Block Energy Plc (LON:BLOE) has hired a rig deal for a multi-well programme planned across its asset base in Georgia.
The arrangement with Georgian firm JSC Norio Oil Company provides unlimited and exclusive access to two A50 workover rigs and a ZJ40 drilling rig, along with access to a variety of other drilling and workover related equipment.
It is a six-month contract, with an option to extend for a further six months.
The company anticipates that the first rig will be mobilised within the next few days, in order to commence the scheduled work.
READ: Block Energy readies for Georgia well programme
The programme aims to rapidly increase production across Block Energy's licence base up to 900 barrels of oil per day within 24 months.
"The signing of this Agreement represents the culmination of a considerable amount of work by the team since our AIM IPO in June,” said Paul Haywood, Block Energy director.
“Importantly, the work programmes across our three licences in Georgia can now get underway in the knowledge that we have secured access to the required rigs on favourable terms.
“As well as generating significant cost savings for the Company and mitigating equipment availability risks, the agreement provides us with full control over forthcoming operations as we look to embark on our low risk, low-cost work programmes to scale up oil production to 900 bopd within 18 -24 months.”
Haywood added: "A key part of our strategy is to deploy advanced technologies to enhance recovery rates and with this in mind, we are also in negotiations to secure a drilling technology that is unique to Georgia to re-complete up to eight wells at our Norio field.
“I look forward to updating the market on when these negotiations have been completed and also on the commencement of operations in the field in what promises to be the start of a highly active period for the company."