Block Energy PLC (AIM:BLOE) shares soared on Thursday, after announcing it had agreed terms for a farmout deal in Georgia.
Licence XIQ, part of Block's Project IV portfolio, is the subject of the deal with a currently undisclosed 'international exploration and production company', and the transaction could secure government approval by the first quarter of 2026.
It will see the incoming partner fully fund a staged work programme that includes 3D seismic and up to three deep wells.
“The successful conclusion of negotiations represents a major step for the development of the XIQ license,” said Block chief executive Paul Haywood.
Block currently holds 10% of the licence, with an option to increase its stake to 22%. Meanwhile, the new farm-out partner could potentially acquire as much as 92.5% of the asset in exchange for cash and royalties.
Estimates see the XIQ licence with some 588.7 million barrels of oil equivalent of 588.7 million barrels of oil equivalent (untested, prospective resources), with some 301.7 million attributed to the Martkopi Terrace structure.
In London, Block stock was up 19.6% changing hands at 1.02p, having seen 1.25p (a new twelve-month high) earlier in today's session.