funding
and cash from existing producing assets.

Located near the Georgian capital of Tbilisi, Block Energy is well-positioned
to contribute significantly to the region's energy landscape. This proximity
facilitates seamless operations and underscores our commitment to the economic
and energy development of Georgia.

Glossary

MMCF/d means millions of standard cubic feet of gas per day

Boe/d means barrels of oil equivalent per day, with each barrel of oil
equivalent being 6,000 cubic feet of gas

Bcf means billions of cubic feet of gas

Tcf means trillions of cubic feet of gas

 

 

 

 

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