Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce an operations update from its Norio licence (100% working interest), Satskhenisi licence (90% working interest) and the West Rustavi permit (25% working interest) which collectively have net proven oil reserves of 1.5 million bbls plus 60 million bbls of oil and c.600 billion ft3 of gas classified as 2C contingent resources.
- On track for near-term commencement of phase one of three phase work programme focussed on scaling up production to 900 barrels of oil per day (‘bopd’) within 18-24 months via a fully funded, low-cost / low-risk workover and sidetrack programme of existing wells across licence base.
- Access to further 20km of existing high quality 2-D seismic data across West Rustavi Licence.
- Provides improved understanding of the structural faulting in licence area.
- Validation of preferred well locations and horizontal pathway.
- Bolstered technical team on the ground in Georgia as work programme intensifies.
- Appointed four geologists/geophysicists and one logistical and HSE manager with significant Georgian and multi-national experience.
- Service rig inspections complete with final negotiations for contracts underway ahead of mobilisation to three locations.
- First rig to mobilise to Satskhenisi to complete a short three well workover programme during Q3 2018.
- On completion at Satskhenisi, rig to move to Norio where eight candidate wells have been selected.
- One workover rig and one drilling rig to be mobilised to West Rustavi targeting 300 bpd from first high-impact horizontal side-track well.
- Enhanced perforating system identified with potential to increase production rates by two or threefold over conventional perforating technology – finalisation of service contract imminent.
Paul Haywood, Director of Block Energy, said: “We have been highly active on the ground since our IPO in June, preparing for an incredibly busy end to the year as we prepare to mobilise rigs to locations across our portfolio. Thanks to our access and review of additional existing seismic data, we have increased our confidence and understanding of our West Rustavi permit. Having recently increased our working interest to 25%, we look forward to commencing drilling at the first of several high-impact locations as per our work programme which will earn our eventual 75% working interest in the permit.
“In line with our strategy to increase production and generate significant value we have been evaluating an enhanced perforating system and look forward to applying this exciting technology once we have finalised contracts. As activities have increased on the ground we have made a number of new high calibre appointments to our technical team – we welcome them on board. Their experience and expertise will prove invaluable during this exciting time for Block. I look forward to providing further updates with regards to the various work streams as we look to mobilise drill rigs in the near-term and embark on our programme to ramp up production to 900 bopd within 18 – 24 months.”