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(Alliance News) - Block Energy PLC shares rose on Tuesday morning after oil and gas company said revenue nearly tripled in the final quarter of 2021, while adding that its JKT-01Z well had reached target depth.
Block Energy was up 10% at 1.21 pence on Tuesday in London.
For the three months that ended December 31, the London-based company with oil and gas projects in Georgia reported total revenue of USD2.6 million, up from USD901,000 in the third quarter.
Revenue from oil was behind the rise, more than tripling to USD2.4 million in the fourth quarter from USD742,000 in the third quarter. Gas revenue slipped to USD109,000 from USD159,000.
Gross production remained unchanged from the previous quarter at 34.6 thousand barrels of oil equivalent.
Block Energy said that well JKT-01Z had reached target depth at 2,565 metres. Considerable mud losses were encountered during drilling which suggested the well had intersected multiple open fractures, Block Energy explained.
Completion operations are now underway and will be followed by clean-up operations to unload the mud losses ahead of the well being put on test, Block Energy continued.
Chief Executive Paul Haywood, said: "We are pleased with the progress being made at JKT-01Z. Having encountered hydrocarbons and experienced significant mud losses whilst drilling, the early signs are encouraging. If JKT-01Z proves to be successful, side-track operations funded by production revenue will be initiated back at WR-B01, adopting the same geological approach employed at JKT-01Z.
"Strong sales, stable production and the ability to take advantage of enhanced sales pricing during the quarter, combined with encouraging initial signs from JKT-01Z, all add to the board's confidence in the company's ability to improve performance as we look to the year ahead."
By Heather Rydings; heatherrydings@alliancenews.com
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