Block Energy PLC (AIM:BLOE, FRA:BE9) shares spurted 14% higher to 0.8p after saying the farm-out of its Project IV (licence XIQ) has completed following approval from the government of Georgia.
The company confirmed that an agreement with a subsidiary of the Aspect Energy Group is now in effect.
Under the terms, Aspect Georgia will fund a US$95 million staged work programme in return for up to a 75% working interest in the licence. Block will retain a carried interest with no capital expenditure requirements.
Aspect Georgia also holds an option to increase its stake to 92.5% through additional cash and royalty payments.
The work programme targets the Martkopi Terrace prospect, which was independently assessed in 2023 and attributed 301.7 thousands of barrels of oil equivalent (MMboe) of mean unrisked recoverable prospective resources.
The programme includes seismic, exploration and appraisal drilling, and early production facilities, with seismic acquisition due to begin in 2026.
“Completion of the XIQ farm-out marks a major step forward for Block,” said chief executive Paul Haywood. “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.”
Block said the transaction also "provides positive read-through" for its nearby acreage, including Projects III and IX, which it continues to operate.