REG - Block Energy PLC - Project I Update

Block EnergyAnnouncement

03/04/2023 07:15

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RNS Number : 0439V  Block Energy PLC  03 April 2023

3(rd) April 2023

Block Energy plc

("Block" or the "Company")

Project I Update

Further to the announcement made on WR-B01Za on 28(th) February 2023, Block
Energy plc, the exploration and production company focused on Georgia, is
pleased to provide an update on Project I, including the results of the
extended well test on WR-B01Za.

Production Test

WR-B01Za has now been producing at a rate of 269 boepd (241 bopd oil &
4,800 m(3)/d gas) over a period of twelve days, following a successful
low-cost wellbore intervention by the Block drilling team. No formation water
has been produced to date. The well has continued to flow naturally through
choke settings ranging from 7.1 mm (18/64") to 11.1 mm (28/64") and has now
been handed over to the production team.

The results of WR-B01Za provide back-to-back drilling success, further
validating the Company's subsurface model and reservoir understanding and
confirming its ability to accurately place horizontal wells in areas of good
productivity. As planned, the WR-B01Za trajectory penetrated and followed a
seismic lineation running parallel to and 500m to the west of the lineation
penetrated by JKT-01Z.

Cumulative production from the Block side track programme now stands above
250,000 BOE.

Project I

The first of the Company's Project I development wells, JKT-01Z, commenced
production in January 2022 and continues to perform better than that predicted
by Block's independent reserves auditor. In 2022, ERCE completed an
independent reserve report on the Krtsanisi anticline development area and
assigned gross 3P reserves of 3.01 MMstb oil / 2.14 BSCF gas with an
associated NPV10 of USD 56.98 million.

The Company intends to drill the remaining side-tracks and new wells defined
in the Krtsanisi anticline field development plan. The Company's internal
Contingent Resource report ascribes 2C contingent resources of 19.5 MMstb to
Project I.

Project I is the development of the Middle Eocene oil reservoir in the West
Rustavi-Krtsanisi field. The reservoir is divided into eight development
areas, the first of which being drilled is the Krtsanisi anticline area.

Commenting, Paul Haywood, Block Energy CEO said:

"Our Block Energy operational and drilling team have worked extremely hard to
design and execute the wellbore clean-out operation. The results of the
operation are very encouraging for future development and the production added
by WR-B01Za is material to the Company. This is the second successful Project
I development well. I look forward, in due course, to updating shareholders on
further Project I activities, including the upcoming side-tracks and new
wells."

 

Stephen James BSc, MBA, PhD (Block's Subsurface Manager) has reviewed the
resource 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/
(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 / Ali AlQahtani   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. 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 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.

·    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.

·    MD: measured depth.

·    MMbbls: million barrels.

·    MMboe: million barrels of oil equivalent.

·    MMcf: million cubic feet.

·    TVD: True Vertical Depth.

 

 

 

 

 

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