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(Sharecast News) - Block Energy announced the start of the farm-out process for Project III on Monday, targeting the development of a gas resource in Georgia.
The AIM-traded company said it had appointed LAB Energy Advisors, a prominent independent energy advisory firm, to spearhead the efforts.
Block recently announced an independent engineering report, which assigned over one trillion cubic feet of 2C contingent gas resource to the Patardzeuli-Samgori field within Project III.
Moreover, the report projected a project net present value of more than $500m.
The firm said Project III represented a substantial opportunity for the evaluation and exploitation of significant gas reserves strategically positioned near the Southern Caucasus Pipeline (SCP), facilitating access to both international markets and local infrastructure within the greater Tbilisi area.
Over the last two years, Block Energy said it had diligently conducted technical and commercial assessments to delineate the gas resource within Project III.
That effort had been reinforced by the recognition from the Ministry of Economy and Sustainability of the Republic of Georgia, which deemed the project's gas resource as critical for addressing the pressing energy needs driven by Georgia's burgeoning economy.
Furthermore, the company said Project III presented potential avenues for commercial carbon capture and storage (CCS) endeavours within the Patardzeuli-Samgori Middle Eocene reservoir.
An independent report identified a mid-case capacity of 151.5 million tonnes of carbon dioxide storage within the reservoir's rocks, suggesting the feasibility of implementing cost-effective CCS technologies, already operational in Iceland.
In tandem with the farm-out process, Block said it had strategically engaged LAB Energy to ensure effective marketing of Project III's potential to a broad spectrum of prospective partners.
"The appointment of LAB Energy marks the beginning of the anticipated farm-out process of project III, signalling our commitment to deliver a high-value strategy with near-term impact," said chief executive officer Paul Haywood.
"We're excited to get the process underway and look forward to updating our shareholders in due course."
At 1001 GMT, shares in Block Energy were down 0.24% at 1.05p.
Reporting by Josh White for Sharecast.com.
