leadf
logo-loader
viewBlock Energy PLC

Block Energy counts down to first gas at West Rustavi

Snapshot

  • Owns oil and gas assets in Georgia
  • Recently acquired adjacent acreage from Schlumberger
  • About to see first gas at West Rusavi
oil rig

Quick facts: Block Energy PLC

Price: 3.39 GBX

AIM:BLOE
Market: AIM
Market Cap: £20.87 m
Follow

What it owns

West Rustavi

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).

Schlumberger

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.

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.

 

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."

 

Video

 

Inflexion points

  • First gas at West Rustavi
  • Schlumberger assets integration

 

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Block Energy PLC named herein, including the promotion by the Company of Block Energy PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Block Energy says Schlumberger Rustaveli acquisition "massively increases...

Block Energy PLC's (LON:BLOE) Technical Manager Jonathan Bedford joins Proactive London to talk about his career in the oil and gas industry and how he intends to use this experience to boost Block Energy's operations. Bedford says he can "flex all my muscles acquired over my time in...

on 30/11/20

2 min read