Good post DJM1
Even at its current RNS production rate including Oil already shipped to store the well will pay for its self in less than 12 months, production March to March even at the current 58 BoO per day plus oil already stored.
Gas sales to add to that when Bago connects.
The average price for 2019 Brent is $63.37 and predicted for 2020 as $59.93
@ Brent 2020 -$9 revenue from WR16aZ to end of November $50.93 = $727,178
@ Brent 2020 -$9 revenue from WR16aZ to end of December $50.93 = $818,750
Thats without any production from WR38aZ.
Incorrect Bill the first C Cycle plant proved they could produce Electricty much cheaper using less gas that their previous gas plants.
Coal is also a generating fuel in Georgia as is Exported Electricity having a GDP value, hence the second and now third plants.
I will say it again every 1000 CM3 of gas we produce will be swapped for imported SOCAR gas reducing Georgias balance of payments, the oil we produce wil grease the wheels of our Gas investment. It will also generate Summer revenue due to Georgia tanking up its Gas storage capacity to release to the market during pipeline maintainence or during high peak gas demands.
Isdeer under the original planning for a GAS field the next well would have been into the upper Gas find, to then prove the field which is what UJO funded for this year and on sell it to a Humber based major via pipeline access which is very expensive to monetise, but financially do able by a large Major.
The monster Oil find which is far more quickly monetised and manageable by much smaller production JVs, and has caused a massive revamp of that planning, rather than selling the field for $200M peanuts as Premier did with its Wytch farm stake, Oil allows the JV to monetise revenue very quickly while the major take a while fight over the asset.
Money only transfers to the rich if you are stampeded out of the share by spiked trader’s whinging because they have become LTH at least for the next few months the writing was on the wall when RBD went to the market to get its cash, other JV partners have to match those funds.
You might find that the wells oil find has been perfed in the Gas Oil contact zone to gain Gas pressure information from the bottom 20M section gas section to gain CPR data on the gas section doing so, pressurising the well stem above the oil contact zone and preventing a significant flow they were not able to deal with, using the current EWT gas test kit on site. In doing so test the PSI of the upper section and confirms Oil or Condensate, with the former the cause of the Black smoke and stink.
With the Oil EWT Rathlin could through bypass the Gas/Oil perfed section and re perf in the bottom Oil section which should allow it to flow under Gas pressure.
It still remains Rathlin is the operator, who is now fully funded by RBD to drill two production wells, at the B site which already has Production Planning Permission for that kind of operational work regardless of some bashers terming it as Appraisal, once it flows oil or gas it will continue to do so for many years .
UJO and Humber both have to step up to the plate with their share of the JV costs for the planned H1 2020 drill program.
The gas until replaced by internal production will come from SOCAR as it has done for ten of years.
By the time the third 260Mwatt C cycle station is ready, Georgia's Gas storage site should be operational, that has its own pipeline pointing directly at the power station sites, 1 operational, one under contruction and one to commece contrustion once the bonds are in place. Georgia also exports Electricity in addition to its oil.
The other point about the three C cycle stations is they use less Gas energy than previous stations according to recent published data gas consumption in Georgia has dropped a few % points since the first station came on line, they also act as a backstop to the winter renewables generated from Hydro. Every 1000 Cm3 we produce will find a ready buyer.
As far as an update with flow rates the RNS for September is what we have to go on:
RNS Number : 5316N
Block Energy PLC
25 September 2019
WR-16aZ's vigorous productivity is demonstrated by the consistent strength of its fluid production and reaction to varied choke sizes. The wellhead flowing pressure is high for a Georgian well of this depth.
The well has flowed gas at rates significantly higher than the Company anticipated, occasionally reaching 500 mcf/d (or 80 boepd), well above rates that would be expected if the gas was only associated with the oil.
Produced water is being trucked with the oil to the nearby storage facility at Sartichala, which is owned by the Georgian Oil and Gas Corporation (GOGC), the Georgian national oil company. The storage leasing agreement Block has with GOGC provides for the disposal of the produced water into a State approved injection well.
WR-16aZ production - - - Flow rates a work in progress:
The well continues to flow strongly, producing a combination of oil, water and gas. From 17 to 23 September production averaged 230 bbls/d of fluid at a choked-back rate comprising an average watercut of 78% (51 bopd) and a gas rate of 130 mcf/d (22 boepd).
WR-16aZ planned evaluation and intervention work
Block is implementing an evaluation and intervention programme designed to isolate and reduce the water the well is producing, and to increase net oil production. In keeping with the Company's philosophy of sourcing the best contemporary technologies for the task at hand, Block has selected downhole production logging equipment to identify the respective origins of the oil, water and gas the well is flowing.
Given that water packer work work in progress with WR38 possibly as a pilot for remediation with 16aZ such remediation work may use the A50 once its role has finished with WR03, given that Block is rigging up WR30 with the J40 rig at present.
Are You invested?
Then understand the real investment plan for West Newton, Majors like AIM want to see detailed flow results they will no long buy pigs in pokes, and that means drilling more than the one well UJO were funded for. The funding we had for WN B site is going else where, this new funding to match RBD funding is to move WN into production and with the 3D identify other prospects within the PSC to become drill ready. The more we invest, the better the drill data, and size of production, the higher the eventual price to a major.
The fact is the valulation we currently have for WN could double further via the production drilling which will take place during Q1.
So what are Humber going to do?
We are as little as 5 weeks away for a planning decision on Wressel, and then 2 months awat from first oil.
I also think we are very close to EWT on West Newton,
Rome wasnt built in a week and nor will this company.
DYOR Im holding for a chunk of change when WN is brought into production.
Wil: Given the three trades together 2 X 250K "buys"and one single 500L "sell" are they in fact inverted because of the mid pricing Oilicks on this site. where the buys wer two high priced sells followed by the low priced buy ???
Never mind Bill that 5P buy in price might come along next Thursday, while the test program runs on into its 4th week.
Trouble is just like london buses, three RNSs will turn up, and just like London Buses heading for Euston they will be Full or NT and you will be left out in the rain.
Horizontal Terminal Depth RNS on 31st October.
Block now in an extended, planned test cycle to an agreed Block project plan of over 2 weeks perhaps 4, given the reputational issues of issuing a flow report which is incorrect I personally don’t expect an update for some time, the earliest is late next week and more likely the end of the following week perhaps 28th Nov.
It’s in Blocks gift they will issue it in due course. However, shares change hand very quickly and it goes NT just as quick when it starts to rise.
ADT1 I disagree on your time scales, testing possibly started on the 30th with HTDepth RNSed on 31st. with Block advising over the previous 15 days that they were following a predetermined test plan with known objective milestones which investors want:
Gas and Oil flow rates, water cut rate, removal of drilling fluids appearing in the output, given that 16aZ consumed over 1000 B of fluids drilling its Horizonal section of 500 m.
Performance of various choke sizes.
Pressure tests and the impact being recorded in the other well in the same geological section.
The other key mile stone is the performance of the water packers and that will take time.
I rather Block spend the next 10 days getting their testing milestone ducks in a row, than jump into the fire, generate a nice spike, and then have the Share Peetake mob walk it back down again.
Correct Sea up to a point:
Quote: 38 and 16 are historical producers. I agree, but from the Lower Eocene with the majority of the production to date up to 1985 and not the Middle Eocene, this WR zone is untapped until now. In addition the ME is where the majority of Georgia’s significant Oil production has come from in recent years. The 2008 crash put paid to that development until two or so years ago.
All of our planned side track are drilling horizontal side track into the Middle Eocene. However two of them will appraise and core the Upper Cret section as Zen has done with C39, with two wells we have two bites at the cherry. The drill logs for WR03 should inform of a target to aim at, equally the 3D may well report by that time aiding the zonal targeting.
Particularly when it’s by design, executed by a bunch of crooks, sorry I should say professional sentiment manipulators, aided I agree by poor Block engineering, a lack of news, and adverse conditions in the Main market caused by the US correcting the US -China trade imbalance and a moribund EU economy teetering on the edge of recession.
Gas and oil is what I want for November and more in the New Year for WR30.
I wonder what Share Pee-takes shorting target on MATD will be by March; after all they would chew their own tails off to make a few quid.
I think you will find this operational communication plan is part and parcel of an agreed corporate project plan which the Board has signed up to. Block are not only drilling engineering correct holes in the deck, but carrying out a detailed engineering test plan to ensure their ducks are in a row, when they issue the flow results RNS.
They also now that social media plays a massive role in selling the corporate story, maintaining communications with investors and at the same time not giving space for the shorter weeds to grow, much better to squirt e’m with Roundup or a persistent nerve gas, but “Hay Ho” doing a Dirty Harry, instead of a cannon, - Make my day punk - squirt! Job-done.
Cautious11 it isn’t a question of knowing, which is very helpful I agree, but analysis - when you have to put other people project management ****ups back together, you gain the experience of working out timelines and engineering solutions and costs that work.
I have a suspicion that PH is a trained PM and has significant operations knowledge of the Georgian part of the Kuria basin, but even PMs are screwed when the "bloody in hole" stuff doesn’t work as it says on the tin.
The Golfcrest period of NEX RNS which are on the Block site prior to the name change are very interesting, Gold mining in Africa wasn’t doing the business, and Oil and Gas is still mining, and is deep coal from my historical family perspective and both use drills.
The board hired PH for his knowledge of the GOG sites and in particular Norio and Block VIII which GOG still want a partner for, they also want a partner for another block and side track but that’s another story for H1 2020.
With respect Bill and BB, and the other on the board, some of us are significantly Dyslexic and have to perfect our scribbles before posting, with my left hand far more dominant than my right when typing, which a Mobile or Pad doesn’t allow the same functionality of correcting text. However, my curse allows me to do other things far better.
Those that can spell standing on their heads I salute you, the rest of us have to work three times as hard and use the IT tools we have, just to keep up with you.
Hepseal as I said, it is in my opinion that Milton knew of the water ingress risk before others, and yes, I accept they needed the cash and sold out in stages, but someone nodded the wink on water and the share disposal to Share Pee-take to take advantage of, with members of that crew, have decided that Block is their current trading vehicle to take advantage of gap in news following the placing and the 6 months of drill program news, and talk each spike back down again to gain a rebuy position.
Milton remain a significant II above TRI level as you post, which is good, because they like me, are now on a free carry.
Expect more bovine excreta from the bashers to unsettle investors over WR38, at some stage in the near future Block will be confident that it has a solution for sub-basement fault water ingress, it will also be confident that its well stem cementation is working to specification I would hazard a guess they have wire logged it to death, to make sure.
They will also have accounted for drill fluids and understand any water cut values before issuing well out flow rates.
Given Block are rigging the J40 for the WR30 pair of side tracks, I would also expect the WR30 lateral into the Middle Eocene will show a very similar design into another sub Dome peak at the far end of our field, down dip just under the dividing seal between Upper and Middle Eocene.
56 posts all Block negative
Another adfn bashing team member being mentored by Mike31
Good presentation from MATD yesterday pity about the drilling window only starting in June, July and August.
Ours will continue though the Georgian winter as it has done though other winters their 2007/8 presentation photo for the Norio drilling demonstate.