REG - Block Energy PLC - Project IV (XIQ) Farm-out Completion

Block EnergyAnnouncement

19/01/2026 07:00

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RNS Number : 3293P  Block Energy PLC  19 January 2026

19 January 2026

 

Block Energy plc

 

("Block" or the "Company")

 

Project IV (XIQ) Farm-out Completion

 

Block Energy plc (AIM: BLOE), the development and production company focused
on Georgia, is pleased to announce that the Government of Georgia has approved
the farm-out of licence XIQ (Project IV) and that the transaction is now
complete.

 

The counterparty to the transaction is Aspect Georgia, LLC ("Aspect Georgia"),
a US-based subsidiary of the Aspect Energy group, whose website is available
here. (https://www.aspectenergy.com/)

 

Highlights:

 

·    Government approval received and the XIQ farm-out transaction has
completed.

·    Block is fully carried through the staged work programme (including
seismic, exploration and appraisal drilling, and early production facilities),
with no capital exposure to Block.

·    Staged gross work programme expenditure estimated at approximately
US$95 million (Block Energy internal estimate), fully funded by Aspect
Georgia.

·    Aspect Georgia to earn up to a 75% working interest through the
staged, fully funded work programme, with an option to increase its interest
to 92.5% subject to additional consideration.

·    Completion provides positive read-through across Block's adjacent
acreage, including its wholly owned and operated Project III and the IX
licences.

·    Seismic acquisition expected to commence in 2026.

 

Transaction Context:

 

Under the terms of the farm-out, Aspect Georgia may earn up to a 75% working
interest in licence XIQ through the completion of a staged, fully funded work
programme. Aspect Georgia also holds an option to increase its working
interest to 92.5% in return for additional cash and royalty consideration.

 

The transaction terms remain unchanged from the Company's September 4(th) 2025
announcement.

 

The primary focus of the work programme is the Martkopi Terrace prospect,
which was independently assessed by DeGolyer and MacNaughton in 2023 and
attributed mean unrisked recoverable prospective resources of 301.7 MMboe. The
carried programme is structured to provide a clear pathway from exploration
success through appraisal and, subject to results, early production
facilities.

 

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.

 

CEO Comment

 

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

 

"Completion of the XIQ farm-out marks a major step forward for Block. 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.

The transaction delivers near-term progress without capital exposure to Block,
through a fully carried, staged programme estimated at approximately US$95
million, while preserving meaningful upside.

 

We now look forward to progressing the work programme and working with our
partners to unlock the significant value across Project IV.

 

Qualified Person Statement

 

Mr Christopher Brown BSc, MSc, DIC (Block's Technical Director) has reviewed
the technical information contained in this announcement, including the
referenced prospective resource estimate. 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 www.blockenergy.co.uk
(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

 Kathleen Beams

 (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,
progressed predominantly through partner funding alongside cash flow from
existing producing assets. 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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