Block Energy makes solid progress following June IPO

The AIM-traded firm said the projects collectively had net proven oil reserves of 1.5 million barrels, plus 60 million barrels of oil and around 600 billion cubic feet of gas classified as 2C contingent resources.

It said it was “on track” for near-term commencement of phase one of three phase work programme focussed on scaling up production to 900 barrels of oil per day within 18-24 months via a fully funded, low-cost and low-risk workover and sidetrack programme of existing wells across its licence base.

It said it had access to a further 20km of existing “high quality” 2D seismic data across the West Rustavi licence, which would provides an improved understanding of the structural faulting in licence area and validate the preferred well locations and horizontal pathway.

The company had also reportedly bolstered the technical team on the ground in Georgia, as the work programme intensified, with the appointment of four geologists and geophysicists and one logistical and HSE manager with “significant” Georgia and multinational experience.

Service rig inspections were now complete, the board said, with final negotiations for contracts underway ahead of mobilisation to three locations.

The first rig would mobilise to Satskhenisi to complete a short three well workover programme during the third quarter, after which it would move to Norio where eight candidate wells had been selected.

One workover rig and one drilling rig would be mobilised to West Rustavi, targeting 300 bopd from first high-impact horizontal side-track well.

Block Energy also said an “enhanced” perforating system had been identified, with the potential to increase production rates by two or threefold over conventional perforating technology with the finalisation of service contract “imminent”.

“We have been highly active on the ground since our IPO in June, preparing for an incredibly busy end to the year as we prepare to mobilise rigs to locations across our portfolio,” said Block Energy director Paul Haywood.

“Thanks to our access and review of additional existing seismic data, we have increased our confidence and understanding of our West Rustavi permit.

“Having recently increased our working interest to 25%, we look forward to commencing drilling at the first of several high-impact locations as per our work programme which will earn our eventual 75% working interest in the permit.”

Haywood said that, in line with the firm’s strategy to increase production and generate “significant” value, the board had been evaluating an enhanced perforating system and looked forward to applying that “exciting technology” once it had finalised contracts.

“As activities have increased on the ground we have made a number of new high calibre appointments to our technical team - we welcome them on board.

“Their experience and expertise will prove invaluable during this exciting time for Block.

“I look forward to providing further updates with regards to the various work streams as we look to mobilise drill rigs in the near-term and embark on our programme to ramp up production to 900 bopd within 18 -24 months.”