Realising Georgia's energy potential
Block Energy (AIM:BLOE) applies innovative technology to unlock the full energy potential of Georgia
Block Energy is an AIM-listed independent energy company, developing significant gas and CCS opportunities, at the cross-roads of Asia and Eurioe, supported by cashflows from oil & gas production.
We hold interests in seven Production Sharing Contracts in central Georgia covering a total area of 4,256 km2, including XIB, the country’s most prolific licence, which has produced more than 180 MMbbl of oil. Our assets have proven hydrocarbons within four reservoir sequences, and we apply modern technologies to develop and commercialise the significant oil and gas and CCS potential within our acreage.
A four project strategy to commercialise Georgia's strategic gas resource
We have grouped our gas operations into four projects, individual developments defined by development stage, hydrocarbon type and reservoir. We are pursuing our projects concurrently to increase existing production, redevelop existing fields, find new oil and gas deposits, and commercialise the significant undeveloped gas resource across our licences.
Project I is focused on developing oil production from the Middle Eocene reservoir of the West Rustavi/Krtsanisi field. An initial five well programme targeting the first of eight development areas was audited by ERCE, which ascribed gross 3P reserves of 3.01 MMbbl with a net present value of $57m. Our internal contingent resources estimate for the entire field is 19.5 MMbbl 2C.
In September 2025, the Company successfully deployed directional “slim hole” drilling technology, aimed at reducing costs by as much as 40% and much improving returns. The technology has potential application across Projects I and II.
Project II aims to re-develop the Middle Eocene reservoir of the Patardzeuli and Samgori fields, to which our internal Contingent Resource report ascribes Gross 2C Contingent Resources of 235 MMbbl. Additional potential exists in Upper Eocene reservoirs within the area.
Project III is focused on the undeveloped gas-bearing natural fracture system within the Lower Eocene and Upper Cretaceous reservoirs – each more than a kilometre thick – spanning the XIB and XIF blocks. A 2024 Independent Engineering Report estimates the Lower Eocene and Upper Cretaceous reservoirs in the Patardzueli-Samgori field have over 1 TCF of 2C Contingent Resources with a NPV exceeding $500m.
In March 2025, Block’s operational rights to the Upper Eocene, Lower Eocene and Upper Cretaceous in the Samgori South Dome (“SSD”) field were confirmed, adding 574 BCF 2U unrisked prospective resources to Project III.
Project IV is focused on exploring the full potential of our licences, including licence IX and Didi Lilo where we have identified significant prospectivity.
Project IV is focused on the XIQ licence, in which Block has a 10% interest, with an option to increase to 22%.The licence has been attributed 588.7MMboe of mean unrisked recoverable prospective resources, which includes the highly prospective Martkopi Terrace prospect, with 301.7 MMboe of mean unrisked recoverable resources.
Project IV also contains the IX licence (Block 100%) and XIH licence (Block option to acquire 22%) offering upside potential.
In 2025, licence XIQ was successfully farmed out to an international E&P with a proven track record in the region, in exchange for a work programme that included 3D seismic and up to 3 high impact wells on the Martkopi Terrace.
