Project IV Update
Summary by AI BETAClose X
21 September 2026
Block Energy plc
("Block" or the "Company")
Project IV (XIQ) - Martkopi 3D Seismic Acquisition Progress Update
Partner-funded programme advancing across the 301.7 MMboe Martkopi Terrace prospect
Block Energy plc (AIM: BLOE), the international oil and gas company with assets in Georgia and interests in offshore Gabon, is pleased to provide an operational update on the ongoing 3D seismic acquisition over the Martkopi Terrace prospect within licence XIQ, part of the Company's Project IV portfolio, within Georgia.
Highlights
- Recording commenced in August 2026 and is progressing well.
- Approximately 70% of the survey has now been acquired and it is expected to complete by mid October.
- Strong HSE performance, with 68,676 cumulative man-hours worked and no lost-time incidents reported.
- Martkopi Terrace has been independently assessed to contain 301.7 MMboe of mean unrisked recoverable prospective resources (DeGolyer and MacNaughton, 2023).
- The survey forms the obligatory part of the c.US$95 million staged seismic and drilling work programme, which may be further funded by Aspect Georgia, with Block fully carried through the relevant phases.
Programme Progress
Mobilisation is complete and recording is well established across the Martkopi survey area. Of the 4,729 source points acquired as at mid-September 2026, 4,534 were acquired using Vibroseis and 195 using explosive sources. Explosive-source acquisition is ongoing following the initial Vibroseis-led phase.
Following completion of the acquisition, the recorded data will be processed and interpreted. The resulting 3D dataset will improve subsurface imaging, refine the structural definition of Martkopi Terrace and support the selection of future exploration drilling locations.
Figure 1: Martkopi 3D seismic acquisition progress map as at 10 September 2026.
Project Context
The Martkopi Terrace is the principal focus of the XIQ work programme and was independently assessed by DeGolyer and MacNaughton in 2023 as containing mean unrisked recoverable prospective resources of 301.7 MMboe. The current 3D seismic survey represents a major field execution milestone following completion of the XIQ farm-out in January 2026.
Under the terms of the farm-out, (detailed in the Company’s notification of 19 January 2026) Aspect Georgia may earn up to a 75% working interest in licence XIQ through completion of a staged, fully funded work programme including seismic, exploration and appraisal drilling, and early production facilities. Aspect Georgia also holds an option to increase its working interest to 92.5% in return for additional cash and royalty consideration.
Block is fully carried through the relevant stages of the work programme, including seismic acquisition, exploration and appraisal drilling and, subject to successful results, early production facilities. The staged gross work programme expenditure is estimated at approximately US$95 million (Block Energy internal estimate) and would be fully funded by Aspect Georgia. This structure preserves Block's capital while retaining exposure to a potentially material exploration outcome.
CEO Comment
Paul Haywood, Chief Executive Officer of Block Energy, said:
"Martkopi Terrace is moving decisively from transaction to field execution. Within just a few months, , the programme has safety acquired over half of the planned source points, with field productivity accelerating and recording currently expected to complete by mid October.
"Martkopi Terrace has been independently assessed as containing mean unrisked recoverable prospective resources of 301.7 MMboe. This modern 3D survey is designed to materially improve subsurface definition and identify the strongest potential drilling locations across one of the largest exploration opportunities in our portfolio.
"Crucially, the campaign forms part of an approximately US$95 million staged programme that would be fully funded by Aspect Georgia if Aspect enters into the drilling phase. This preserves Block's capital while providing shareholders with retained exposure to a potentially transformational outcome. We look forward to moving into processing and interpretation and updating shareholders as the programme advances."
Qualified Person Statement
Mr Christopher Brown BSc, MSc, DIC (Block's Technical Director) has reviewed the technical information contained in this announcement, including the referenced prospective resource estimate. Mr Brown is a geoscientist with over 45 years of experience in the oil and gas E&P sector.
ENDS
For further information please visit www.blockenergy.co.uk or contact:
|
Paul Haywood |
Block Energy plc |
Tel: +44 (0)20 3468 9891 |
|
Neil Baldwin |
Spark Advisory Partners Limited |
Tel: +44 (0)20 3368 3554 |
|
Peter Krens |
Tennyson Securities |
Tel: +44 (0)20 7186 9030 |
|
Mark Antelme / Philip Dennis / Kathleen Beams |
Celicourt Communications |
Tel: +44 (0)20 7770 6424 |
Notes to editors
Block Energy plc is an AIM-quoted independent international oil and gas company with production, development, appraisal and exploration assets in Georgia and a post year-end offshore Gabon growth platform.
In Georgia, the Company holds interests in seven Production Sharing Contracts covering an area of 4,256 km² in the central part of the country. These include the XIB and XIF licences, which host Project III's 2.77 TCF of 2C gross contingent gas resources in the Patardzueli-Samgori, Rustavi and Teleti fields, together with 574 BCF of 2U gross prospective resources at South Dome. Project III has an estimated NPV10 of approximately US$2.2 billion (Source: IER, OPC 2024 and internal estimates).
In April 2026, the Company announced a strategic entry into offshore Gabon through a secured convertible loan to Pilgrim Exploration Limited, providing Block with a 76.5% indirect economic interest in the Ndjila (CD2) and Mpari (CD3) PSCs. The two licences cover 5,331 km² and contain four historical oil discoveries - Iguega, Topaz, Ekouata and Pilote - together with material pre- and post-salt exploration potential in an established Gulf of Guinea hydrocarbon fairway.
The Company is structured around a multi-project approach, progressing assets across different stages of development, hydrocarbon type and reservoir characteristics. This approach is designed to deliver a balanced portfolio of production growth, field redevelopment, new discoveries and the commercialisation of substantial gas resources, supported where appropriate by partner funding, carried work programmes and cash from existing producing assets.
Located near the Georgian capital of Tbilisi, Block Energy is well-positioned to contribute to the region's energy landscape. This proximity facilitates operations and underpins the Company's commitment to the economic and energy development of Georgia.
Glossary
3D seismic means a geophysical survey method used to create a three-dimensional image of subsurface geology
LTI means lost-time incident
MMboe means million barrels of oil equivalent
NPV10 means net present value discounted at 10%
Tcf means trillion cubic feet of gas
Vibroseis means a seismic source method that uses controlled ground vibrations to generate subsurface imaging data
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