RE: BLOE14 Apr 2026 12:45
RNS Number : 2849A
Block Energy PLC
14 April 2026
This announcement contains inside information for the purposes of the UK Market Abuse Regulations ('UK MAR'). Upon publication of this announcement, this inside information (as defined in UK MAR) is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of the Company is Phil Dimmock, Non-Executive Chairman.
14 April 2026
Block Energy plc
("Block" or the "Company")
Binding Framework Agreement for Project III Farm Out
Block Energy plc, the development and production company focused on Georgia, is pleased to announce that it has executed a binding Framework Agreement with Zhijiang Sanning Energy Co. Ltd ("Sanning") for the farm-out of Project III.
Highlights:
·
Milestone Framework Agreement executed for the farm-out of Project III to Sanning.
·
Up to USD 75 million 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.
·
Block retains 100% of Projects I, II, IV and CCS as well as 100% of existing oil and gas production.
·
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 USD 2.2 billion.
·
Sanning is the upstream affiliate of Hubei Sanning Chemical Industry Co. Ltd ("Sanning Chemical"), one of China's leading chemical companies producing over 11.5 million tons of chemical products and delivering revenues in excess of USD 2.8 billion in 2025.
Framework Agreement
Under the Framework Agreement, between Block and Sanning ("the Parties"), Sanning will acquire a 51% Participating Interest in Project III (being the Lower Eocene and deeper horizons) of the XIB and XIF Production Sharing Contracts*¹ ("PSCs"). In exchange, Sanning commits to carry Block on all capital and operating costs, currently estimated at USD 13 million, for the appraisal of the Patardzueli-Samgori field.
Subject to successful appraisal results and the triggering conditions to be set out in the Transaction Documents, Sanning shall carry Block on all costs of procuring and installing an early gas processing facility and associated pipeline infrastructure, up to an additional estimated commitment of USD 12 million.
At Sanning's election, Sanning may carry an optional work programme for the appraisal of the Rustavi and Teleti fields. If Sanning proceeds, Sanning shall carry Block through appraisal (a) drilling two new deviated appraisal wells targeting the Lower Eocene and/or Upper Cretaceous horizons; and (b) installing associated facilities where required. The scope, sequencing and cost allocation may be adjusted by
Sign In
Follow the stocks
