Block Energy, the international oil and gas company with assets in Georgia and offshore Gabon, has announced its audited results for the year ended 31 December 2025. The period was defined by resilient operational delivery in a lower oil price environment, third-party validation across the Company's Georgian portfolio and, following the year end, the establishment of a new growth platform in the fairway of the Gulf of Guinea.
Highlights:
Strategic validation through partner-funded growth
- Project IV / XIQ: announced the farm-out of XIQ to Aspect Georgia, LLC in September 2025, with completion in January 2026 following Government of Georgia approval; Block is fully carried through a staged work programme estimated at approximately US$95 million.
- Project III: acquired the operational rights to South Dome in March 2025 for nil cost, adding 574 BCF of 2U gross prospective resources, and signed non-binding heads of terms with Sanning in December 2025, which progressed after the year end into the binding Framework Agreement announced in April 2026.
- The April 2026 Sanning Framework Agreement provides for a 51% farm-out and up to US$75 million in carry across appraisal and early facilities workstreams, subject to definitive documentation, approvals and project elections.
- Acquired a 10% interest in the enlarged XIQ PSC in March 2025 through GOG SLADS Limited for a US$77,000 contribution to Block's share of the 2025 work programme; following the Aspect farm-out, Block's XIQ participating interest is 9.5%.
- Successfully executed the CCS pilot injection of CO2 in August 2025; immediate post-injection analysis indicated 70% to 100% mineralisation and the February 2026 OPC report confirmed complete mineralisation within one to three months.
- Drilled the KRT-39_ST sidetrack on Project I in September 2025 at approximately 40% of conventional sidetrack cost, validating the slim-hole drilling concept and establishing a lower-cost base across Project I and potentially Project II.
- Continued subsurface and engineering work on Project II in preparation for a structured farm-out or asset-level financing process.
- Continued subsurface evaluation of exploration prospectivity in Block IX.
- Together, Aspect, Sanning and CCS provide meaningful external and technical validation of Block's partner-funded growth model.
- New offshore Gabon platform
- Post year-end, Block announced a strategic entry into offshore Gabon through a secured convertible loan to Pilgrim Exploration Limited, providing a 76.5% indirect economic interest in the Ndjila (CD2) and Mpari (CD3) PSCs.
- The PSCs cover 5,331 km² and contain four historical oil discoveries - Iguega, Topaz, Ekouata and Pilote - alongside material pre- and post-salt exploration potential in an established Gulf of Guinea hydrocarbon fairway.
- Operational and financial resilience
- Delivered 275,995 operational man-hours with no Lost Time Incidents (2024: 283,205 operational man-hours with one LTI).
- Existing production was above budget and in line with the 2022 ERCE reserve report: 122,474 barrels of crude oil (2024: 131,579 barrels), 245 MMCF of gas (2024: 274 MMCF) and average annual production of 447 boepd (2024: 485 boepd).
- Revenue of US$6.057 million (2024: US$7.533 million), reflecting a materially lower oil price backdrop, with Brent averaging approximately US$69/bbl in 2025 compared with approximately US$81/bbl in 2024.
- EBITDA was negative US$0.94 million (2024: positive US$1.06 million), in line with expectations in the lower price environment and achieved while continuing to progress Project III, Project IV, CCS and new venture activity.
- Year-end cash improved to US$1.493 million (31 December 2024: US$1.136 million), supported by the successful completion in November 2025 of the Group's first equity fundraise since 2020, which raised gross proceeds of £1.5 million.
- Year-end crude oil inventory of 9,731 barrels as at 31 December 2025 (31 December 2024: 11,060 barrels).
- Cost discipline was maintained despite higher strategic project activity, reflecting the Company's continued drive to lower-cost operations, partner-funded work programmes and asset-level financing.
- Following the year end, the associated share placing and retail share offer to support the Gabon entry raised approximately US$6.3 million before expenses, with all General Meeting resolutions passed on 18 May 2026 and the conditional fundraise shares admitted to AIM.
- Subsequent to year end, commodity prices have strengthened materially from the 2025 average. Combined with strong operational performance and enhanced efficiencies, Block is positioned to benefit from a better commodity price environment while retaining the discipline developed during the lower-price period.
- 2026 priorities include progressing definitive documentation and approvals for the Sanning transaction, commencing the Aspect-funded XIQ seismic programme, advancing CCS commercial feasibility studies and launching the Gabon technical programme.
Block Energy plc's Chief Executive Officer, Paul Haywood, said:
'2025 was a year of strategic validation for Block. In Georgia, the Aspect farm-out on XIQ and the non-binding heads of terms with Sanning on Project III demonstrated that credible counterparties recognise the scale and quality of the portfolio we continue to build. Post year-end, Project III progressed to the binding Framework Agreement with Sanning, bringing the prospect of a substantial carried appraisal and early facilities programme, with Aspect planning to execute its 3D seismic acquisition, in XIQ.
Our strategy is built on capital discipline, selectively deploying cash generated from existing production, advancing high-impact opportunities through asset-level funding, and protecting shareholders from disproportionate equity dilution.
Following the year end, our entry into offshore Gabon opened a new front for the Company in an established Gulf of Guinea hydrocarbon fairway. The Ndjila and Mpari PSCs bring meaningful historical discoveries, material exploration upside and a clear route to asset-level financing, complementing our Georgian production base and partner-funded growth strategy.
The 2025 financial result reflects a materially lower oil price environment, but cash improved, costs remained controlled and the business has been re-wired for sustainability through commodity cycles. With commodity prices materially stronger than the 2025 average, our focus in 2026 is execution: converting partnerships, assets and technical milestones into visible operational progress and shareholder value.'
Source: Block Energy
