(Sharecast News) - Georgia-focussed oil and gas company Block Energy reported an average production of 630 barrels of oil equivalent per day (boepd) in its third quarter on Thursday, slightly below the second quarter's 664 boepd.
The AIM-traded firm said the period saw the introduction of the WR-34Z well as part of project one, attaining production of 150 boepd.
That solidified the internal field 3C contingent resources of 27.5 million standard barrels and punctuated the capacity and reliability of Block's operations in the field.
Amid more than 109,316 operational man-hours in the third quarter, the company said it managed its operations without encountering any lost time incidents.
At the same time, it contained gas flaring to 98,572 cubic metres due to power shutdowns and maintenance, in alignment with its strategy to minimise emissions.
The board said that the robustness of average production and a favourable Brent price helped bolster Block's financial position.
It said well WR-34Z's positive results fortified the assertions of the ERCE reserves report, affirming the previously ascribed 3.01 million standard barrels of oil and 2.14 billion standard cubic feet of gas, with a 10%-discounted net present value of $57m to a section of the West Rustavi and Krtsanisi field.
That would support the firm's internal contingent resource report, assigning 3C contingent resources of 27.5 million standard barrels to the broader field.
Looking ahead, Block Energy said it was placing immediate attention on spudding the KRT-45Z well - the fourth in project one - and propelling project three.
The latter had piqued interest following the completion of bid evaluations for a competent persons report (CPR) on its lower Eocene and upper cretaceous gas reservoirs.
Contract awarding had proceeded with RISC Advisory, positioning the company for knowledge share with prospective project three farm-in partners.
Despite the slight dip in average production, the third quarter registered gross production was 58,000 barrels of oil equivalent, including 44,300 barrels of oil and 13,600 equivalent barrels of gas.
Oil sales over the quarter totalled 24,900 barrels, translating to $1.74m, while gas sales reached 57.4 million cubic feet at $0.26m.
As of 30 September, the company retained 17,340 barrels of oil in storage, offering a stable baseline for fourth-quarter operations and sales.
"The third quarter of the year saw continued progress from the company," said chief executive officer Paul Haywood.
"Block's third consecutive well continues to add confidence to our project one drilling strategy whilst positioning the company to pursue the higher impact opportunities throughout our portfolio, such as those defined within project three and now being audited by RISC.
"Focus now shifts to the spud of our fourth well under this programme, KRT-45Z whilst we continue to advance our high impact strategy across project three."
At 1328 BST, shares in Block Energy were down 9.98% at 0.97p.
Reporting by Josh White for Sharecast.com.
Block Energy P. (BLOE)