Block Energy (BLOE) announced the start of a fully-funded workover programme at its Norio oil field to scale up production rapidly by the end of 2018.
It expects to complete the workover of eight wells by the end of Q1 2019, with the aim of rapidly scaling Norio's production from 10 to 150 barrels of oil per day.
Two workover campaigns on all eight wells will be carried out through Q4 2018 and Q1 2019 at the field, using an A50 rig and a specialist perforation tool imported from North America.
A perforation technology will be applied to each well to bypass any damage caused by historic heavy mud drilling - the technique replaces conventional shaped charge perforation with a micro drilling tool able to cut horizontal drain holes at multiple levels.
New or refurbished pumps will then be installed to bring the wells to production, and the process is to be repeated early next year on the remaining four wells.
Shares in Block Energy are up over 2.5% at 2.975p each on the day of the announcement
Block Energy holds a 100% working interest in the field, which holds gross proven oil reserves of 1.63 million barrels.
Chief Executive Officer Paul Haywood said: “Our Georgian operations are already cashflow positive, producing 15 bopd. Increasing our production ten-fold would, at current oil prices, create a highly cash generative platform for Block.”
He added “We look forward to maintaining a high impact news flow as our work programme progresses over the coming weeks and months.”
Block Energy (BLOE) is an exploration and production company focused on the Republic of Georgia with three licences in the heart of the prolific Kura basin.
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