RNS Operatinal Update 27/01/20 - Reminder26 Jan 2021 10:33
Mon, 27th Jan 2020 07:00
RNS Number : 9317A
Block Energy PLC
27 January 2020
27 January 2020
Block Energy Plc
("Block" or the "Company")
Operations Update
Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to provide an update on operations at its West Rustavi field ("West Rustavi" or "the Field"):
Highlights
·; Multi-rate production testing is underway at well WR-38Z ("WR-38Z") following a clean-up period to stabilise the well and recover fluids lost during drilling. Peak production rates have exceeded 300 bopd and 1.5 MMCF/d of gas (equivalent to a total of more than 550 boepd).
·; With the WR-38Z test confirming West Rustavi's rich gas potential, Block is accelerating the monetisation of its gas reserves by installing a central gas processing facility for the Field and by applying for permits required to get the gas onstream during Q2 2020.
·; Drilling operations have begun at well WR-51Z ("WR-51Z"), the third of West Rustavi's wells to be horizontally sidetracked.
·; Operations at the West Rustavi appraisal well WR-16aZ ("WR-16aZ"), which was shut-in during December for the installation of improved surface test facilities, are scheduled to re-start in early February with a well intervention programme designed to add a further 100-200 boepd to the Field's production.
·; The Company is encouraged by the quality of data indicated by a preliminary review of the recently acquired 3D seismic survey of West Rustavi.
Initial results of the multi-rate production test at WR-38Z
The well has been flowing naturally since 30 November 2019, aside from a brief shut-in period between 27 December 2019 and 1 January 2020, when pressure recorders were installed in the well for the production test. The formal multi-rate test began on 3 January 2020, recording high well productivity and higher gas production rates than expected.
Wellhead flowing pressures have remained high, indicating the well's long-term flow potential. Although significant, the water cut has been stable since testing began. Analogous wells close to West Rustavi have produced for long periods: For example a vertical well located two kilometres to the north has produced for 20 years with a similar water cut. The Company expects WR-38Z, a horizontal well which has already produced more than 5500 barrels of oil, to be significantly more productive than a vertical well.
To reduce the amount of gas flared, the choke size has been reduced to a diameter of 9/32" for