Patardzueli-Samgori Block XIB

Block Energy’s Carbon Capture and Storage Opportunity is a carbon sequestration project concept identified within the Block XIB licence in Georgia (the country), representing a potential large-scale CCS hub tied to the company’s existing oil and gas interests in the region. Geological studies commissioned by Block Energy estimate that the Middle Eocene volcaniclastics in Block XIB could offer very high CO₂ storage capacity, with reservoir-scale estimates of around 256 million metric tonnes and basin-wide potential up to 8.7 billion metric tonnes of CO₂, placing it among the larger CCS opportunities in Europe/Caucasus region. Importantly, the reservoir’s igneous and volcanic rock composition is conducive to mineral trapping (mineralisation), whereby injected CO₂ dissolved with water reacts to form solid carbonate minerals, a mechanism that can deliver permanent storage far more rapidly than in typical sedimentary saline formations. Block Energy has advanced the concept into pilot testing and Phase 2 development, including a successful initial CO₂ injection pilot in August 2025 through its partner Rustavi Azot (Indorama). In that pilot, approximately 13.6 tonnes of CO₂ were injected into the Patardzeuli Middle Eocene reservoir, and early results demonstrate rapid mineralisation and no surface leakage, materially de-risking the storage method and supporting future scale-up. Early technical results suggest the Patardzeuli/Samgori reservoir system could feasibly store hundreds of millions of tonnes of CO₂ via mineral trapping, with mid-case estimates around 151.5 Mt for the Patardzeuli portion alone. Block is now conducting monitoring and verification work and planning for broader commercialisation and potential industrial CCS integration in the region.