AIM-listed Block Energy PLC (LON:BLOE) shares soared after latest flow test at West Rustavi in Georgia
A well sidetrack at West Rustavi 16a was among the best wells yet drilled in Georgia
In testing, the well produced oil at a rate of 1,100 barrels per day against a targeted rate of 325 bopd
Flow test showed continued steady production that has been intentionally choked back to 700 barrels daily
The initial well performance is better than any well drilled in Georgia in the last 50 years, Block said
Company value has more doubled to £27.5mln (9.8p)
What it owns
Currently a 71.5% working interest which is set to rise to 100% following an agreement in February.
The field contains an estimated 38 MMbbls (million barrels) of gross contingent resources ('2C') of oil which, consequent to results at 16a, the Company hopes to mature to 2P reserves.
In addition, it holds legacy gas discoveries supporting a gross contingent ('2C') resource of 608 BCF (Source: CPR).
Following the current build-up phase, the 16a sidetrack will be placed on production using the field's existing test facilities and the oil trucked to a nearby oil storage facility.
The 16a horizontal sidetrack at West Rustavi was the first of two at the prospect targeting a combined gross production of 650 bopd.
In addition to the sidetrack, the original, legacy 16a well flowed at more than 200 barrels per day in a test at the end of 2018, with a further 300 barrels from tests in the following days.
Block is undertaking a programme of workovers and sidetracks at Norio, also in Georgia, to boost production to 250 barrels per day.
Schlumberger is drilling across the licence adjacent to Norio targeting a potentially huge discovery.
"With ExxonMobil recently entering the country and ongoing operations across Schlumberger's 100% owned position next to our own licences, Georgia's potential as a hydrocarbon region is being recognised by the industry.“
What the boss says: Paul Haywood
“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.”
“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.”
Stable production from West Rustavi legacy and sidetrack wells
More horizontal sidetracks scheduled for West Rustavi
Schlumberger completes drilling and publishes results for Permit XIB, next to Norio
Exploration at Satskhenisi to confirm new prospective resources
Company moves cashflow positive as production ramps up