Block Energy Norio field produces encouraging initial results
, the exploration and production company focused on Georgia, revealed that its Norio field is showing encouraging results, producing 45 barrels of sweet crude in a five hour period.
The company is told investors it remains fully funded to progress its workover programme to increase oil production to 250 barrels per day by the end of H1 2019 at the Norio field.
It is using a specialist enhanced perforation tool, to penetrate Norio’s oil bearing formations. The micro-drilling tool is being deployed in eastern Europe for the first time and based on its results on the Norio 44 well, it is offering “positive indications” for the Well's stable production rate.
The company said that while the Norio 39 well had to use conventional perforation because “wellbore conditions did not permit the application of the specialist tool”, it presents a good ‘test case’ to compare the effectiveness of the micro-drilling tool with conventional technology, as the wells are very similar, being in the same geological formation and within 1000 feet of each other.
Three more Norio wells are to be used with the specialist tool next month, with an oil sale planned from the field’s central production facility after a refurbishment.
Block Energy is also preparing to drill two horizontal sidetracks on its West Rustavi field, to target a gross production of 650 barrels of oil per day by the end of Q1 2019.
It is also testing a legacy gas discovery in the Lower Eocene at West Rustavi, similar to that of the neighbouring fields Schlumberger is targeting. The field flowed at rates up to 29,000m3/d when originally tested in 1988.
Chief Executive Officer Paul Haywood said: “With our existing production at Norio selling for Brent minus US$10, a combined rate of production at Norio and West Rustavi of 900 bopd would have the potential to generate circa US$13 million in annual revenues at current oil prices, a level that far outstrips our current £7 million market valuation, and one that would enable the Company to both grow organically, and to seek out further low cost, high potential production opportunities.”
Follow News & Updates from BLOE here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.