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Block Energy PLC on Thursday saw it shares surge as it reported the conclusion of negotiations for the farmout of licence XIQ. Shares in Block Energy climbed 29% to 1.09 pence on Thursday afternoon in London. The Georgia-focused oil and gas company said negotiations for the farmout of licence XIQ, which is part of Project IV, to an unnamed ‘leading international E&P company’ have now concluded. All necessary agreements have been finalised and sent to the government of Georgia for approval, the company said, with approval expected in the fourth quarter of this year, or in the first quarter of 2026, at which point the deal becomes legally binding. The XIQ licence is currently held by Georgia Oil & Gas Ltd, with a 68% operating stake, Georgia Oil & Gas Corp with a 22% interest, and Block Energy, which owns a 10% stake with an option to increase to 22%. The unnamed farm-in partner will acquire up to a 75% working interest in the licence under the terms of the deal and will receive an option to move to 92.5% interest in XIQ following the execution of an agreed work programme, in return for cash and royalty payments. Block Energy noted there can be no certainty the deal will complete. ‘We are pleased to have agreed terms alongside our partners for the farm out of XIQ to a leading international E&P company,’ said Chief Executive Paul Haywood. ‘The successful conclusion of negotiations represents a major step for the development of the XIQ license and a material milestone for Block Energy and our shareholders...Whilst there can be no certainty that the transaction will complete, the effort and progress from the XIQ partners and farminee provides confidence in a successful outcome. At completion, the agreement will not only unlock the potential of XIQ but should provide momentum to the ongoing farmout of Project III as well as other licenses within the Project IV portfolio.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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