The company owns a 25% stake in West Rustavi which hosts some 608bn cubic feet of gas and 37.9mln barrels of oil.
It becomes effective from September 1 and it will allow planned works to be carried out.
“We are delighted to have received the Production Sharing Contract for West Rustavi which will allow us to hit the ground running with our high-impact work programme,” said Paul Haywood, director at Block Energy.
The plan is to conduct a programme of well work-overs and new drilling, with the first horizontal side-track well anticipated to get underway in the fourth quarter (allowing production from the well in early 2019)
Initial production from the horizontal is expected to around 300 barrels per day.
Four additional existing wells have been identified as candidates for future sidetracks.
Haywood added: “With multiple discoveries already made within the Licence which lie on trend with the same play currently being drilled by Schlumberger on neighbouring licence, West Rustavi represents significant development potential and value uplift for the Company.
“I look forward to updating shareholders as further progress is made."