Block Energy (BLOE) has commenced drilling at JKT-01Z, the second well in its current two-well drilling programme which is targeting around eight million barrels of oil and gas.
Drilling at JKT-01Z, which is targeting “a substantial pool of oil and gas” of around 8 million barrels ( MMbbls) of oil-in-place, officially started on Wednesday. The second well is located near the vertical well KRT-39, which has produced c.450 Mbbls of oil over the last 20 years.
Both wells are in Block XIB, which the Georgian-focused development and production company acquired from the oilfield services company Schlumberger in November 2020.
Block said the drilling of JKT-01Z has been optimised by the recalibration of its 3D-seismic data ‘with data gathered from recent wells, the use of horizontal drilling technology and geomechanics, and the ability to optimise the well trajectory in real time whilst drilling.’
It said the trajectory and horizontal nature of the well design ‘will maximise the chance of intersecting fracture attributes identified in the same reservoir interval in KRT-39, the producing interval near the fractured volcanic tuff at the top of the Middle Eocene.’
The Company explained that well JKT-01Z is a sidetrack from a vertical well originally drilled in 2011 by a previous operator. This means the well is therefore not expected to suffer the well integrity issues experienced by Block previously ‘when sidetracking from Soviet era wells.’
Block explained to investors that this approach ‘maximises the potential return of value to shareholders, by greatly reducing the drilling cost and time, while minimising execution risk.’
Commenting on this morning’s news, Block Energy’s Chief Executive Officer, Paul Haywood, said: "The drilling of JKT-01Z combines the lessons from previous drilling operations with attribute data derived from the high-quality 3D-seismic survey acquired in 2019. The close proximity to an existing commercial well reduces the risk and adds to our confidence."
“Owing to the recent installation of the gas infrastructure at neighbouring KRT-39, production from this well would be quickly monetised and make a material addition to the Company's near and longer-term future,” he added.
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