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Block Energy reports peak results for WR-38Z at West Rustavi

14:30, 27th January 2020
Francesca Morgan
Company News
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London-listed Block Energy (AIM:BLOE)  FOLLOW said that mutli-rate production testing underway at WR-38Z of the West Rustavi field has shown peak results exceeding 550 barrels of oil equivalent per day.

The Georgian-focused exploration firm said testing at WR-38Z had confirmed West Rustavi, of which Block has a 100% working interest in, to hold rich gas potential.

Block noted that it intends to monetise its gas reserves by installing a central gas processing facility, which will initially collect gas from wells WR-38Z, WR-16aZ and WR-51Z.

Permitting work is now underway, the statement detailed, with the aim of bringing gas production onstream by the second quarter of 2020 in accordance with a gas sales agreement with Bago LLC as announced on 30 October 2019.

The group explained that Bago is funding and installing pipeline infrastructure necessary to connect the EPF to Georgia's gas distribution network.

Shares in Block Energy were trading 3.85% lower at 5p on Monday afternoon.

BLOE price chart

“Our gas sales will help meet Georgia's strong demand for energy, to which we are already contributing through regular oil sales,” said Paul Haywood, Chief Executive of Block.

Meanwhile, drilling operations have begun at well WR-51Z, Block said, which is the third of West Rustavi's wells to be horizontally sidetracked.

The forecast production rate for the sidetracked well is 300 boepd, the company said, which, if achieved, would generate a further $3m of revenue during the first year of production, assuming a Brent price of $60.

In addition, the West Rustavi appraisal well, WR-16aZ, is scheduled to recommence operations in early February following a December shut-in so the group could install improved surface test facilities.

A well intervention programme has also been designed to add a further 100-200 boepd to the Field's production at WR-16aZ.

Haywood described Block as “hitting the ground running” as the company enters 2020 with solid relationships developed with both local and national Georgian partners.

“Furthermore, we welcome the opportunity the Black Sea exploration tender offers for the further development of Georgia's oil and gas industry,” Haywood added.

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