Block Energy Wraps Up Partial XIB License Farm-Out to GOG

Georgia focused exploration and production company Block Energy said it has completed the farm-out of a part of the XIB license to Georgia Oil and Gas Limited (GOG).

The agreement regarding the farm-out of part of license XIB to Georgia Oil and Gas was reached near the end of last year, in December. The transaction has now been completed, with Block holding a 50 percent interest in the new Didi Lilo and South Samgori areas of XIB, the company’s statement reads.

The company reminded that, under the terms of the farm-out agreement, GOG has completed the seismic activities. Specifically, the company completed the acquisition and processing of 130 miles 2D seismic, reprocessing of 620 miles of existing seismic data and initial interpretation.

The Didi Lilo and South Samgori areas form part of GOG's broader portfolio, covering some 8,388 square miles, which GOG estimate to hold total un-risked prospective resource volumes of 3.1 TCF of gas and 1,400 MMbbl of oil, which underpins its high-impact farm-out strategy, Block Energy’s statement reads.

“We are pleased to have completed the previously announced farm-out of part of XIB to GOG and to see the seismic obligation fulfilled. We look forward to working on the seismic interpretation and progressing the project toward an industry farm-out,” commented Paul Haywood, Block Energy CEO.

Block's XIB license covers a total area of 237 square miles and includes the Patardzeuli, Samgori, Teleti and Rustavi fields which have produced more than 180 MMbbl of oil, according to the company.

The portions of XIB that were subject to the farm-out are exploration-focused, form part of Block's newly established Project IV, and do not include any of the areas currently in production. They include a 39 square mile section in the north of the license and a 57 square mile area in the southeast of XIB, according to Block.

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