Block Energy PLC, London, has agreed to sell gold-mining subsidiary Antubia Resources Ltd. and will concentrate on oil and gas development in the Republic of Georgia.
Star Goldfields, wholly owned by HODA Holdings of Ghana, is to pay $600 million for Antubia, which holds a gold concession in western Ghana.
Block Energy has three licenses in Georgia encompassing Norio and Satskhenisi oil fields, which produce at low rates. Its West Rustavi Block XIf Permit has produced oil in the past and contains a large natural gas prospect.
Block Energy Director Paul Haywood said a multiwell workover and sidetrack program can increase production to 1,300 b/d of oil within 12 months of the start of work.
