Block Energy PLC (LON:BLOE) told investors that production has now resumed at the West Rustavi field, with the impressive 16aZ well now coming online.
Drilled and tested earlier this year the well caught the attention of investors as it delivered test production rates of around 1,100 barrels per day – which was more than three times greater than expected.
READ: Block Energy takes full control of West Rustavi asset
The well has now come online at an initial rate of 360 barrels oil equivalent per day – comprising 295 barrels of oil and 390,000 cubic feet of gas – it remains in the ‘clean up’ phase to recover lost drilling fluid and the rate will be gradually increased over time to establish a sustainable flow rate.
At the same time, Block is now preparing for horizontal drilling in the 38z well, which is seen as analogous to 16aZ. It will be one of four side track wells planned in Block’s 2019/2020 drill programme.
"We are pleased to resume production at well 16aZ and look forward to establishing with due caution a stable production rate for our best performing well to date. The Well produced exceptional test rates earlier this year and offers excellent netbacks of $35/bbl at $65/bbl Brent," said Paul Haywood, Block chief executive.
“With the resumption of production at well 16aZ our fully-funded back-to-back multi-well drilling programme continues to gather momentum.”
Haywood added: “We now keenly anticipate ramping up production with the sidetracking this summer of well 16aZ's neighbouring well, 38Z.
“Three of West Rustavi's other wells will also be sidetracked in the Middle Eocene structure, and two of them tested for their historic gas discoveries in the Lower Eocene.”
The Block boss also highlighted that an upcoming 3D seismic programme aims to identify optimal locations for wholly new horizontal wells across the West Rustavi field.