Block Energy Plc (LON:BLOE) told investors that it is on track for the start of a phase three work programme which will aim to scale up production in Georgia.
The programme, due to start in the near-term, will target production growth up to 900 barrels of oil per day within 18 to 24 months.
It is a fully-funded programme which is described as being low cost and low-risk operations, involving work-overs and sidetracks to existing wells.
Rig contract negotiations are at a final stage, ahead of a short three well workover in the Satskhenisi area to start during the third quarter. Subsequently, the rig will move onto to the Norio area where eight well candidates have been selected.
WATCH: Block Energy increases stake in ‘highly prospective’ West Rustavi licence
Separately, two rigs will be mobilized to the West Rustavi area where high impact sidetracks will target 300 bopd.
"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,” said Paul Haywood, Block Energy director.
“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.”
Haywood added: "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.”