Block Energy P. Share News (BLOE)

(Sharecast News) - Georgia-focussed exploration and production company Block Energy announced the mobilisation of a ZJ40 drilling rig to the site of well 38Z at its flagship West Rustavi field on Thursday, in preparation for planned horizontal sidetrack operations.
The AIM-traded firm said an A50 service rig was moved to the site to workover the well earlier in the month.

It said the mobilisation of the ZJ40 rig triggered the 12-month term of the agreement the company reached in July with JSC Norio Oil Company and Georgia Oil and Gas, for the hire of drilling and workover equipment.

The sidetracking of well 38Z was the next phase in Block's £12m programme to "rapidly scale" oil and gas production across the field, in which the firm held a 100% working interest, the board explained.

West Rustavi has an estimated 0.9 million barrels of 2P oil reserves, 38 million barrels of gross unrisked 2C contingent resources of oil in the middle, upper and lower, eocene and 608 billion cubic feet of legacy gross unrisked 2C contingent resources of gas in the eocene and cretaceous.

"Well 38Z is analogous, adjacent and updip to well 16aZ, where Block resumed production last month," the company's board said in its statement.

"Both wells target the same middle eocene formation.

"The company will draw on the valuable experience gathered from the drilling of well 16aZ to optimise the completion design for well 38Z."

Block said it planned to horizontally sidetrack three other wells across the field in addition to wells 38Z and 16aZ, and acquire a 3D seismic survey to pinpoint further optimal locations for production.