Block Energy West Rustavi well test flow rate triples forecasts
, the Georgian focused energy company told investors its well 16a test on the West Rustavi license significantly exceeded forecasted rates.
Well 16a delivered a test flow rate of an average 1,100 barrels per day versus the previously announced target production rate of 325 barrels per day.
The flow rate on a one eighth inch choke significantly exceeded its base case production rate, and ranked the AIM listed company’s well among best drilled in Georgia in the last 50 years.
Shares shot up 30% to 5.1p a share following the announcement.
Chief Executive Officer Paul Haywood said: “Current performance, complemented by the Company's increased working interest in the licence, looks set to deliver great value to our shareholders.”
Block Energy told investors that the well will be placed on production and stored until sale, and initial production rates will be based on the company analysis of the production and pressure build-up tests.
Mr. Haywood added: “Management will now digest this extaordinary result and crystalise a development strategy beyond that already outlined to the market on Well 38. This is truly an exciting time for Block Energy, and we look forward to updating the market shortly.”
The company has 71.5% working interest in West Rustavi, however has an agreement to acquire 100% which it secured in February
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