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Block Energy PLC

Block Energy readies for second sidetrack at West Rustavi

Snapshot

In August, Block said preparations are underway for well 38z, the next sidetrack at West Rustavi.

oil rig

Quick facts: Block Energy PLC

Price: £0.07

Market: AIM
Market Cap: £26.96 m
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  • Block Energy has oil and gas assets in Georgia
  • A sidetrack at West Rustavi 16a was among the best wells yet drilled in Georgia
  • The well flowed oil at a rate of 1,100 barrels per day against a targeted rate of 325 bopd
  • Preparations underway for second sidetrack at West Rustavi

 

What it owns

West Rustavi

Block now owns 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.

In August, Block said preparations are underway for well 38Z, the next sidetrack at West Rustavi.

Schlumberger

Schlumberger is drilling across the licence adjacent West Rustavi 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.

Norio

Block is undertaking a programme of workovers and sidetracks at Norio, also in Georgia, to boost production to 250 barrels per day.

Satskhenisi

A potential 28mln barrels where exploration is in the process of getting underway.

What the boss says: Paul Haywood

Well 16aZ was restricted by storage capacity but having now acquired additional facilities it is back on track again.

We have to be delicate with the reservoirs in Georgia, says Haywood,

“It’s to nobody's benefit to run 16aZ too hard until we have absolute clarity on the optimal level of production.”

Well 38z is the next well to be drilled with the spud date to be announced shortly.

The well is a mirror of how 16aZ was drilled and is up-dip so what was learned from the first well can be applied here, he adds.

Beyond Well 38Z, Well 30 is scheduled for later in the year with two more wells planned in 2020.

Block raised £12mln earlier in the year and is fully funded for all this work said Haywood.

Latest video 

 

Inflexion points

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 West Rustavi

Exploration at Satskhenisi to confirm new prospective resources

Company moves cashflow positive as production ramps up

 

Blue Sky 

Production rises eventually to between 8-10,000 barrels per day.

Schlumberger well can XIB can prove up major oil play.

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Watch

Full interview: Non-exec Chris Brown explains Block Energy's upcoming...

Chris Brown, industry veteran and non-executive director at Block Energy PLC (LON:BLOE), explains the thinking and aims of the upcoming drill programme at West Rustavi in Georgia. Georgia is an amazing geological structure, he explains to Proactive,  but unlike more uniform structures it...

1 week, 6 days ago

3 min read