TIDMBLOE
RNS Number : 3723K
Block Energy PLC
21 December 2022
21 December 2022
Block Energy plc
("Block" or the "Company")
Results of well JSR-01 DEEP testing programme
Block Energy plc, the exploration and production company focused
on Georgia, is pleased to announce that the JSR-01 DEEP testing
programme has proven oil from a previously unproduced zone in the
Patardzeuli field.
Highlights:
-- Results of JSR-01 DEEP testing programme have demonstrated
the Company's concept of unswept oil in the Patardzeuli field.
-- The well is currently on production at 45 bopd.
-- The encouraging results mean the Company will continue to
pursue Project II, the Patardzeuli full-field redevelopment.
Well JSR-01 DEEP is the Company's first Project II appraisal
well located in the southwest of the Patardzeuli field. The well
was drilled 470m deeper than the donor JSR-01 well, close to the
original oil-water contact. Drilled at an inclined angle, it
allowed the testing of different zones to help evaluate the
remaining oil potential, which will inform future drilling and
redevelopment plans. The field was acquired by the Company in 2020,
and had produced 98 million barrels of oil between 1975 and
1985.
JSR-01 DEEP Testing Results
The testing programme was designed to evaluate fluid levels and
prove commercially productive oil zones.
Over a period of two months commencing on the 21st October, the
Company tested three overlapping reservoir sections under rod pump
and electric submersible pump. The final test which has been on
pump since the 9(th) of December, is producing at a rate of 45 bopd
and will now be handed over to production.
The results of the testing programme have demonstrated that
there is unswept commercial oil in the Middle Eocene of the
Patardzeuli field. The Company is now in a position to advance
Project II, from both a subsurface and operational perspective.
Future Plans for Project II
The results of JSR-01 DEEP are being incorporated into the
subsurface model prior to an update of the Patardzeuli contingent
resources. This will support full-field redevelopment plans through
the deepening of existing vertical wells and the design and
execution of horizontal wells.
Unswept oil in the field will be initially targeted by low-cost
drilling techniques using the Company's recently upgraded A-80
service rig for an initial well-deepening programme across the
field (with average costs per deepening operation anticipated to be
in the USD 100k region). An opportunity set of 15 existing vertical
wells is being ranked to define the optimal deepening
candidates.
Following the deepening of these wells, the Company will then
focus on horizontal drilling, designed to sweep larger undrained
areas and deliver superior productivity versus vertical wells, as
demonstrated in the West Rustavi/Krtsanisi and Ninotsminda
fields.
Commenting, Paul Haywood, Chief Executive Officer of Block
Energy plc, said:
"We are pleased with the results of the appraisal programme on
JSR-01 DEEP. I would like to thank the operational and subsurface
teams, who employed drilling techniques and reservoir
characterisation technologies not previously used in Georgia to
advance this project. They have delivered a comprehensive and
successful testing programme that has allowed us to gain further
confidence in the commerciality of Project II full-field
redevelopment potential."
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.
**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 Block Energy plc Tel: +44 (0)20
(Chief Executive 3468 9891
Officer)
Neil Baldwin Spark Advisory Partners Tel: +44 (0)20
(Nominated Adviser) Limited 3368 3554
Peter Krens Tennyson Securities Tel: +44 (0)20
(Corporate Broker) 7186 9030
P hilip Dennis C elicourt Communications Tel: +44 (0)20
/ M ark Antelme 8 434 2 643
(Financial PR)
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 XI(B) . Licence block XI(B) is Georgia's most
productive block. During the mid-1980s, production peaked at 67,000
bopd and cumulative production reached 100 MMbbls and 80 MMbbls of
oil from the Patardzeuli and Samgori fields, respectively. The
remaining 2P reserves across block XI(B) are 64 MMboe, comprising
2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe.
(Source: CPR Bayphase Limited: 1 July 2015). Additionally,
following an internal technical study designed to evaluate and
quantify the undrained oil potential of the Middle Eocene within
the Patardzeuli field, the Company has estimated gross unrisked 2C
contingent resources of 200 MMbbls of oil.
The Company has a 100% working interest in licence block XI(F)
containing the West Rustavi onshore oil and gas field. Multiple
wells 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 1.07 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, ERCE 2022).
In 2022, a Competent Person's Report provided by ERCE, ascribed
3P reserves of 3.01 million barrels, with an NPV project value of
USD 57 million, to just a portion of the West Rustavi/Krtsanisi
Middle Eocene reservoir.
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.
-- 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.
-- MMbbls: million barrels.
-- MMboe: million barrels of oil equivalent.
-- MMcf: million cubic feet.
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END
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