What it owns
Block owns 100% with the field holding an estimated 38 MMbbls (million barrels) of gross contingent resources ('2C') of oil which the company hopes to mature to 2P reserves.
In addition, there are legacy gas discoveries supporting a gross contingent ('2C') resource of 608 BCF (Source: CPR).
Block recently acquired new acreage in Georgia, picking up two areas held by Schlumberger for no upfront cash consideration.
Schlumberger will instead be given options over Block Energy stock - 120mln shares, or 23.3% of the company, ascribing a base deal value of around US$6mln.
The firm has acquired Block XI which is described as “Georgia's most productive block” - over 180mln barrels of oil have been produced historically, with a peak of 67,000 barrels of oil per day (bopd) in the mid-1980s – and, it adds 64mln barrels (boe) of 2P oil reserves to the group.
Block is undertaking a programme of workovers and sidetracks at Norio, also in Georgia, to boost production to 250 barrels per day.
A potential 28mln barrels where exploration is in the process of getting underway.
How it's doing
In January, Block Energy PLC (LON:BLOE) said it is now awaiting third-party progress necessary for ‘first gas’ at the West Rustavi field, in Georgia, having completed all steps under its control including the construction and commissioning of the Early Production Facility and gas gathering line.
‘First gas’ is now expected in either late January or early February.
In November, the firm completed the acquisition of Schlumberger Rustaveli Company Limited (SRCL), securing the transformational licences for Georgian onshore blocks IX and XI.
The deal significantly increases production and provides several development and exploration opportunities that the company plans to advance in the coming months.
What the boss says: Paul Hayward, chief executive
“We are on the cusp of our inaugural gas sales."
“The commencement of gas sales will be a significant event for Block and is testament to the capability of our team, who have continued to prioritise this project, despite some significant operational and travel challenges associated with COVID-19.”
“As well as the commencement of gas sales, we are pleased to be recommencing production and sales of crude oil at West Rustavi with the Brent oil price now over US$50 per barrel."
- First gas at West Rustavi
- Schlumberger assets integration