Last checked at 8 Feb 2024 07:00
8 February 2024
Block Energy plc
("Block" or the "Company")
Independent Engineering Report Confirms Prospects for Project III Farm-out Process
Block Energy plc, the development and production company focused on Georgia, is pleased to announce an Independent Engineering Report indicating over 1 TCF of 2C contingent gas resources in the Patardzueli and Samgori fields in licence XIB with a Net Present Value of more than USD 500 MM.
Highlights
? | Independent Engineering Report (IER) by a leading geoscience and reservoir engineering consultancy covering the Lower Eocene and Upper Cretaceous reservoirs in the Patardzueli-Samgori field. |
? | IER indicates over 1 TCF of 2C Contingent Resources with a NPV exceeding USD 500 MM. |
? | Block's subsurface work and proposed development plan validated. |
? | Key pathway document for Project III farm-out process. |
? | Prospect of increased contingent resources in proven gas resources in the same reservoir sequences across additional fields in licences XIB and XIF. |
Project III Background
The Company's Project III is focused on the appraisal and development of gas resources within the Lower Eocene and Upper Cretaceous reservoirs.
The reservoirs contain extensive gas-bearing natural fracture systems hosted by a stratigraphy over one and a half kilometres thick, spanning Block's XIB and XIF licences, across three fields, Patardzueli-Samgori, Teleti and Rustavi. The Company's farm-out campaign is supported by the major studies it has undertaken on all three fields, and historic well tests proving the presence of gas across each field.
Project III Independent Engineering Report (IER)
The IER, covering the Patardzueli and Samgori fields, was undertaken by Oilfield Production Consultants (OPC) Limited, a leading geoscience and reservoir engineering consultancy.
The IER was performed according to Petroleum Resource Management System guidelines. OPC undertook a comprehensive evaluation of Block's technical work, including geology, geophysics, petrophysics, reservoir engineering, development plan, well design, costings, commercialisation and economics.
The Report's volumetric estimates, outlined below, are in line with those of Block and confirm the Company's technical and economic case for the appraisal and development of the Patardzueli and Samgori fields. With this validation of Block's subsurface and development plan, the IER is a cornerstone document for the Project III farm-out process.
Patardzueli-Samgori | Recoverable Contingent Resources (BCF) | |||
Reservoir | 1C (Low) | 2C (Mid) | 3C (High) | Mean |
Lower Eocene | 782 | 901 | 1,023 | 902 |
Upper Cretaceous | 143 | 171 | 199 | 171 |
Total | 926 | 1,072 | 1,222 | 1,073 |
Patardzueli-Samgori | Economic Value (USD MM) | ||
Case | Low | Mid | High |
Total | 227 | 501 | 745 |
Rustavi and Teleti Fields
The IER was commissioned to review Block's evaluation of the Patardzueli-Samgori Lower Eocene and Upper Cretaceous reservoirs, the primary target for the initial Project III appraisal and development campaign, including the proposed early production facilities associated with the first phase of the development.
In addition, the Company has identified substantial proven gas resources in the same reservoir sequences in the Rustavi and Teleti fields, opening the prospect of material developments beyond Patardzueli-Samgori.
Block is currently reviewing the internal contingent resource estimates for these fields, employing the same methodologies as used by OPC in the Patardzueli-Samgori IER. Revised estimates will be announced in due course.
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Figure 1: Patardzueli-Samgori, Rustavi and Teleti fields (at Lower Eocene) and key pipeline infrastructure |
Commenting, Paul Haywood, Block Energy Chief Executive Officer said:
"We are delighted to receive an IER from OPC validating the significant multi-disciplinary work we have undertaken to define the full scope of Project III.
"With independent 2C Contingent resources of over 1TCF of gas, robust economics, proximity to Georgia's major industrial hub, strategically located by the South Caucasus Gas pipeline, connecting Turkey to European gas markets, this project has the potential to make a significant regional impact. The gas resources in Project III and across our licences have already been declared a strategic asset by the Georgian state.
"Our team has worked hard to deliver the technical product required for a successful farm-out process, including a full appraisal plan and early development concept.
"Beyond Patardzeuli-Samgori we have also identified significant volumes of gas within the Rustavi and Teleti fields. I look forward to updating the market on further progress across every element of our evolving Project III appraisal and development campaign in due course."
**ENDS**
Stephen James BSc, MBA, PhD (Block's Subsurface Manager) has reviewed the reserve, resource and production information contained in this announcement. Dr James is a geoscientist with over 40 years of experience in field development and reservoir management.
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 / Ali AlQahtani (Financial PR) | Celicourt Communications | Tel: +44 (0)20 7770 6424 |
Notes to editors
Block Energy plc is an AIM-listed independent oil and gas production and development company with a strategic focus on unlocking the energy potential of Georgia. With interests in seven Production Sharing Contracts in central Georgia, covering an area of 4,256 km2, including the XIB licence which has over 1TCF of 2C contingent gas resources in the Patardzueli and Samgori fields. (Source: IER, OPC 2024).
The Company has structured its operations around a four-project strategy. These projects, characterized by development stage, hydrocarbon type, and reservoir, are pursued concurrently to achieve multiple objectives. This includes increasing existing production, redeveloping fields, discovering new oil and gas deposits, and capitalizing on the substantial, yet untapped, gas resource across its licences. The goal is to deliver on multi TCF gas assets, strategically well located for the key EU market, supported by partner funding and cash from existing producing assets.
Located near the Georgian capital of Tbilisi, Block Energy is well-positioned to contribute significantly to the region's energy landscape. This proximity facilitates seamless operations and underscores our commitment to the economic and energy development of Georgia.
Glossary
· bbls: barrels. A barrel is 35 imperial gallons.
· Bcf: billion cubic feet.
· boe: barrels of oil equivalent.
· boepd: barrels of oil equivalent per day.
· bopd: barrels of oil per day.
· Mbbls: thousand barrels.
· Mboe: thousand barrels of oil equivalent.
· Mcf: thousand cubic feet.
· MD: measured depth.
· MMbbls: million barrels.
· MMboe: million barrels of oil equivalent.
· MMcf: million cubic feet.
· TVD: True Vertical Depth.