Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Block Energy launches farm-out process at Project III

(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

Share this article

Related Sharecast Articles

Billionaire Issa nearing deal to sell Asda stake to TDR Capital - report
(Sharecast News) - US private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
Billionaire Issa nearing deal to sell Asda stake to TDR Capital
(Sharecast News) - Private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
DS Smith tumbles as Mondi abandons pursuit
(Sharecast News) - DS Smith tanked on Friday after Mondi said it would not be making an offer for the rival packaging group, clearing the path for a takeover by International Paper.
Eqtec agrees amendment to Verde subscription
(Sharecast News) - Waste-to-energy technology developer Eqtec updated the market on the Verde Corporation subscription on Friday, confirming that an amendment to the subscription letter had been agreed upon with Verde.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.