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Block Energy ‘highly encouraged’ as legacy well in West Rustavi field flows 500 barrels

Published: 07:28 14 Dec 2018 GMT

oil and gas operations
Block is aiming for 650 bopd of production from the field in Q1 2019

Block Energy Plc (LON:BLOE) has revealed that the West Rustavi 16a legacy well has flowed 200 barrels of oil over a ten-hour test. The company added that a further 300 barrels of oil were recovered in further tests over subsequent days.

It confirms the well lies in an active hydrocarbon system, the reservoir still contains reserves, and it remains pressurised. 

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Operations at West Rustavi form part of the group’s efforts to establish production of 650 barrels of oil per day in the first quarter of 2019. It also includes a two-well sidetrack drilling programme, which kicks off with a sidetrack from Rustavi 16a.

Elsewhere, at the Norio field, the company aims to hit a 250 bopd target through well workovers and sidetracks.

“The recovery of more than 500 barrels of oil from the legacy vertical wellbore at West Rustavi 16a is highly encouraging and bodes well for our horizontal sidetrack programme at the field which is due to begin early next year,” said Paul Haywood, Block Energy chief executive.

He added: “Having raised £5mln by the time of our IPO we are fully funded to undertake our work programmes at West Rustavi and Norio, which together target a combined 900 bopd net to Block by Q1 2019. 

“With our existing production at Norio selling for Brent minus US$10, a production rate of 900 bopd has the potential to generate circa US$13mln in annual revenues at current oil prices, a level that far outstrips our existing £7mln market valuation.”

Haywood also highlighted that Block intends to continue the growth effort beyond 900 bopd.

“With four more existing wells identified as suitable sidetrack opportunities at West Rustavi, an inventory of historic wells at Norio, and a potential 28 MMbblof contingent resources at Satskhenisi, the opportunity to significantly scale our cash flow further is clear.”

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