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(Sharecast News) - Block Energy said in an update on Tuesday that it is advancing multiple projects across its Georgian portfolio, including farmout negotiations, a carbon capture and storage (CCS) pilot, new drilling activity and potential new ventures.
The AIM-traded company said it was in talks with multiple parties over a farmout of Project III, while discussions with a leading international exploration and production company on a potential farmout of the XIQ licence under Project IV were progressing, with strong technical and commercial alignment reported.
It said the CCS injection pilot, due to start this quarter, had completed tracer testing confirming connectivity between injection and monitoring wells.
Block said the data would support the verification of carbon dioxide mineralisation, with success positioning the company as a first mover in the region and opening potential carbon credit revenue streams and industrial decarbonisation partnerships.
At Project I, a sidetrack well was scheduled to spud in late September or October using directional slim-hole technology for the first time in Georgia.
The pilot well was expected to cost around 40% less than previous conventional sidetracks and could unlock further low-cost drilling opportunities in Projects I and II.
Current production averaged about 480 barrels of oil equivalent per day, with the company remaining operationally cash-flow positive.
Block said it was also considering exercising its option to acquire a 20% stake in the newly awarded XIH production sharing contract in Georgia, alongside evaluating off-market international opportunities aligned with its capital-efficient strategy.
"The upcoming CCS injection pilot marks a major milestone in our decarbonisation strategy," said chief executive Paul Haywood.
"We are also preparing to pioneer a new slim-hole drilling technique, aimed at delivering significant cost cuts and productivity gains.
"Throughout, our focus remains firmly on capital discipline, technical innovation, and long-term value creation across the portfolio."
At 1339 BST, shares in Block Energy were down 0.11% at 0.87p.
Reporting by Josh White for Sharecast.com.