Block Energy (BLOE) , the exploration and production company focused on Georgia, revealed that its Norio field is showing encouraging results, producing 45 barrels of sweet crude in a five hour period.
The company is told investors it remains fully funded to progress its workover programme to increase oil production to 250 barrels per day by the end of H1 2019 at the Norio field.
It is using a specialist enhanced perforation tool, to penetrate Norio’s oil bearing formations. The micro-drilling tool is being deployed in eastern Europe for the first time and based on its results on the Norio 44 well, it is offering “positive indications” for the Well's stable production rate.
The company said that while the Norio 39 well had to use conventional perforation because “wellbore conditions did not permit the application of the specialist tool”, it presents a good ‘test case’ to compare the effectiveness of the micro-drilling tool with conventional technology, as the wells are very similar, being in the same geological formation and within 1000 feet of each other.
Three more Norio wells are to be used with the specialist tool next month, with an oil sale planned from the field’s central production facility after a refurbishment.
Block Energy is also preparing to drill two horizontal sidetracks on its West Rustavi field, to target a gross production of 650 barrels of oil per day by the end of Q1 2019.
It is also testing a legacy gas discovery in the Lower Eocene at West Rustavi, similar to that of the neighbouring fields Schlumberger is targeting. The field flowed at rates up to 29,000m3/d when originally tested in 1988.
Chief Executive Officer Paul Haywood said: “With our existing production at Norio selling for Brent minus US$10, a combined rate of production at Norio and West Rustavi of 900 bopd would have the potential to generate circa US$13 million in annual revenues at current oil prices, a level that far outstrips our current £7 million market valuation, and one that would enable the Company to both grow organically, and to seek out further low cost, high potential production opportunities.”
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