Block begins project III farm-out process

Block Energy plc has started the farm-out process for the Patardzueli-Samgori field within licences XIB and XIF, or project III, in Georgia.

INFRASTRUCTURE

The company appointed UK-based energy advisory group LAB Energy Advisors Ltd for the process following last week’s independent assessment of more than 1tcf of 2C contingent gas resource to the field.

A project net present value is of more than US$500 million.

Project III’s gas resources are close to the southern Caucasus pipeline (SCP) connected to international markets and local infrastructure and markets within the greater Tbilisi area.

Block said that project also offered potential for a commercial carbon capture and storage (CCS) opportunity within the Patardzueli-Samgori Middle Eocene reservoir.

Chief executive Paul Haywood added: “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.”