- Block Energy has oil and gas assets in Georgia
- A sidetrack at West Rustavi 16a was among the best wells yet drilled in Georgia
- The well flowed oil at a rate of 1,100 barrels per day against a targeted rate of 325 bopd
- Preparations underway for second sidetrack at West Rustavi
What it owns
Block now owns 100% following an agreement in February.
The field contains an estimated 38 MMbbls (million barrels) of gross contingent resources ('2C') of oil which, consequent to results at 16a, the Company hopes to mature to 2P reserves.
In addition, it holds legacy gas discoveries supporting a gross contingent ('2C') resource of 608 BCF (Source: CPR).
Following the current build-up phase, the 16a sidetrack will be placed on production using the field's existing test facilities and the oil trucked to a nearby oil storage facility.
The 16a horizontal sidetrack at West Rustavi was the first of two at the prospect targeting a combined gross production of 650 bopd.
In addition to the sidetrack, the original, legacy 16a well flowed at more than 200 barrels per day in a test at the end of 2018, with a further 300 barrels from tests in the following days.
In August, Block said preparations are underway for well 38Z, the next sidetrack at West Rustavi.
Schlumberger is drilling across the licence adjacent West Rustavi targeting a potentially huge discovery.
"With ExxonMobil recently entering the country and ongoing operations across Schlumberger's 100% owned position next to our own licences, Georgia's potential as a hydrocarbon region is being recognised by the industry.
Block is undertaking a programme of workovers and sidetracks at Norio, also in Georgia, to boost production to 250 barrels per day.
A potential 28mln barrels where exploration is in the process of getting underway.
What the boss says: Paul Haywood
Well 16aZ was restricted by storage capacity but having now acquired additional facilities it is back on track again.
We have to be delicate with the reservoirs in Georgia, says Haywood,
“It’s to nobody's benefit to run 16aZ too hard until we have absolute clarity on the optimal level of production.”
Well 38z is the next well to be drilled with the spud date to be announced shortly.
The well is a mirror of how 16aZ was drilled and is up-dip so what was learned from the first well can be applied here, he adds.
Beyond Well 38Z, Well 30 is scheduled for later in the year with two more wells planned in 2020.
Block raised £12mln earlier in the year and is fully funded for all this work said Haywood.
Stable production from West Rustavi legacy and sidetrack wells
More horizontal sidetracks scheduled for West Rustavi
Schlumberger completes drilling and publishes results for Permit XIB, next to West Rustavi
Exploration at Satskhenisi to confirm new prospective resources
Company moves cashflow positive as production ramps up
Production rises eventually to between 8-10,000 barrels per day.
Schlumberger well can XIB can prove up major oil play.