Block Energy has recently completed its 3D exploration on the Martkopi Terrace in Georgia. This field is part of the company's Project IV portfolio, and according to evaluations by DeGolyer and MacNaughton in 2023, the recoverable resource capacity of this field is estimated at 301.7 million barrels of oil equivalent (MMboe).
Impact of 3D Exploration on Project IV
The completion of the 3D exploration at the Martkopi field is considered a significant milestone for Project IV and a sign of the financing strategy from the company's partners. Paul Haywood, CEO of Block Energy, stated that this exploration will enhance our understanding of the field and will be effective in future drilling decisions.
Details of the Contract and Collaboration with Aspect Georgia
This exploration was conducted following the transfer of the XIQ license to Aspect Georgia, a subsidiary of U.S.-based Aspect Energy. Under the agreement, Aspect Georgia can acquire up to 75% working interest in the license by completing a fully funded work program. This program includes exploration, appraisal drilling, and initial production facilities. Block Energy estimates the total cost of this program to be around $95 million, and the company is fully involved in the relevant stages.
Aspect Georgia also has an option to increase its share to 92.5% in exchange for cash payment and additional royalties. With the completion of the exploration, the data now needs to be processed and interpreted. Block Energy expects that the new 3D data will help improve subsurface imaging and structural definition of the Martkopi field.
Paul Haywood emphasized that the structure funded by Aspect preserves Block's capital while allowing the company to participate in potentially significant outcomes in this field. He also noted that this model is gradually expanding into other sectors of the company's portfolio.
Block Energy is listed on the AIM market in London and has oil and gas assets in Georgia as well as offshore interests in Gabon.
