No problemo Chris.
It’s a nice sunset though that Chris has in his image!
Looks like #BLOE has had success at 16a targeting 325bbl/day, once testing complete ( 2 weeks) move on to 38 which is primed and ready to go! Good news indeed. Already showing a small profit here but definitely no selling now !
RNS Number : 3676T
Block Energy PLC
20 March 2019
Block Energy Plc (‘the Company’ or ‘Block’): Reaches Total Depth at West Rustavi Well 16a with significant hydrocarbon shows
· Total Drilled Depth of 2,659 metres reached at well 16a following successful horizontal sidetracking operations
· Significant oil and gas shows in the Upper and Middle Eocene formations with testing in the Middle Eocene to begin later this week
· Seeking to increase the Company’s gross production by 325 bopd and to add USD 3.6m of free cash flow to annual revenue
· Follow-on West Rustavi candidate well 38, in close proximity to 16a, is primed for sidetrack operations subject to 16a results
Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to report that Total Drilled Depth (‘TDD’) has been reached at well 16a (‘16a’ or ‘the well’) at its West Rustavi field (‘West Rustavi’) after the successful completion of horizontal sidetracking operations.
A TDD of 2,659 metres was reached after the well was re-entered and cleaned, a whipstock positioned at 1,932 metres below the ground, a build section drilled 205 metres into the top of the targeted Middle Eocene, and a further 522 metres (some 100 metres more than the original plan) drilled horizontally into the formation’s reservoir.
Hydrocarbon readings derived from field interpretation of drill cuttings (taken in five metre intervals) and live oil shows on the shale shaker unit and frequent spikes in gas readings provide strong indications that the expected naturally fractured hydrocarbon reservoir Middle Eocene formation was entered, and that the entire horizontal section was drilled within it.
The Company is aiming for a gross initial flow rate of 325 bopd at the well, which would generate a free cash flow of approximately USD 3.6m and payback well costs in less than six months (assuming a price of USD 60/bbl Brent). Well 16a produced some 35 Mbbls when first on production during the Soviet era. According to Gustavson Associates (Source: CPR dated 1 January 2018) West Rustavi’s Middle Eocene reservoir holds 21 MMbbls of (‘2C’) contingent resources.
Significant oil and gas shows were also seen during the drilling of the Upper Eocene build section. The Company has logged this section of the well, and inititial interpretation indicates oil saturated sands, based on Spectrum Gamma Ray logs and mud logs. Gustavson Associates (Source: CPR) estimate this formation holds 12 MMbbls of gross contingent (‘2C’) resources, and a report by Georgia Oil and Gas (‘GOG’) notes that the Upper Eocene formation in the neighbouring Ninotsminda and Samgori fields, operated by the Kura Basin Operating Company (‘KBOC’) and Schlumberger respectively, has produced approximately 1.5 MMbbls.
Block will start testing the Middle Eocene section of the well later this week by nitrogen-assisted gaslift which will draw down the bottom hole pressure to clean up the natural fractures in the horizontal open hole section. Testing will take around two weeks. The pressure in a second West Rustavi well, number 38, has been bled off and is now ready for re-entering and sidetracking subject to results at well 16a. Last month Block secured an agreement to increase its working interest (‘WI’) in West Rustavi from 25% to 100%, giving the Company full strategic control over the development of the field (RNS: 26 February 2019: https://bit.ly/2H1Eqt5). In addition to an estimated 38 MMbbls of gross contingent resources (‘2C’) of oil, the field holds legacy gas discoveries which support a gross (‘2C’) gross contingent resource of 608 BCF (Source: CPR).
Block is carrying out its West Rustavi operations in parallel with an ongoing multi-well workover programme at its Norio field, where the Company has a 100% WI, and where earlier this month (RNS: 7 March 2019: https://bit.ly/2Hs45KX) a significant increase in production rate to 60 bopd, a four-fold increase, moved the Company towards its breakeven point of 100 bopd.
Chief Executive Officer Paul Haywood said: 'We are delighted to have completed our horizontal sidetracking operations at well 16a, reaching a TDD of nearly 2,700 metres. This is a critical milestone as we seek to unlock West Rustavi’s company-making potential and demonstrate our operational competence to our stakeholders and the broader market.
'Achieving our forecast of a 325 bopd production rate at 16a would move the Company well above its corporate production breakeven rate, generating total free cash flow (including both Norio and West Rustavi) of USD 4.5m per annum at USD 60/bbl Brent. In addition to our operations at 16a we have bled off the pressure at a neighbouring well, number 38, which we will swiftly prepare for sidetracking if 16a is successful.
'We also look forward to appraising West Rustavi’s legacy gas discovery. According to the documentation the Company received on acquiring its (‘WI’) in the licence, the first well the Company plans to appraise flowed at rates up to 29,000 m3 or 1.0 MMSCF per day when originally tested in 1988. We are further encouraged by Schlumberger’s ongoing gas drilling and testing operations in the neighbouring XIb permit.
'Our move to a 100% WI in West Rustavi gives us complete freedom to manage the permit’s tremendous natural gas potential, which if successfully developed would offer netbacks of approximately USD 2.5 per Mcf. We have already signed an offtake agreement (RNS: 5 October 2019: https://bit.ly/2Y4Pj2n) with an established Georgian gas trader able to support our ambitions for the field.
‘We look forward to updating the market on our test results at 16a and our broader development programme.’
if only we had one of these 6 or 7 years ago !
Nice flare at 38! That’s next…https://twitter.com/blockenergyplc/status/1108299923710230528?s=21
After this morning’s news and the tweeted flare at 38 BLOE finds it sp level. One wonders why they have to do to get the sp moving north!
+72% now! That’s pretty far North, all on the strength of test 3x forecast
2 weeks ago I thought, shall I get some but didn’t have the funds. Drat and now I’m stuck with this.
Block had a micro m/cap cap to begin with and has a very lean business model. The price rise is well deserved, it will be interesting to see the sustained flow rates and see what if any the decline is.
There’s still plenty of upside for FRR but there’s plenty of fiery hoops and risk to jump through till then.
My wish list…
- Settlement with Hope
- Durham Loan completion
- Re-list to AIM
- T well drilling plan and flow rates made available from T39
- BP link up - could be massive and worth billions to FRR. Think Shah Deniz 2.0
Best of luck and good on Block, my original plan was to shift a chunk of FRR gains into Block upon the rise to 1p. Still the fat lady is yet to sing!!!
Might not be too late for BLOE. Much more news to come over the course of the next few months as they progress their various operations. Still potentially a multi bagger. I sold some of my holding this morning…far too early. But intend to buy them back if there’s any future weakness ( which will happen at some point, I’m sure)
I had 20k in BLOE around the 4p mark. When the FRR **** storm happened I liquidated everything.
I have been here before with FRR when the SP was 0.06 and we rose to 0.80 so I still have some faith in another comeback.
I hope it dips soon before it’s really too late :o(.
Now! 6.5 to buy, quick before the next leg up occurs
Will leave it and see if it drops more due to profit takers. If it doesn’t then so be it.
So how did Block Energy get such good results from old wells?
Let’s hope that FRR is using technology to get the required results.
That’s a cracking self-marketing piece by bloe
Can only be good for FRR that we see Georgia o&g getting promoted like this
5.9p now mate
Yellow Jersey has piped up on LSE this pm which is encouraging in itself :
"You may be missing…The trick those that question the Block post …any good news from Georgia re Oil and Gas will raise the awareness and positive investor sentiment towards Georgia and ultimately help Frontera in the future.
Apologise if we have no new news fro Frontera."
“Fully understand and appreciate all your frustrations - as soon as we know will pass on”
BLOC has been in Georgia very few months operating and had very good luck with 1000
Barrel of oil
How did they do this? Are they telling porky pie?
If this data is true then
What FRR accomplished since 1996 -0000000-
Have Steve and Zaza ribbed the AIM systems/market
To fill their pockets or what what have they done with all that money?
Let us assume Steve and Zaza are are whiter than white
Then my big question is what have they done with all the money over the years
May be Cairns resignation related to this?