Member Info for Hepseal

During the second quarter of the year Block delivered record production with an average rate of 664 boepd.

As Sarah helpfully points out the current production rate has now increased to 684 boepd.

Oh, and also the price of oil has gone up since Q2.

Good morning folks, following on from previous post re flow figures, extract from RNS 12th May below:

"Existing Group production is now over 620 boepd (April average rate)"

So WR-BO1Za came on line at the end of March, the average flow rate during April was 620 boepd and for some reason there was a surge in production at the later part of Q2 to push the Q2 average up to 664 boepd.

That surge for some reason has dropped off but with the addition of WR34-ST we are now producing at 684 boepd.

Obviously subject to confirmation in the Operations Update but IMO the average for the last two quarters should almost certainly be in excess of 600 boepd compared with less than 400 boep for the three previous quarters.

Hence PH recent statement, "Operational and financial performance for the Company in 2023 is promising to be strong"

Cheers Thordon - GL

Rob - I have a theory about some of the drop off in production, I am probably wrong but here goes anyway:

During H1 Block undertook 11 workovers and wellbore interventions, including the installation of an Electrical Submersible Pump on well WR-38Z.

Looking at the previous Q1 & Q2 flow figures I would guess most of these wells were brought back into production during Q2 and they probably flowed at a greater rate in the initial days/weeks than they do now. That could explain some of the drop off in production as PH has stated that the other Project 1 wells are still performing well.

(If you look at GoogleMap you can see all the activity at the WR-38 site - this image has been there for several months)

Looking forward to Q3 Operations Update which could drop as early as tomorrow morning - Q2 Operations update was on the 5th July.

PH statement from RNS 26th Sept:

"Drilling and successful testing of WR-34Z marks the third consecutive Project I development well, which was drilled safely, on time and within budget, boosting group production and enhancing the Company's overall cashflow position. Operational and financial performance for the Company in 2023 is promising to be strong, providing the platform to pursue some of the higher-impact opportunities throughout our portfolio. The team's focus will now shift to drilling KRT-45Z, our fourth Project I well and I look forward to providing further updates on this and wider project activity in due course."

Rocklawn - I think the market was anticipating a total production figure of around 800 boepd after the WR34 results, had we achieved that I believe the share would have actually gone up rather than down.

That said, I think we have now got the bad news out of the way and the Q3 Operations Update due shortly will hopefully clarify matter,s and will further demonstrate solid progress over the last year as a whole.

Q3, 2022 - Average 404 boepd

Q4, 2022 - Average 374 boepd

Q1 2023 - Average 400 boepd

Q2 2023 - Average 664 boepd (Record Quarter)

Q3 2023 - Average ????

(we do know that on the 25th Sept the total production figure was 684 boepd)

Sarah - Your cut and paste does not seem to work very well, I said "RECORD QUARTER." not "quater" - Thicko

I agree with Chesh & Thordon, PH is not going anywhere and all things considered I believe he is the right man for the job.

I have to admit I was a little disappointed with both the WR34 results and the current flow figures from the existing wells, however we should remember the well was a SUCCESS and Block are producing at RECORD LEVELS of production.

Having considered the peaks and troughs over the last three months I am of the opinion that we will have another very good Quarterly Operations Update (Q3) during the next few days, possibly this week.

IMO Production Figures and Revenue for Q3 will probably be similar to last quarter but we should remember Q2 was a RECORD QUARTER.

Going forward, with the price of Oil being what it is I can see good revenue in Q4 as well.

GLA

Could be as earlier as this week, Q2 results were on the 5th July.

Samplemix - The increased cash position at 30th June may have something to do with the fact that they raised $2M during the half year and it was also prior to drilling WR34-ST

TLH1 - A very good question, answers on a postcard please.

JKT-01Z was producing at 182 bopd (Oil) after 1 month

WRBO1Z was producing at 247 bopd (Oil) after 15 days

WR34-ST has been producing at an average of 150 boepd (Oil & Gas) over the last 5 days

Cautious11 - I know where you are coming from with regard to ambiguity on past reporting but I must say that although today's RNS is not great I do not think on this occasion it is ambiguous as it has covered flow results from all angles.

Rocklawn - It is NOT $22.5m per year on current production figures for reasons that I have stated - As you have been on this board for such a long time I would have thought you would have known that.

Bitasoo4 - I think you will find the revenue for the 30 day period will be somewhere around $1M for the following reasons.

1) A proportion of the 684 barrels is Gas - Block do not get paid anywhere near $90 per barrel for the gas.

2) Of the remaining barrels that are Oil the State of Georgia take there proportion first, Block only get to sell the remainder.

Total revenue for Q2, Oil and Gas, was $2.834M - I am expecting around $3M for Q3 but it depends upon exactly when they make the oil sells.

Mephisto - I regret to say you are more or less correct.

Q2 total production average was 664 boepd

Current total production is 684 boepd

Current production from WR34 is 150 boepd

Therefore production from previous wells has dropped from 664 boepd to 534 boepd, a drop of 130 boepd

Q1 - A side track

Q2 - I think most of the regulars here including myself are thinking flow rates will be somewhere in the middle of the range 150 boepd min and 450 boepd max - of course there is always a chance it could be a lot more!!

Think it was a few days before then Astec because they dismantled the drilling rig on Monday 28th August according to the date on the twitter video.

Like the "Rock Up Pop Up" concept but they need to step up the numbers.

Shed - Yep, I missed that one - We probably know more or less what will be in the HY report and it should make good reading on its own but the interesting bit will be the "Post Period Events" section.

RB asks the question "Q3 is close to an end… what do we feel has been achieved?"

I am a little surprised that an Advisor to the company and a TR1 holder is asking this question on a chat board.

This is how Block Energy (BLOE) do things - Block have for the last three years published an Operations Update at the end of each Quarter regular as clockwork detailing current work program, Production Figures and Revenue for the Quarter so that Investors are fully informed of the current situation. I would suggest that this is the correct way of doing things.