Interesting...1 Apr 2019 17:50
So the well was completed in the middle Eocene formation... And achieved these spectacular results.... They have not looked at the upper formation yet (based on my read) and there are oil shows there as well!?
SO at 325 bopd its a 6 month payback with oil @ 60 USD
So @ 1,100 bopd and oil @70 USD, could we be looking at 6 weeks?
The FCF of this well could be phenomenal... And as others have commented, the gas has not been tested yet either... It looks to me like this field, with modern drilling techniques could be an outstanding asset, and worth just over 15m quid ? I think not...
However, below is the previous RNS (20th)
· Follow-on West Rustavi candidate well 38, in close proximity to 16a, is primed for sidetrack operations subject to 16a results
Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to report that Total Drilled Depth ('TDD') has been reached at well 16a ('16a' or 'the well') at its West Rustavi field ('West Rustavi') after the successful completion of horizontal sidetracking operations.
A TDD of 2,659 metres was reached after the well was re-entered and cleaned, a whipstock positioned at 1,932 metres below the ground, a build section drilled 205 metres into the top of the targeted Middle Eocene, and a further 522 metres (some 100 metres more than the original plan) drilled horizontally into the formation's reservoir.
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.
The Company is aiming for a gross initial flow rate of 325 bopd at the well, which would generate a free cash flow of approximately USD 3.6m and payback well costs in less than six months (assuming a price of USD 60/bbl Brent). Well 16a produced some 35 Mbbls when first on production during the Soviet era. According to Gustavson Associates (Source: CPR dated 1 January 2018) West Rustavi's Middle Eocene reservoir holds 21 MMbbls of ('2C') contingent resources.
Significant oil and gas shows were also seen during the drilling of the Upper Eocene build section. The Company has logged this section of the well, and inititial interpretation indicates oil saturated sands, based on Spectrum Gamma Ray logs and mud logs. Gustavson Associates (Source: CPR) estimate this formation holds 12 MMbbls of gross contingent ('2C') resources, and a report by Georgia Oil and Gas ('GOG') notes that the Upper Eocene formation in the neighbouring Ninotsminda and Samgori fields, operated by the Kura Basin Operating Company ('KBOC') and Schlumberger respectively, has produced approximately 1.5 MMbbls.
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