REG - Block Energy PLC - Operations Update

Block EnergyAnnouncement

26/07/2022 07:00

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RNS Number : 6818T  Block Energy PLC  26 July 2022

 

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
XI(B). 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/
(http://www.blockenergy.co.uk/)  or contact:

 Paul Haywood                   Block Energy plc                 Tel: +44 (0)20 3468 9891

 (Chief Executive Officer)
 Neil Baldwin                   Spark Advisory Partners Limited  Tel: +44 (0)20 3368 3554

 (Nominated Adviser)
 Peter Krens                    Tennyson Securities              Tel: +44 (0)20 7186 9030

 (Corporate Broker)
 Philip Dennis / Mark Antelme   Celicourt Communications         Tel: +44 (0)20 8434 2643

 (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, 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 XI(F), 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.

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