Block Energy Plc (LON:BLOE) released what it described as excellent initial production results from the Norio field’s well-44.
The well flowed at a rate of 45 barrels per day over a five hour period. In a stock market statement Block said it had made “highly encouraging” progress towards a targeted 25-fold increase in production, with 250 bopd aimed for by the end of the first quarter.
It highlighted that the targeted 250 bopd rate at Norio is in addition to the 650 bopd targeted over at Block’s West Rustavi field by the end of the first quarter of 2019 via a two well sidetrack drilling programme.
READ: Block Energy upbeat as it heads into 2019
Producing at a rate of 900 bopd the company expects to generate £13mln of revenue per year, based on present oil prices.
Block said that the assets will be a highly cash generative platform to build a leading independent oil company.
"We're delighted to announce such an excellent initial recovery at Norio as we work towards our target of producing 250 bopd from the field by the end of H1 2019,” said Paul Haywood, Block Energy chief executive.
“If production results continue to be positive we look forward to making increasingly effective use of the specialist perforation tool at Norio 44 and three further wells.
“We're beginning to witness the fruits of our work in building our Georgian infrastructure and workforce, which now engages some 80 employees and contractors.”
Haywood added: "With our existing production at Norio selling for Brent minus US$10, a combined rate of production at Norio and West Rustavi of 900 bopd would have the potential to generate circa US$13 million in annual revenues at current oil prices, a level that far outstrips our current £7 million market valuation, and one that would enable the company to both grow organically, and to seek out further low cost, high potential production opportunities.”