Block Energy, the development and production company focused on Georgia, announces that the Government of Georgia has approved the farm-out of licence XIQ (Project IV) and that the transaction is now complete.

The counterparty to the transaction is Aspect Georgia, a US-based subsidiary of the Aspect Energy group.

Highlights:

• Government approval received and the XIQ farm-out transaction has completed.
• Block is fully carried through the staged work programme (including seismic, exploration and appraisal drilling, and early production facilities), with no capital exposure to Block.
• Staged gross work programme expenditure estimated at approximately US$95 million (Block Energy internal estimate), fully funded by Aspect Georgia.
• Aspect Georgia to earn up to a 75% working interest through the staged, fully funded work programme, with an option to increase its interest to 92.5% subject to additional consideration.
• Completion provides positive read-through across Block's adjacent acreage, including its wholly owned and operated Project III and the IX licences.
• Seismic acquisition expected to commence in 2026.

Transaction Context:

Under the terms of the farm-out, Aspect Georgia may earn up to a 75% working interest in licence XIQ through the completion of a staged, fully funded work programme. Aspect Georgia also holds an option to increase its working interest to 92.5% in return for additional cash and royalty consideration.

The primary focus of the work programme is the Martkopi Terrace prospect, which was independently assessed by DeGolyer and MacNaughton in 2023 and attributed mean unrisked recoverable prospective resources of 301.7 MMboe. The carried programme is structured to provide a clear pathway from exploration success through appraisal and, subject to results, early production facilities.

The Board views the completion of the XIQ farm-out as a material step forward for the Company's partner-led growth strategy, delivering near-term operational progress without dilutive capital requirements for Block, while preserving meaningful upside.

Paul Haywood, Chief Executive Officer of Block Energy, said:
"Completion of the XIQ farm-out marks a major step forward for Block. Securing Government approval and closing the transaction with Aspect Georgia brings a well-capitalised, technically credible partner into the licence, providing clear external validation of both the asset and our strategy.

The transaction delivers near-term progress without capital exposure to Block, through a fully carried, staged programme estimated at approximately US$95 million, while preserving meaningful upside.

We now look forward to progressing the work programme and working with our partners to unlock the significant value across Project IV."

KeyFacts Energy: Block Energy Georgia country profile   l   KeyFacts Energy: Farm-in agreements