LONDON (Alliance News) - Block Energy PLC has found "significant" shows of hydrocarbons at one of its wells on Georgia's West Rustavi field, the company said Wednesday.
Block drilled to a depth of 2,659 metres of the 16a well after "successful" sidetracking, finding oil and gas in the Upper and Middle Eocene formations.
It will test the latter formation later in the week, taking around two weeks.
"Hydrocarbon readings derived from field interpretation of drill cuttings (taken in five metre intervals) and live oil shows on the shale shaker unit and frequent spikes in gas readings provide strong indications that the expected naturally fractured hydrocarbon reservoir Middle Eocene formation was entered, and that the entire horizontal section was drilled within it," said Block.
Block is hoping for a 325 barrel a day output from the well, generating free cash flow of USD3.6 million which would pay back the cost of the well in less than six months.
Chief Executive Paul Haywood commented: "This is a critical milestone as we seek to unlock West Rustavi's company-making potential and demonstrate our operational competence to our stakeholders and the broader market."
Shares were 0.5% higher on Wednesday at 4.02 pence each.
Block Energy P. (BLOE)