19 January 2026

Block Energy plc

("Block" or the "Company")

Project IV (XIQ) Farm-out Completion

Block Energy plc (AIM: BLOE), the development and production company focused on Georgia, is pleased to announce that the Government of Georgia has approved the farm-out of licence XIQ (Project IV) and that the transaction is now complete.

The counterparty to the transaction is Aspect Georgia, LLC ("Aspect Georgia"), a US-based subsidiary of the Aspect Energy group, whose website is available here.

Highlights:

·    Government approval received and the XIQ farm-out transaction has completed.

·    Block is fully carried through the staged work programme (including seismic, exploration and appraisal drilling, and early production facilities), with no capital exposure to Block.

·    Staged gross work programme expenditure estimated at approximately US$95 million (Block Energy internal estimate), fully funded by Aspect Georgia.

·    Aspect Georgia to earn up to a 75% working interest through the staged, fully funded work programme, with an option to increase its interest to 92.5% subject to additional consideration.

·    Completion provides positive read-through across Block's adjacent acreage, including its wholly owned and operated Project III and the IX licences.

·    Seismic acquisition expected to commence in 2026.

Transaction Context:

Under the terms of the farm-out, Aspect Georgia may earn up to a 75% working interest in licence XIQ through the completion of a staged, fully funded work programme. Aspect Georgia also holds an option to increase its working interest to 92.5% in return for additional cash and royalty consideration.

The transaction terms remain unchanged from the Company's September 4^th 2025 announcement.

The primary focus of the work programme is the Martkopi Terrace prospect, which was independently assessed by DeGolyer and MacNaughton in 2023 and attributed mean unrisked recoverable prospective resources of 301.7 MMboe. The carried programme is structured to provide a clear pathway from exploration success through appraisal and, subject to results, early production facilities.

The Board views the completion of the XIQ farm-out as a material step forward for the Company's partner-led growth strategy, delivering near-term operational progress without dilutive capital requirements for Block, while preserving meaningful upside.

CEO Comment

Paul Haywood, Chief Executive Officer of Block Energy, said:

"Completion of the XIQ farm-out marks a major step forward for Block. Securing Government approval and closing the transaction with Aspect Georgia brings a well-capitalised, technically credible partner into the licence, providing clear external validation of both the asset and our strategy.

The transaction delivers near-term progress without capital exposure to Block, through a fully carried, staged programme estimated at approximately US$95 million, while preserving meaningful upside.

We now look forward to progressing the work programme and working with our partners to unlock the significant value across Project IV.

Qualified Person Statement

Mr Christopher Brown BSc, MSc, DIC (Block's Technical Director) has reviewed the technical information contained in this announcement, including the referenced prospective resource estimate. Mr Brown is a geoscientist with over 45 years of experience in the oil and gas E&P sector.

ENDS

For further information please visit www.blockenergy.co.uk or contact:

Notes to editors

Block Energy plc is an AIM quoted independent oil and gas production and development company with a strategic focus on unlocking the energy potential of Georgia. With interests in seven Production Sharing Contracts in central Georgia, covering an area of 4,256 km², including the XIB licence which has over 2.77TCF of 2C contingent gas resources, with an estimated Net Present Value 10 ("NPV") of USD 1.65 billion, in the Patardzueli-Samgori, Rustavi and Teleti fields. (Source: IER, OPC 2024 & Internal estimates).

The Company has structured its operations around a four-project strategy, progressed predominantly through partner funding alongside cash flow from existing producing assets. These projects, characterized by development stage, hydrocarbon type, and reservoir, are pursued concurrently to achieve multiple objectives. This includes increasing existing production, redeveloping fields, discovering new oil and gas deposits, and capitalizing on the substantial, yet untapped, gas resource across its licences. The goal is to deliver on multi TCF gas assets, strategically well located for the key EU market, supported by partner funding and cash from existing producing assets.

Located near the Georgian capital of Tbilisi, Block Energy is well-positioned to contribute significantly to the region's energy landscape. This proximity facilitates seamless operations and underscores our commitment to the economic and energy development of Georgia.

Glossary

MMCF/d means millions of standard cubic feet of gas per day
Boe/d means barrels of oil equivalent per day, with each barrel of oil equivalent being 6,000 cubic feet of gas
Bcf means billions of cubic feet of gas
Tcf means trillions of cubic feet of gas