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Block Energy’s latest sidetrack flows 550 boepd in tests, kicks off WR-51Z drilling

“WR-38Z promises to be a pivotal well for Block,” said chief executive Paul Haywood

Block Energy PLC - Block Energy’s latest sidetrack flows 550 boepd in tests, kicks off WR-51Z drilling

Block Energy PLC (LON:BLOE) has told investors that multi-rate production testing presently underway on the WR-38Z well at the West Rustavi field has so far shown peak results of around 550 barrels of oil equivalent per day (boepd).

The peak production rate in the tests to date – following a clean-up period to stabilise the well and recover drilling fluids – comprised 300 barrels of oil plus 1.5mln cubic feet of gas per day.

READ: Block Energy says WR-38Z well is flowing naturally

It said that the WR-38Z tests have confirmed West Rustavi's rich gas potential, and Block is now accelerating the monetisation of its gas reserves by installing a central gas processing facility.

Permitting work is now underway alongside this programme, with a view to bringing the gas production onstream during the second quarter of 2020.

Elsewhere, drilling has now begun on the WR-51Z well which will be the third new sidetrack well at West Rustavi.

Block noted that the first sidetrack well, WR-16aZ, is set for a restart in operations in early February. Previously, in December, the well was suspended to enable the installation of improved facilities and it is intended that a well intervention programme will allow a further 100-200 boepd to be added to West Rustavi.

WR-38Z promises to be pivotal well

"We are glad to announce that our development programme is moving full-speed ahead on multiple fronts,” said Paul Haywood, Block Energy chief executive.

"Our extended production test of WR-38Z has allowed us to thoroughly evaluate the well's performance, and define what we consider to be stable production parameters.

“WR-38Z promises to be a pivotal well for Block.”

Haywood noted that West Rustavia has been estimated to host some 608bn cubic feet of contingent gas resources which can now start to be addressed.

“We are working with our Georgian partners to expedite the offtake and sale of gas from the field,” he said.

“Our gas sales will help meet Georgia's strong demand for energy, to which we are already contributing through regular oil sales.”

Haywood added: “Block is hitting the ground running as we enter 2020, implementing an ambitious programme made possible by the team's hard work and the excellent relationships we have developed with our Georgian partners at the local and national levels.

“Furthermore, we welcome the opportunity the Black Sea exploration tender offers for the further development of Georgia's oil and gas industry. We keenly anticipate updating our shareholders on our progress."

Georgia tender process opens

On 15 January, the Georgian State Agency of Oil and Gas (GOG) announced the opening of a tender process to international oil and gas firms.

Block noted the interest and involvement of ExxonMobil and Schlumberger in Georgia to date.

The company added that, in this context, it continues to “maintain excellent relationships” with Georgian partners Bago, GOGC and Georgia Oil and Gas Ltd (GOG). Specifically, it noted the complimentary activities of GOG which is focused on advancing “deep frontier exploration plays while Block pursues shallower oil and gas development and production opportunities.”

Block said: “GOG's principal target formations lie below Block's producing Miocene reservoir in the Norio field: the company continues to benefit from GOG's seismic work and planning of exploration wells.”

Quick facts: Block Energy PLC

Price: 2.25 GBX

AIM:BLOE
Market: AIM
Market Cap: £8.87 m
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