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LONDON (Alliance News) - Exploration and production firm Block Energy PLC said on Tuesday the Georgian government has accepted the terms of its West Rustavi production sharing agreement.
Block Energy has a 25% stake in West Rustavi, which it said has proved and gross, contingent resources of 608 billion cubic feet of gas and 37.9 million barrels of oil.
The production sharing agreement starts on Saturday, and will permit Block Energy to start its planned operations at West Rustavi.
It hopes to start drilling a first side-track well in the last quarter of this year before bringing the well into production in the first quarter of 2019.
Initial production is aiming at 300 barrels of oil a day, and there are four other wells Block has identified where it can carry out similar work.
Managing Director Paul Haywood said: "We are delighted to have received the production sharing contract for West Rustavi which will allow us to hit the ground running with our high-impact work programme.
"With multiple discoveries already made within the licence which lie on trend with the same play currently being drilled by Schlumberger on neighbouring licence, West Rustavi represents significant development potential and value uplift for the company."
Block shares were 2.7% higher on Tuesday at a price of 3.39 pence each.
