Last checked at 24 Nov 2021 07:00
24 November 2021
Block Energy plc
("Block" or the "Company")
Gas Sales Commence From KRT-39 and JKT-01 Drilling Update
KRT-39 Gas Sales
Block Energy plc, the development and production company focused on Georgia, is pleased to announce that gas sales from well KRT-39, located in Block XIB, have commenced.
Since before Block Energy acquired Block XIB, the associated gas produced (currently 140,000 scf per day) from KRT-39 has been flared. Its monetisation will further reduce Block's environmental footprint in Georgia and is part of the Company's wider strategy to minimise carbon emissions.
The sale of gas from KRT-39 commenced following the installation of two gas separators and the construction of a 4.2km pipeline to the Company's early production facility ("EPF"). Since acquiring the licence block in November 2020, it has been one of the Company's goals to monetise gas associated with oil production from Block XIB.
In the case of West Rustavi in Block XIF, Block commenced gas sales in February 2021, following the installation of the EPF and the construction of a gas gathering flow line.
JKT-01 Drilling Update
Preparatory operations, utilising the ZJ-40 drilling rig, for the JKT-01 sidetrack, the next well in the fully funded drilling campaign, are making good progress. Spudding the well is expected during early December 2021 and further operational updates will be provided in due course.
Block Energy plc's Chief Executive Officer, Paul Haywood, said:
"Commencing gas sales from well KRT-39 provides a dual benefit to the Company and the wider community around Block's assets. It supports our ambition to create a sustainable energy company that minimises its environmental footprint while supporting the energy demands of Georgia. It also delivers a further stream of revenue that can be reinvested into supporting operations and creating future value for shareholders. Furthermore, the infrastructure now in place will enable the rapid monetisation of any associated gas produced from the JKT-01 sidetrack. I am pleased with the operational progress at the wellsite of JKT-01, and with the technical design of landing the horizontal completion high in the Middle Eocene, where multiple fracture corridors are expected to provide the best chance of high productivity."
**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.
8. scf: standard cubic feet.