KEYFACT Energy
Block Energy plc, the development and production company focused on Georgia, is pleased to provide a Project IV update.
Highlights
- DeGoyler MacNaughton independent resource report covering Didi Lilo ("Project IV").
- 302.8 MMboe mean unrisked prospective resources identified in the Martkopi Terrace prospect with over 30% chance of geological success.
- Farm-out discussions with regional oil companies continue to progress well.
Project IV Background
As announced in March 2023, the Company completed a farm-out agreement for part of licence XIB to privately-owned Georgia Oil and Gas Limited ("GOGL").
As part of the consideration for the transaction, GOGL acquired and processed 210 km new 2D seismic and reprocessed 1,000 km of existing regional seismic data.
The portions of the licence that were farmed-out to GOGL (Didi Lilo and South Samgori) would have been subject to relinquishment obligations due in 2024 under the terms of the XIB Production Sharing Contract.
Project IV Independent Prospective Resource Report
As part of the work programme on Project IV, an independent prospective resource report was commissioned by the Operator, GOGL, on the Didi Lilo area as well as nearby GOGL acreage in order to facilitate current farm-in discussions with regional oil companies, which continue to progress. The report was authored by DeGolyer MacNaughton, a leading US based petroleum engineering firm, to Petroleum Resource Management System (PRMS) standards.
The gross prospective resources applicable to the Didi Lilo area (including portions of the prospect in nearby licences XIM & XIQ) are as follows:
|
Prospect |
Licence |
1U (Low) Estimate |
2U (Best) Estimate |
3U (High) Estimate |
Mean Estimate |
Probability of Geological Success (%) |
|
Martkopi Terrace Middle Eocene |
Didi Lilo, XIM & XIQ |
Gross Oil Resources (MMbbl) |
31.4% |
|||
|
135.8 |
239.4 |
420.4 |
267.2 |
|||
|
Gross Associated Gas Resources (BCF) |
||||||
|
105.6 |
193.3 |
337.9 |
213.4 |
|||
|
Gross Oil & Gas Resources (MMboe) |
||||||
|
153.4 |
271.6 |
476.7 |
302.8 |
|||
|
Net Present Value, 10% (USD MM) |
Probability of Economic Success (%) |
|||||
|
99.5 |
223.4 |
501.8 |
272.7 |
28.4% |
||
Additional prospectivity was identified in GOGL's neighbouring acreage, licences XIK, XIM, XIN and XIQ, of which the state company, Georgia Oil and Gas Corporation ("GOGC"), acquired a 22% paying interest in 2021.
Commenting, Paul Haywood, Block Energy Chief Executive Officer said:
"We're pleased to report that DeGoyler MacNaughton have identified substantial prospectivity of over 300MMboe Gross Mean Unrisked Prospective Resources and project value in excess of US$270MM within the Martkopi Terrace prospect.
This independent subsurface validation, plus the significant commercial work, bolsters our confidence in the potential of Project IV and we look forward to updating shareholders on progress made to crystalise this significant opportunity in due course."
KeyFacts Energy: Block Energy Georgia country profile