Block Energy plc announced upgraded internal resource estimates for the Rustavi and Teleti fields. Combined with the independently audited 2C recoverable resources on the Patardzueli-Samgori field, the total Project III 2C Contingent Recoverable Resource figure for Patardzueli-Samgori, Rustavi and Teleti fields now stands at over 2.77 TCF, with an estimated Net Present Value of USD 1.65 billion. Internal Resource Upgrade: Following the announcement of the Independent Engineering Report (IER) by Oilfield Production Consultants (OPC) on Patardzueli-Samgori, the Company has reviewed and updated its internal estimates for the Rustavi and Teleti fields in line with the methodologies applied by the OPC report.

Both the OPC IER and the Block Energy Internal Contingent Resource report only consider gas volumes within the natural fracture system. Upside exists within the tight matrix in both the Lower Eocene and Upper Cretaceous reservoirs. Both reports were completed according to Petroleum Management Resource System (PRMS) standards.

The development plan for each field in the mid case sees an early production scheme delivering 30 MMCF/d gas production, rising to plateaus of 200 MMCF/d (each of Patardzueli-Samgori and Rustavi) and 100 MMCF/d (Teleti). Development costs are anticipated to be low on a USD/MMCF basis, given the onshore location of the fields and the proximity of sales infrastructure. Gas quality in all three fields has consistently high CH4 content and no H2S or CO2 detected within the gas tests undertaken to date.

The Company has developed fully costed appraisal programmes for all three fields, with a near-term focus on Patardzueli-Samgori in light of the results of the PAT-E1 well drilled by Schlumberger.