Block Energy PLC (AIM:BLOE) shares rose 10% to 0.72p on Monday after the company revealed it has received a non-binding farm-in offer from a “large energy company” for Project III, its flagship appraisal and development initiative in Georgia.
The proposal follows months of technical and commercial discussions and would see the incoming partner fully fund the appraisal of the Patardzueli-Samgori field.
The carry would cover three historical well re-tests, two highly inclined sidetracks into the Lower Eocene reservoir, and a full programme of reservoir data gathering and well testing.
It also includes an initial development carry to build and connect an early-production facility capable of handling 20 million cubic feet per day, roughly 3,300 barrels of oil equivalent. Block estimates the total value of the carry at US$25–30 million.
The deal remains subject to negotiation of binding agreements and approval from the Georgian government.
Patardzueli-Samgori holds 1,074 billion cubic feet of 2C contingent gas resources with an estimated NPV10 of US$501 million, according to a 2024 assessment.
Project III also encompasses the Rustavi and Teleti fields, which contain a further 1,710 billion cubic feet of contingent resources, and the South Dome prospect, with 574 billion cubic feet of unrisked prospective resources.
Chief executive Paul Haywood said the offer “meets our core objectives” but stressed there is no certainty of completion.