Block Energy P. Share News (BLOE)

(Sharecast News) - Georgia-focussed exploration and production company Block Energy reported an increase in production rate at its 100%-held Norio field on Thursday, where it was implementing a multi-well workover programme.The AIM-traded firm said the oil production rate at Norio 44 had increased "significantly" over the past five days, rising daily to reach 21 barrels of oil per day on the most recent day for which figures were available, being 6 March.It said its initial forecast for the well was 15 bopd.The well was re-entered and logged in October last year, and three intervals penetrated with a specialist micro-drilling tool selected by Block to meet the specific challenges presented by the oil bearing formations within its assets.When the first of the three intervals was penetrated, 45 barrels of sweet crude oil were recovered during a five hour period, indicating both the micro-drilling tool's effectiveness and the well's potential.The tool was also applied to Norio 27 where, following "extensive" work to clean and correct the borehole, 20 horizontal holes of approximately six feet were successfully drilled in a single run.Block Energy said that well had tested at 26 bopd, a rate exceeding its initial forecast of 17 bopd.Norio 39, where the firm was targeting a production rate of approximately 10 bopd, had also been perforated, with a further update set to be released after the well was put on production.The work at wells 44 and 27 moved the combined current production rate at Norio and Satskhenisi towards 60 bopd - a four-fold increase, taking Block to 60% of its breakeven target of 100 bopd, assuming a crude oil price of $60 pert barrel of Brent.Block Energy's board said it now looked forward to commencing workover operations at Norio 31, which was currently producing around 10 bopd.The well, which initially tested at 800 bopd when first drilled in 1950, had since been a consistent producer, and had produced more than 400 Mbbls during its lifetime.Block's ongoing operations in the field continued to yield valuable insights into how best to unlock Norio's potential, particularly in regard to the identification of new workover candidates.Norio had gross 2P oil reserves of 1.631 MMbbls, the company claimed.Block was pursuing the Norio workover programme at the same time as with operations at its West Rustavi field, where a horizontal sidetrack was being drilled in well 16a, targeting a base case production rate of 325 bopd.Last week, the firm secured an agreement to increase its working interest in the asset from 25% to 100%, giving it full strategic control over the development of the field.In addition to an estimated 38 MMbbls of gross contingent resources of oil, West Rustavi held legacy gas discoveries which supported a contingent resource of 608 billion cubic feet of gas."Our encouraging progress at Norio testifies to the skill, experience and dedication of our operations team as they work towards unlocking the field's potential." said chief executive officer Paul Haywood."We took time to find the right people and source the right technology to meet the technical challenges inherent in re-entering wells first drilled in the 1940s and 50s."We've worked hard to prepare the wellbores of our workover candidates to ensure access to the most promising horizons, following a methodical process that is now bearing fruit."Haywood said that in parallel with the Norio recompletions, Block was continuing to progress its sidetracking operations at West Rustavi well 16a, and expected to start drilling the 600m horizontal section within the next few days."Achieving the well's base case initial production forecast of 325 bopd would be sufficient to move the Company well above its corporate production breakeven rate."We look forward to further updates as we continue to realise the value of our assets."