LONDON (Alliance News) - Block Energy PLC on Wednesday started sidetrack drilling on the 16a well on Georgia's West Rustavi field, the company said.
This is part of a two-well sidetrack programme on the field, targeting gross production of 650 barrels of oil per day by the end of the first half of 2019.
Block's target reservoir is 2,100 metres deep with an oil column up to 600 feet thick. It will start production testing as soon as drilling is completed and the drill rig has moved.
In December, testing confirmed the well has an active hydrocarbon system with pressure. Over 200 barrels of oil came from the well during a 10-hour test period.
Chief Executive Paul Haywood said: "The first of an initial two-well sidetrack programme targeting an overall 650 barrels of oil per day (325 barrels of oil per day per well) at West Rustavi, 16a is a high impact well for Block and we are therefore delighted drilling operations have commenced at the site on schedule.
"This is testament to the excellent work and meticulous planning carried out by the operations team on the ground in Georgia, including the successful flowback test at the Well in December which confirmed the targeted Middle Eocene reservoir still contains reserves and remains pressurised," he continued.
"With gross contingent resources of 38 million barrels of oil, a total of six historic wells identified as suitable candidates for sidetracking, and a legacy gas discovery, the potential for West Rustavi to generate significant cash flow and value for Block is clear."
Shares were up 6.6% on Wednesday morning at a price of 3.57 pence each.
Block Energy P. (BLOE)