Last checked at 16 Nov 2020 07:00
16th November 2020
Block Energy Plc
("Block" or the "Company")
Operational Update
Block Energy plc, the exploration and production company focused on Georgia, is pleased to provide a progress report on its Early Production Facility ("EPF") on the West Rustavi oil & gas field.
Construction of Block's gathering line between the EPF and the WR-38Z well has been completed on time and on budget. The pipeline has been successfully pressure tested at 6,600 kPa with no failures. The EPF is now ready to receive gas from wells WR-16aZ and WR-38Z, which will remain shut-in to conserve gas until the gas sales line has been constructed and gas sales can commence.
The Georgian independent gas company, Bago LLC, which has agreed to purchase the gas from the EPF, has received all required permits and is continuing with the construction of its gas sales line, to recover time lost consequent to the COVID-19 pandemic. Once the sales line is complete, oil production from West Rustavi will recommence and first sales of associated gas will be achieved. A further update will be provided once the sales line is complete.
Block Energy Chief Executive Officer, Paul Haywood, said:
"I am extremely pleased with the continued progress we have made with our EPF at West Rustavi, despite the operational challenges that COVID-19 has presented. Safely completing the assembly of the EPF and construction of the gathering line on time and budget is a testament to the relentless efforts applied by the team to deliver this important milestone. Focus is now on supporting Bago to ensure the safe and efficient installation of the sales pipeline, which will allow gas sales to commence.
We look forward to updating the market further as we approach Block's inaugural gas sales."
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.
For further information please visit http://www.blockenergy.co.uk/ or contact:
Paul Haywood (Chief Executive Officer) | Block Energy Plc | |
Neil Baldwin (Nominated Adviser) | Spark Advisory Partners Limited | Tel: +44 (0)20 3368 3554 |
Peter Krens (Corporate Broker) | Mirabaud Securities Limited | Tel: +44 (0)20 3167 7221 |
Billy Clegg / Owen Roberts / Violet Wilson (Financial PR) | Camarco | Tel: +44 (0)20 3757 4980 |
Notes to editors
Block Energy 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.
The Company has a 100% working interest in the 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. In March 2020, the Company entered into a conditional sale and purchase agreement to acquire a company that holds Georgian onshore Blocks IX and XIB.
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. Mbbls: thousand barrels.
3. MMbbls: million barrels.
4. BCF: billion cubic feet.