REG - Block Energy PLC - WR-B01Za Test Results

Block EnergyAnnouncement

28/02/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230228:nRSb2137Ra&default-theme=true

RNS Number : 2137R  Block Energy PLC  28 February 2023

28 February 2023

 

Block Energy plc

("Block" or the "Company")

WR-B01Za Test Results

Block Energy plc, the exploration and production company focused on Georgia,
announces initial results from the WR-B01Za well, part of the initial
development phase of the West Rustavi/Krtsanisi Field, the Company's Project
I.

The well was drilled into the Middle Eocene reservoir, targeting lineations
interpreted on the 3D seismic survey to represent productive sweet spots with
high density of oil-bearing natural fractures.

The well's planned trajectory consisted of a long horizontal reservoir section
intersecting the fault/ fracture system. Total Depth ("TD") was called at
2,372 m MD, instead of the intended 2,682 m MD, due to unstable wellbore
conditions across a suspected fault at approximately 2,275 m MD which caused
escalating tool failure and lost-in-hole risk. Significant drilling fluid
losses and gas and oil shows were observed while drilling beyond the problem
zone, indicating a potentially productive well, but currently constrained due
to the wellbore failure.

Intermittent testing has produced some dry oil with zero water cut and high
gas volumes, despite the wellbore issue. The well will now enter an extended
well test period during which oil and gas will be sold whilst data is acquired
to optimise the completion design, which may require further low-cost drilling
operations to remedy or by-pass the wellbore failure and improve overall
wellbore connectivity to the productive zones.

Commenting, Paul Haywood, Block Energy CEO:

"The drilling and geoscience teams have done an excellent job completing this
well, given the challenges experienced while drilling the horizontal section.
Drilling data indicates a good reservoir containing oil with significant gas.
The extended test will provide the data required to optimise the completion
design whilst monetising both oil and gas produced. Production results and
forward plans will be communicated once the extended test is complete and
production rates have stabilised.

"Meanwhile, the Company is reviewing the data gathered during drilling and
testing WR-B01Za to optimise the KRT-45_ST drilling programme, the second
Project I development well. The Company continues to work on Projects II, III,
and IV, and we look forward to updating shareholders as we progress."

Ken Seymour, CEng, PhD (Block's Chief Operating Officer) has reviewed the
reserve, resource and production information contained in this announcement.
Dr Seymour is an engineer with over 40 years' of experience in well
engineering and operations 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.

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDZZGZZLNRGFZM