Last checked at 16 Dec 2021 07:00
16 December 2021
Block Energy plc
("Block" or the "Company")
Drilling Commenced at JKT-01Z
Block Energy plc, the development and production company focused on Georgia, is pleased to announce that drilling commenced yesterday at JKT-01Z, the second well in Block's current two-well drilling programme.
JKT-01Z is targeting c.8 MMbbls of oil-in-place. It is located near the vertical well KRT-39, which has produced c.450 Mbbls of oil over the last 20 years. Both wells are in Block XIB, which the Company acquired from Schlumberger in November 2020.
The drilling of JKT-01Z has been optimised by the recalibration of Block's 3D-seismic data with data gathered from recent wells, the use of horizontal drilling technology and geomechanics, and the ability to optimise the well trajectory in real time whilst drilling.
The trajectory and horizontal nature of the well design will maximise the chance of intersecting fracture attributes identified in the same reservoir interval in KRT-39, the producing interval near the fractured volcanic tuff at the top of the Middle Eocene. For further technical detail on the drilling of JKT-01Z, please see the video presentation at the following link:
https://www.voxmarkets.co.uk/articles/block-energy-follow-on-technical-drilling-update-8749313
Well JKT-01Z is a sidetrack from a vertical well originally drilled in 2011 by a previous operator. It is therefore not expected to suffer the well integrity issues experienced by Block previously when sidetracking from Soviet era wells. This approach maximises the potential return of value to shareholders, by greatly reducing the drilling cost and time, while minimising execution risk.
For the latest update from the wellsite, please see the video presentation at the following link:
https://www.voxmarkets.co.uk/articles/block-energy-jkt-01z-wellsite-dfa4fd9
(No new material, financial or other information is provided in these presentations)
Block Energy plc's Chief Executive Officer, Paul Haywood, said:
"The drilling of JKT-01Z combines the lessons from previous drilling operations with attribute data derived from the high-quality 3D-seismic survey acquired in 2019. The close proximity to an existing commercial well reduces the risk and adds to our confidence. JKT-01Z is targeting a substantial pool of oil and gas of around eight million barrels in-place. Owing to the recent installation of the gas infrastructure at neighbouring KRT-39, production from this well would be quickly monetised and make a material addition to the Company's near and longer-term future."
Jonathan Bedford (Block's Technical Manager) has reviewed the reserve, resource and production information contained in this announcement. Mr Bedford has an MSc in Petroleum Geoscience from the University of Aberdeen and is a petrophysicist.
**ENDS**
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For further information please visit http://www.blockenergy.co.uk/ or contact:
Paul Haywood (Chief Executive Officer) | Block Energy plc | Tel: +44 (0)20 3468 9891 |
Neil Baldwin (Nominated Adviser) | Spark Advisory Partners Limited | Tel: +44 (0)20 3368 3554 |
Peter Krens (Corporate Broker) | Tennyson Securities | Tel: +44 (0)20 7186 9030 |
Philip Dennis / Mark Antelme (Financial PR) | Celicourt Communications | Tel: +44 (0)20 8434 2643 |
Notes to editors
Block Energy plc is an AIM-listed independent oil and gas company focused on production and development in Georgia, applying innovative technology to realise the full potential of previously discovered fields.
Block has a 100% working interest in Georgian onshore licence blocks IX and XIB. Licence block XIB is Georgia's most productive block, with 2P oil and gas reserves of 64 MMboe, which is comprised 2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe (Source: CPR Bayphase Limited: 1 July 2015) and historic production of over 180 MMbbls of oil from the Middle Eocene, peaking in the mid-1980s at 67,000 bopd.
The Company has a 100% working interest in the highly prospective West Rustavi onshore oil and gas field with multiple wells that have tested oil and gas from a range of geological horizons. The field has so far produced 50 Mbbls of light sweet crude and has 0.9 MMbbls of gross 2P oil reserves in the Middle Eocene. It also has 38 MMbbls of gross unrisked 2C contingent resources of oil and 608 Bcf of gross unrisked 2C contingent resources of gas in the Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1 January 2018).
Block also holds 100% and 90% working interests respectively in the onshore oil producing Norio and Satskhenisi fields.
The Company offers a clear entry point for investors to gain exposure to Georgia's growing economy and the strong regional demand for oil and gas.
Glossary
1. bbls: barrels. A barrel is 35 imperial gallons.
2. Bcf: billion cubic feet.
3. boe: barrels of oil equivalent.
4. bopd: barrels of oil per day.
5. Mbbls: thousand barrels.
6. MMbbls: million barrels.
7. MMboe: million barrels of oil equivalent.