Block Energy receives non-binding farm-in offer for major Georgia gas project

Block Energy plc has received a non-binding farm-in offer from a large energy company for its Project III appraisal and early-stage development program in Georgia. The proposal follows extensive technical and commercial engagement and includes a full carry of the planned Patardzueli-Samgori appraisal campaign—covering historical well re-tests, two inclined sidetracks targeting the Lower Eocene, and comprehensive reservoir evaluation and testing.

The offer also provides for an initial development carry to build and connect a 20 MMcf/d early-production facility. Block estimates the combined gross value of the carry at $25–30 million. Finalization of the deal is subject to negotiation of binding agreements and approval from the Georgian government.

Patardzueli-Samgori contains an estimated 1,074 Bcf of 2C contingent gas resources, with additional upside across the Rustavi and Teleti fields and the South Dome prospect. CEO Paul Haywood said the offer aligns with Block’s objectives of securing funding for appraisal and early development while advancing a portfolio located near key regional export infrastructure, including the South Caucasus Pipeline.

Block will continue negotiations and update shareholders as discussions progress.