Last checked at 26 Jul 2022 07:00
26 July 2022
Block Energy plc
("Block" or the "Company")
Project II Commences
JSR-01DEEP Drilling Update
Block Energy plc, the exploration and production company focused on Georgia, is pleased to announce the commencement of Project II of its three-project strategy, the re-development of the Patardzeuli Middle Eocene reservoir, with the drilling of well JSR-01DEEP by September. The well will be self-funded using the cash generated from operations.
Well JSR-01DEEP involves the deepening of the existing well JSR-01, which was drilled by a previous operator in 2013, in the Patardzeuli oil field in Block XIB. The original JSR-01 well penetrated only the upper 55 metres of the Middle Eocene reservoir, which is over 600 metres thick in Patardzeuli and has produced over 100 MMbbls oil. JSR-01DEEP will target an undrained part of the Middle Eocene reservoir, with placement of the well-path guided by 3D-seismic data attributes that indicate a zone of fracture corridors. This strategy was employed successfully at JKT-01Z in the West Rustavi-Krtsanisi field. Well JSR-01DEEP is the first of a series of wells that will deepen or side-track the existing 50 legacy wells in order to develop areas of undrained oil.
Materials and equipment required for the drilling of JSR-01DEEP are in Georgia and preparatory operations have commenced.
Block Energy plc's Chief Executive Officer, Paul Haywood, said:
"Commencing Project II with the drilling of well JSR-01DEEP, located within what has been the most prolific licence area in Georgia, represents the beginning of an exciting period for Block. The roll-out of the Company's strategy, as outlined through recent announcements, is a programme that we hope will deliver material production growth and further cash. Project II is being funded using the cash generated from current operations and will run concurrently with Project I, which includes a programme of five wells ready for development finance."
Stephen James BSc, MBA, PhD (Block Energy's Subsurface Manager) has reviewed the reserve, resource and production information contained in this announcement. Dr James is a geoscientist with more than 40 years' experience in field development and reservoir management.
**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 reserves of 64 MMboe, comprising 2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe (Source: CPR Bayphase Limited: 1 July 2015) and historical production of over 180 MMbbls of oil from the Middle Eocene, peaking in the mid-1980s at 67,000 bopd.
The Company also has a 100% working interest in licence block XIF, which contains 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 over 75 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
· bbls: barrels. A barrel is 35 imperial gallons.
· Bcf: billion cubic feet.
· boe: barrels of oil equivalent.
· bopd: barrels of oil per day.
· Mbbls: thousand barrels.
· MMbbls: million barrels.
· MMboe: million barrels of oil equivalent.