Block Energy plc, the development and production company focused on Georgia, is pleased to announce drilling operations on well WR-B1a have been completed. The Company will now progress to test the well.
WR-B1 was initially drilled to a measured depth of 2,180m, encountering hydrocarbon shows higher in the Middle Eocene reservoir than expected. Shows continued to increase in frequency and magnitude, but wellbore stability challenges required this section to be re-drilled. This was successfully achieved, extending drilling of WR-B1a to 2,483m over a reservoir interval of 478m. After careful evaluation of the frequency and magnitude of fractured zones penetrated, the subsurface team decided to call total depth, rather than extend the horizontal section further.
After encountering multiple shows and indications of hydrocarbon-bearing fracture zones, the well was successfully completed. A 7″ pre-perforated liner with fracture-isolating swellable packers was set down to a measured depth of 2,161m and a 4½” slotted liner extends from 2,161m to 2,483m.
The reservoir was encountered within two metres of the prognosed depth, having utilised the latest 3D-seismic technology. Drilling operations were also optimised through the strategic partnership with Baker Hughes and the adoption of technologies, such as rotary steerable systems and logging-while-drilling .
Preparations for rigging down the ZJ40 drilling rig are now underway, to enable the installation of the Christmas tree over the wellhead. Once this operation has been completed, a production test will commence. A permanent downhole pressure gauge will be installed, with the aim of providing real-time data to optimise reservoir production.
The WR-B1a well is potentially transformative for Block, targeting an estimated 2.1 MMboe of recoverable oil and gas. In the event of a commercial well, production from the well will be tied into the Company’s Early Production Facility for processing.
Concurrently, preparations are already underway for Block’s second well of its 2021 drilling programme, with more details to follow shortly.
Block Energy plc’s Chief Executive Officer, Paul Haywood, said:
“We are delighted to announce the safe completion of drilling operations on well WR-B1a, whereby zero LTIs were recorded out of a total 280,000 man-hours worked this year, against the added challenges presented by Covid-19. The operational team in Georgia has made significant progress with drilling operations on well WR-B1a, allowing the Company to now progress to the testing phase. It is well known that the Kura basin is a complex and challenging drilling environment and to have successfully reached TD is a solid reflection of Block’s capacity to undertake such operations. If the well proves to be commercially viable, which we hope to establish soon, Block could readily realise the return on its investment in well WR-B1a, having established Early Production Facilities, which will enable rapid monetisation of both oil & gas. The Company continues with its activity on many fronts, including preparations now underway for the drilling of the second well in the campaign”.
Jonathan Bedford (Block’s Technical Manager) has reviewed the reserve, resource and production information contained in this announcement. Mr Bedford has an MSc in Petroleum Geoscience from the University of Aberdeen and is a petrophysicist.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For further information please visit http://www.blockenergy.co.uk/ or contact:
(Chief Executive Officer)
Block Energy plc
Tel: +44 (0)20 3468 9891
Notes to editors
Block Energy plc is an AIM-listed independent oil and gas company focused on production and development in Georgia, applying innovative technology to realise the full potential of previously discovered fields.
Block has a 100% working interest in Georgian onshore licence blocks IX and XIB. Licence block XIB is Georgia’s most productive block, with 2P oil and gas reserves of 64 MMboe, which is comprised 2P oil reserves of 36 MMbbls and 2P gas reserves of 28 MMboe (Source: CPR Bayphase Limited: 1 July 2015) and historic production of over 180 MMbbls of oil from the Middle Eocene, peaking in the mid-1980s at 67,000 bopd.
The Company has a 100% working interest in the highly prospective West Rustavi onshore oil and gas field with multiple wells that have tested oil and gas from a range of geological horizons. The field has so far produced 50 Mbbls of light sweet crude and has 0.9 MMbbls of gross 2P oil reserves in the Middle Eocene. It also has 38 MMbbls of gross unrisked 2C contingent resources of oil and 608 Bcf of gross unrisked 2C contingent resources of gas in the Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1 January 2018).
Block also holds 100% and 90% working interests respectively in the onshore oil producing Norio and Satskhenisi fields.
The Company offers a clear entry point for investors to gain exposure to Georgia’s growing economy and the strong regional demand for oil and gas.
1. bbls: barrels. A barrel is 35 imperial gallons.
2. boe: barrels of oil equivalent.
3. bopd: barrels of oil per day.
4. Mbbls: thousand barrels.
5. MMbbls: million barrels.
6. MMboe: million barrels of oil equivalent.
7. Bcf: billion cubic feet.