Project III
Lower Eocene and deeper gas monetisation
Project III aims to tap the significant undeveloped gas resource located in the Lower Eocene, Palaeocene and Upper Cretaceous reservoirs within the XIB and XIF licences.
In April 2026 Block entered into a binding Framework Agreement with Zhijiang Sanning Energy Co. Ltd for the farm-out of Project III.
- 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
- 1,700 BCF 2C recoverable contingent resources based upon internal estimates present in the Telti and Rustavi fields
- Reservoirs hosting the gas-bearing natural fracture system are often more than one kilometre thick
- Gas will be sold to Georgia’s thriving domestic market, and exported to the EU and beyond through the South Caucasus Pipeline crossing the XIB and XIF licences
- Strategically significant gas resource potential
- Ongoing technical study work across five fields and three reservoirs
- Initial plan designed to re-test legacy gas discoveries with simple workovers
- MoU with the Ministry of Economy and Sustainability supporting the concept of long-term gas offtake
- The acquisition of Samgori South Dome added 574 BCF of 2U prospective resources, strengthening the project’s resource base.
- Block Energy is actively pursuing farm-out opportunities to accelerate development and share operational risk, while retaining significant value for shareholders.
| Field | Recoverable Contingent Resources (BCF) | ||||
|---|---|---|---|---|---|
| 1C (Low) | 2C (Mid) | 3C (High) | Mean | Source | |
| Patardzueli-Samgori | 926 | 1,072 | 1,222 | 1,073 | OPC IER, 2024 |
| Rustavi | 884 | 1,062 | 1,245 | 1,064 | Block Energy Internal Report, 2024 |
| Teleti | 493 | 638 | 802 | 644 | Block Energy Internal Report, 2024 |
| Total | 2,303 | 2,772 | 3,269 | 2,781 | – |
Binding Framework Agreement
In April 2026 Block entered into a binding Framework Agreement with Zhijiang Sanning Energy Co. Ltd for the farm-out of Project III.
- Up to $75m carry comprising appraisal drilling and early facilities construction based on current estimates for the Project III fields
- Sanning to acquire 51% of Project III, with Block holding 49% and retaining operatorship throughout the appraisal programme
- The transaction sees the Project III 2.77 TCF 2C Contingent Resource (Block Energy, 2024) appraised through a multi-well programme initially focused on Patardzueli-Samgori
- Estimated Project III 2C gross success case NPV10 of $2.2bn
- Sanning is the upstream affiliate of Hubei Sanning Chemical Industry Co. Ltd, one of China's leading chemical companies producing over 11.5 million tonnes of chemical products and delivering revenues in excess of $2.8bn in 2025
