Project IV 3D Seismic Acquisition Completed

Block Energy completes $95m seismic survey over 301.7 MMboe prospect in Georgia.

What the company is saying

Block Energy plc announces the completion of 3D seismic acquisition over the Martkopi Terrace prospect in Georgia, highlighting it as a major operational milestone within Project IV. The company emphasizes the scale of the opportunity, citing an independent assessment of 301.7 MMboe of gross mean unrisked recoverable prospective resources by DeGolyer and MacNaughton (2023). The announcement stresses that the seismic program is part of a staged, fully funded work programme with an estimated gross expenditure of US$95 million, and asserts that Block is fully carried through the relevant phases. The company frames the partnership with Aspect Georgia, a subsidiary of Aspect Energy, as a key enabler, with Aspect able to earn up to a 75% working interest and an option to increase to 92.5% for additional consideration. CEO Paul Haywood describes the milestone as evidence of a partner-funded strategy and underscores the intention to replicate this model across the portfolio. The tone is confident, focusing on the potential scale and the capital-light exposure for Block, while operational next steps are described as data processing and interpretation to inform future drilling.

What the data suggests

The completion of 3D seismic acquisition at Martkopi Terrace marks the end of the data-gathering phase for this prospect, with the next step being processing and interpretation. The prospect is independently assessed at 301.7 MMboe of gross mean unrisked recoverable prospective resources, but this figure is not a reserve and carries significant technical and commercial risk. The seismic program is part of a staged work programme with an estimated gross expenditure of US$95 million, fully funded by Aspect Georgia, meaning Block bears no direct capital risk for these phases. Aspect Georgia may earn up to a 75% working interest in licence XIQ, with an option to increase to 92.5% in return for further cash and royalty payments, which would dilute Block's ultimate economic interest. Block holds interests in seven Production Sharing Contracts in Georgia covering 4,256 km², and Project III is cited as having 2.77 TCF of 2C gross contingent gas resources and an NPV10 of approximately US$2.2 billion, but these are also pre-development figures. In Gabon, Block has a 76.5% indirect economic interest in two PSCs covering 5,331 km², with four historical oil discoveries. The announcement is rich in resource and partnership detail but does not provide current production, revenue, or cash flow figures, and all headline numbers are prospective or contingent, not proven or producing.

Analysis

The announcement is upbeat, highlighting the completion of 3D seismic acquisition and large resource estimates, but most of the value is still prospective and long-dated. While the seismic acquisition is a real milestone, the headline figures (301.7 MMboe, 2.77 TCF, $2.2bn NPV10) are all unrisked, pre-drill, or contingent resources, not reserves or production. The $95 million capital program is described as fully funded and Block is carried, but the actual commercial impact is deferred until after further data processing, drilling, and appraisal. The tone is promotional, referencing a 'balanced portfolio' and 'substantial gas resources,' but there is no disclosure of current production, revenue, or profitability. The gap between narrative and evidence lies in the heavy emphasis on potential scale and value, while the only realised operational step is the seismic survey. The announcement is not red-flag hype, but it does inflate the sense of imminent value creation.

Risk flags

• ●Resource estimates of 301.7 MMboe at Martkopi Terrace and 2.77 TCF at Project III are unrisked and prospective or contingent, not reserves, so there is a high risk that actual recoverable volumes and commercial value will be significantly lower.
• ●Block Energy's economic interest in licence XIQ will be diluted as Aspect Georgia earns up to 75% (and potentially 92.5%) working interest through funding the work programme, reducing Block's direct upside if the project is successful.
• ●The US$95 million gross expenditure for the work programme is described as fully funded and Block is said to be carried, but the announcement does not detail the terms or duration of the carry, leaving uncertainty about Block's exposure to future capital requirements if the project advances.
• ●No current production, revenue, or cash flow figures are disclosed, making it impossible to assess the company's near-term financial health or ability to self-fund future activities outside carried programs.
• ●The timeline to value realisation is undefined, with no stated drilling dates or development milestones, so there is a risk of extended delays before any commercial outcome is achieved.

Bottom line

Block Energy's completion of a US$95 million seismic program over the Martkopi Terrace prospect is a real operational milestone, but all headline figures—301.7 MMboe prospective resources and US$2.2 billion NPV10—are unrisked and not yet commercial. The company's capital-light exposure via a fully funded, partner-carried work programme limits downside risk but also means Block's ultimate economic interest will be diluted to as low as 7.5% if Aspect exercises its option. No near-term production or revenue is in sight, and the next steps are data processing and interpretation, with no drilling timeline given. Investors should see this as a step in a long-term exploration process rather than a near-term value trigger. The most important takeaway is that while the scale of the opportunity is large, any commercial outcome remains distant and highly uncertain until drilling and appraisal results are delivered.

Announcement summary

(AIM:BLOE) Block Energy plc announced the completion of 3D seismic acquisition over the Martkopi Terrace prospect within licence XIQ, part of Project IV in Georgia. The Martkopi Terrace prospect has been independently assessed at 301.7 MMboe of gross mean unrisked recoverable prospective resources by DeGolyer and MacNaughton (2023). The 3D seismic survey is part of Aspect Georgia's staged, fully funded work programme, with estimated gross expenditure of approximately US$95 million according to Block's internal estimate. Block Energy is fully carried through the relevant phases of this programme. Aspect Georgia, a subsidiary of Aspect Energy, may earn up to a 75% working interest in licence XIQ through completion of the staged work programme, which includes 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. The data from the completed seismic acquisition will now be processed and interpreted to refine the prospect definition and support future exploration drilling location selection. Block Energy holds interests in seven Production Sharing Contracts in Georgia, covering an area of 4,256 km². The XIB and XIF licences host Project III's 2.77 TCF of 2C gross contingent gas resources in the Patardzueli-Samgori, Rustavi and Teleti fields, and 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, Block Energy 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 Gabonese licences cover 5,331 km² and contain four historical oil discoveries: Iguega, Topaz, Ekouata, and Pilote. Block Energy is structured around a multi-project approach, progressing assets across different stages of development, hydrocarbon type, and reservoir characteristics. Paul Haywood is the Chief Executive Officer of Block Energy plc. Christopher Brown BSc, MSc, DIC is Block's Technical Director and has reviewed the technical information in the announcement.

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