Block Energy upbeat on latest testing results

The AIM-traded firm said the results had demonstrated its concept of unswept oil at Patardzeuli.

It said the well was currently on production at 45 barrels of oil per day, with the “encouraging results” meaning the company would continue to pursue ‘project II’, being the full field redevelopment of Patardzeuli.

Well JSR-01 DEEP was the firm’s first project II appraisal well, located in the southwest of the Patardzeuli field.

The well was drilled 470 metres deeper than the donor JSR-01 well, close to the original oil-water contact.

Drilled at an inclined angle, the company said it allowed the testing of different zones to help evaluate the remaining oil potential, which would inform future drilling and redevelopment plans.

The field was acquired by the company in 2020, and previously produced 98 million barrels of oil between 1975 and 1985.

Block Energy said the results of JSR-01 DEEP were being incorporated into the subsurface model, before an update of the Patardzeuli contingent resources.

That would support full-field redevelopment plans through the deepening of existing vertical wells, and the design and execution of horizontal wells.

Unswept oil in the field would be initially targeted by low-cost drilling techniques using the company's recently upgraded A-80 service rig for an initial well-deepening programme across the field, with average costs per deepening operation expected to be in the region of $0.1m.

An opportunity set of 15 existing vertical wells was being ranked to define the optimal deepening candidates, Block Energy confirmed.

Following the deepening of those wells, the firm said it would then focus on horizontal drilling, designed to sweep larger undrained areas and deliver superior productivity versus vertical wells, as demonstrated in the West Rustavi-Krtsanisi and Ninotsminda fields.

“We are pleased with the results of the appraisal programme on JSR-01 DEEP,” said chief executive officer Paul Haywood.

“I would like to thank the operational and subsurface teams, who employed drilling techniques and reservoir characterisation technologies not previously used in Georgia to advance this project.

“They have delivered a comprehensive and successful testing programme that has allowed us to gain further confidence in the commerciality of project II full-field redevelopment potential.”

At 1146 GMT, shares in Block Energy were down 6.53% at 1.15p.

Reporting by Josh White for Sharecast.com.