Delivering near term cashflows for reinvestment

We are pursuing four concurrent projects designed to deliver near term cashflows to support reinvestment in the commercialisation of the significant gas potential within Project III and significant exploration potential within Project IV.

Georgia has strong domestic demand for gas, and is ideally placed for export to the EU and beyond through the South Caucasus Pipeline intersecting our licences.

Project I is focused on developing oil production from the Middle Eocene reservoir of the West Rustavi/Krtsanisi field. In 2019 we acquired a 3D seismic survey over West Rustavi, and in 2020 the Krtsanisi portion of the field from SPM. An initial five well programme targeting the first of eight development areas audited by ERCE ascribes 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.

Project II aims to redevelop 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.

Project IV is focused on exploring the full potential of our licences, including licence IX and Didi Lilo where we have identified significant prospectivity. In 2023, we entered into a farm-out agreement with Georgia Oil and Gas and acquired 2D seismic over the Markopi Terrace prospect.