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    Block to Close Georgian Schlumberger Deal on Nov 23


The pair have also amended the transaction terms.

by: Joe Murphy

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Block to Close Georgian Schlumberger Deal on Nov 23

Georgia-focused junior Block Energy has amended a deal to acquire rights to two oil and gas permits from US services group Schlumberger, it said on November 20, noting that the transaction's completion was now expected on November 23.

Block, which is developing several oil and gas fields near Tbilisi, signed a sales and purchase agreement in March to assume Schlumberger's production-sharing agreements at block XIB and IX, for no upfront payment.

Under the amendments, Block will gain 29,000 barrels of crude oil inventory, and Schlumberger will also sign a transition services agreement with the company to assist with the handover.

"We look forward to November 23, when we will commence ownership of these transformational assets," Block CEO Paul Haywood said. "They will truly define our future as an oil and gas company in Georgia."

Block said in March it would net 64mn barrels of oil equivalent in proven and probable reserves and 245 b/d of initial oil production from the transaction. The blocks also hold 600bn ft3 of initial in-place gas.