REG - Block Energy PLC - WR-34Z Well Test Results

Block EnergyAnnouncement

26/09/2023 07:00

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RNS Number : 5949N  Block Energy PLC  26 September 2023

26 September 2023

 

Block Energy plc

("Block" or the "Company")

WR-34Z Well Test Results

Further to the announcement on 31(st) August 2023, Block Energy plc, the
exploration and production company focused on Georgia, is pleased to provide
an update on the well test of WR-34Z.

 

WR-34Z Test Results

 

WR-34Z has now been in continuous production for over 19 days on a range of
choke settings from 7.1mm to 12.7 mm, producing at an average rate of 223
boepd (153 bopd & 11,900 m(3)/d gas). The well has now been handed over to
the production team, on a 10.3mm choke size, with production at a five-day
average rate of 150 boepd with all produced hydrocarbons being monetised.

 

Total group production as of the 25(th) September was 684 boepd.

 

Project I

 

In 2022, ERCE completed an independent reserves report on a portion of the
West Rustavi/Krtsanisi field and assigned gross 3P reserves of 3.01 MMstb oil
& 2.14 BSCF gas with an associated NPV 10 of USD 57 MM.

 

The first of the Company's Project I development wells, JKT-01Z commenced
production in January 2022 and continues to perform better that the mid case
from the ERCE reserve report. WR-B01Za was brought onto stabilised production
in March 2023 and continues to perform above the high case from the ERCE
reserve report.

 

Well WR-34Z was drilled within the area covered by the ERCE reserves report
and its success validates both the conclusions of this evaluation and the
Company's internal contingent resource report ascribing 2C contingent
resources of 19.5 MMstb within the wider field.

 

Block Energy plc's Chief Executive Officer, Paul Haywood, said:

"Drilling and successful testing of WR-34Z marks the third consecutive Project
I development well, which was drilled safely, on time and within budget,
boosting group production and enhancing the Company's overall cashflow
position. Operational and financial performance for the Company in 2023 is
promising to be strong, providing the platform to pursue some of the
higher-impact opportunities throughout our portfolio. The team's focus will
now shift to drilling KRT-45Z, our fourth Project I well and I look forward to
providing further updates on this and wider project activity in due course."

 

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/
(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 7770 6424

 (Financial PR)

 

Notes to editors

Block Energy plc is an AIM-quoted 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. 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 XIB 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 XIF 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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