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    Block Energy Takes Full Control Of Georgian Licence


It has bought out the government's stake, giving it more control.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Corporate, Mergers & Acquisitions, Exploration & Production, News By Country, Georgia

Block Energy Takes Full Control Of Georgian Licence

Georgia-focused Block Energy has raised its share in the West Rustavi licence area from 71.5% to 100%, in order to gain greater leverage over its development.

In an exchange filing on July 15, the London-listed producer said it had bought the extra stake from state-owned Georgia Oil and Gas for $250,000 in cash and $500,000 in issued shares.

West Rustavi, located in western Georgia near the capital Tbilisi, holds 0.9mn barrels of proven and probable oil reserves, according to Block. Its best-estimate contingent resources are estimated at 38mn barrels of oil and 17.2bn m³ of gas.

Block secured equipment earlier this month for a back-to-back drilling programme at West Rustavi, aimed at expanding oil production and testing four previous gas discoveries.