Interim results, for the six months ended June 30, highlight a busy period for the growing small cap oil and gas firm.
It is fully-funded for well programmes, taking place through into 2020, which aim to increase oil production and appraise gas discoveries at West Rustavi.
As part of the campaign the company is building a new central production facility capable of handling output in the order of 4,000 to 5,000 barrels per day.
Block, last week, told investors that a sidetrack programme had begun for the new WR-38Z well, located ‘on-trend’ and ‘up-dip’ of the previously drilled WR-16aZ sidetrack.
It added that WR-16aZ “continues to flow strongly” though performance had ‘varied significantly’ due to equipment failure that resulted in certain non-hydrocabon producing parts of the well remaining open. Flows were measured at 230 barrels per day, with a water cut of 78%, while gas flow was described as “significantly higher than anticipated”.
Production operations continue at the Norio and Satskhenisi projects.
In terms of its financial results, Block reported a US$3.48mln loss including US$3.13mln of admin expenses. It generated some US$151,000 of revenue, with cost of sales stated at US$489,000.
Block ended June with US$13.19mln of cash and equivalents. In May, some £12mln was raised via equity placing to fund the planned work programmes.
“We look forward to continuing to execute our West Rustavi work programme during the remainder of 2019 and 2020, and to reviewing new opportunities in Georgia and the wider region,” chief executive Paul Haywood said in the statement.
He added: “We have a fully funded five well drilling programme in the months ahead, providing our investors multiple, near-term value creating opportunities.”