TIDMBLOE
RNS Number : 8515P
Block Energy PLC
12 October 2023
12 October 2023
Block Energy plc
("Block" or the "Company")
Q3 Operational Update
Block Energy plc, the development and production company focused
on Georgia, is pleased to announce its operational update for the
three months ended 30 September 2023.
Highlights
-- Average production of 630 boepd during the quarter (Q2: 664 boepd)
-- Third successful Project 1 well, with WR-34Z placed on production at 150 boepd
-- Results from well WR-34Z validates internal field 3C contingent resources of 27.5 MMstb
-- Focus now on the spud of the fourth Project I well, KRT-45Z and advancing Project III
Health, Safety & Emissions
Over 109,316 operational man-hours were worked by staff and
contractors in Q3, with no Lost Time Incidents.
The Company continues to minimise emissions, in-line with its
comm itments, flaring only 98,572 m(3) or approximately 1.1m(3) /d
of gas over the period as a result of power shutdowns and
maintenance.
Operations
Average production for Q3 was 630 boepd which, combined with a
healthy realised Brent price, means Block continues to build its
cash position, which can be redeployed to advance its higher impact
opportunities, such as the significant multi TCF contingent gas
under Project III, whilst continuing to execute Project I.
The results of well WR-34Z further validate the conclusions of
the ERCE reserves report, which attributed 3.01 MMstb oil and 2.14
BSCF gas, with an NPV10 of $57m, to a portion of the West
Rustavi/Krtsanisi field. It also supports the Company's internal
contingent resource report, which ascribes 3C contingent resources
of 27.5MMstb to the wider field.
Well WR-34Z was drilled without incident, on time and within
budget, by the Company's drilling team and is the third successful
Project I well, further enhancing the Company's sub-surface
model.
Corporate
During the quarter, the Company's financial position continued
to improve on the back of strong sales and a higher, relative to
last period, oil price. This ongoing improvement in the Company's
cash position will drive additional work across its various
projects, with an immediate focus on Project III.
Post period, the Company completed the evaluation of bids for a
Competent Persons Report on its Lower Eocene and Upper Cretaceous
gas reservoirs (Project III) and has now awarded the contract to
RISC Advisory. The CPR will be shared with potential Project III
farm-in partners, in due course.
Oil and Gas Production
During Q3, gross production was 58.0 Mboe (Q2: 60.4 Mboe),
comprising 44.3 Mbbls of oil (Q2: 48.5 Mbbls) and 13.6 Mboe of gas
(Q2: 11.9 Mboe). The average gross production rate for Q3 was 630
boepd (Q2: 664 boepd).
Oil Sales
In Q3 2023, the Company sold 24.9 Mbbls of oil (Q2: 38.0 Mbbls)
for US$1,740,000 (Q2: US$ 2,451,000).
As of 30 September 2023, the Company had c. 17.34 Mbbls of oil
in storage.
Gas Sales
In Q3 2023, the Company sold 57.4 MMcf of gas (Q2: 50.3 MMcf)
for US$ 256,000 (Q2: US$ 266,000).
Block Energy plc's Chief Executive Officer, Paul Haywood,
said:
"The third quarter of the year saw continued progress from the
Company. Block's third consecutive well continues to add confidence
to our Project I drilling strategy, whilst positioning the Company
to pursue the higher impact opportunities throughout our portfolio,
such as those defined within Project III and now being audited by
RISC. Focus now shifts to the spud of our fourth well under this
programme, KRT-45Z whilst we continue to advance our high impact
strategy across Project III. I look forward to providing further
updates on this activity soon."
Stephen James BSc, MBA, PhD (Block's Subsurface Manager) has
reviewed the reserve, resource and production information contained
in this announcement. Dr James is a geoscientist with over 40 years
of experience in field development and reservoir management.
**ENDS**
THIS ANNOUNCEMENT CONTAINS INFORMATION PREVIOUSLY DEEMED BY THE
COMPANY TO BE 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.
WITH THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY
INFORMATION SERVICE, SUCH INFORMATION IS CONSIDERED TO BE IN THE
PUBLIC DOMAIN.
For further information please visit
http://www.blockenergy.co.uk/ or contact:
Paul Haywood Block Energy plc Tel: +44 (0)20
(Chief Executive 3468 9891
Officer)
Neil Baldwin Spark Advisory Partners Tel: +44 (0)20
(Nominated Adviser) Limited 3368 3554
Peter Krens Tennyson Securities Tel: +44 (0)20
(Corporate Broker) 7186 9030
P hilip Dennis C elicourt Communications Tel: +44 (0)20
/ M ark Antelme 7770 6424
/ Ali AlQahtani
(Financial PR)
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. During the mid-1980s, production peaked at 67,000 bopd and
cumulative production reached 100 MMbbls and 80 MMbbls of oil from
the Patardzeuli and Samgori fields, respectively. The remaining 2P
reserves across block XIB are 64 MMboe, comprising 2P oil reserves
of 36 MMbbls and 2P gas reserves of 28 MMboe. (Source: CPR Bayphase
Limited: 1 July 2015). Additionally, following an internal
technical study designed to evaluate and quantify the undrained oil
potential of the Middle Eocene within the Patardzeuli field, the
Company has estimated gross unrisked 2C contingent resources of 200
MMbbls of oil.
The Company has a 100% working interest in licence block XIF
containing the West Rustavi onshore oil and gas field. Multiple
wells have tested oil and gas from a range of geological horizons.
The field has so far produced over 75 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.
Glossary
-- bbls: barrels. A barrel is 35 imperial gallons.
-- Bcf: billion cubic feet.
-- boe: barrels of oil equivalent.
-- boepd: barrels of oil equivalent per day.
-- bopd: barrels of oil per day.
-- Mbbls: thousand barrels.
-- Mboe: thousand barrels of oil equivalent.
-- Mcf: thousand cubic feet.
-- MD: measured depth.
-- MMbbls: million barrels.
-- MMboe: million barrels of oil equivalent.
-- MMcf: million cubic feet.
-- TVD: True Vertical Depth.
Project I: focused on the West Rustavi/Krtsanisi development and
supported by an independent Competent Person's Report from ERCE.
The Rustavi/Krtsanisi development sits across licence areas XIF
& XI . An internal report assigns 27.5 MMbbl 3C Contingent
Resources.
Project II : evaluation of large, undrained areas of the deeper
zones of the Middle Eocene reservoir within the Patardzeuli field,
within licence XI . Designed to evaluate and test 200 MMbbl 2C
Contingent Resources.
Project III: aimed at the appraisal and monetization of
substantial contingent resources of gas within the XI & XIF
licenses, within the Lower Eocene, Paleocene and Upper Cretaceous
geological formations. Internal estimates attribute 984 BCF 2C
Contingent Resources.
Project IV: exploration of the extensive gas potential within
the Company's wider portfolio, including licence area XIF and
exploration license IX, in partnership with Georgia Oil & Gas
limited.
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END
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