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Georgia: Block Energy commences Project III farm-out process


12 Feb 2024

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Block Energy, the development and production company focused on Georgia, has launched the farm-out process for Project III, targeting the development of a gas resource of strategic significance to the Georgian state through the appointment of LAB Energy Advisors, a leading independent energy advisory company.

The appointment follows last week's announcement of an Independent Engineering Report ('IER'), which ascribed over 1 TCF of 2C Contingent Gas Resource to the Project's Patardzueli-Samgori field, and a project Net Present Value of more than USD 500 million.

Project III Farm Out

Project III is a material opportunity for the appraisal and development of significant gas resources located close to the Southern Caucasus Pipeline ('SCP') connected to international markets and local infrastructure and markets within the greater Tbilisi area.

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The initiation of the farm-out process follows two years of technical and commercial work by Block to define the Project's gas resource, which the Ministry of Economy and Sustainability of the Republic of Georgia has declared of strategic significance for meeting the urgent demand for energy required by Georgia's fast-growing economy.

Project III also offers potential for a commercial Carbon Capture and Storage ('CCS') opportunity within the Patardzueli-Samgori Middle Eocene reservoir, which an independent report indicates as having a mid-case capacity of 151.5 million tonnes of carbon dioxide. The reservoir's rocks would allow for the application of low-cost, high-impact CCS technologies already in commercial use in Iceland. The project, which has potential to establish a major net-zero hub in central Georgia, underlines Block's commitment to sustainability.

Appointment of LAB Energy

The Company believes the appointment of an independent advisor will ensure the Project's potential is marketed effectively to a wide range of prospective partners, offering the best prospect of securing an optimal deal for shareholders.

LAB Energy is a UK-based energy sector advisory company with a proven record in facilitating upstream transactions across the European onshore market, encompassing traditional oil and gas companies, transitional energy and clean-tech players.

Commenting, Paul Haywood, Block Energy Chief Executive Officer, said:

'The appointment of LAB Energy marks the beginning of the anticipated farm-out process of Project III, signalling our commitment to deliver a high-value strategy with near-term impact. We're excited to get the process underway and look forward to updating our shareholders in due course.'

Original announcement link

Source: Block Energy





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