Block Energy plc reported a fall in production and revenue during the third quarter from its operations in Georgia.
FINANCES
Revenue was $1,833,000 (Q2: $2,228,000) while the cash balance was $1.1m (30 June 2022: $1.4m).
Block Energy said the decrease in cash reflected the cost of drilling well JSR-01, ordering of long-lead items associated with two further side tracks, and workover operations.
During Q3 2022, the company sold 17.9 Mbbls of oil (Q2: 21.2 Mbbls) for $1,614,000 (Q2: $1,992,000), with a weighted average price of approximately $92 per barrel (Q2: $94 per barrel), a 2.1% decrease in the realised price in Q3 compared with Q2.
As at 30 September 2022, Block had over 13,000 bbls of unsold oil in inventory.
Block Energy sold 36.1 MMcf of gas (Q2: 58.4 MMcf) for $192,000 (Q2: $236,000), with a weighted average price of $5.31/Mcf (Q2: $4.04/Mcf).
The increase in gas price occurred as a result of negotiations with the buyer and an improvement in the reference price on which the contract is based, added the company.
PRODUCTION
During Q3, the company produced 37.1 Mboe (Q2: 47.2 Mboe), comprising 28.1 Mbbls of oil (Q2: 32.8 Mbbls) and 9.0 Mboe of gas (Q2: 14.4 Mboe).
The average gross production rate for Q3 was 404 boepd (Q2: 519 boepd).
Block said that production volatility from well WR-38Z and greater than average pump maintenance and power supply outages had affected average Q3 production.
The production volatility at well WR-38Z was now under control following the implementation of a new production scheme, added the company.
ESGs
Block added that there had been no flaring of gas during Q3 and that a specialist contractor was “actively exploring the geothermal potential” across the company’s licence areas.
The company continues with community engagement and training projects in and around the licence areas.
DRILLING
“Q3 saw the company deliver robust production, good cashflows and end the period with cash and oil inventory that will support the ongoing and self-funding development of its three-project strategy,” added chief executive Paul Haywood.
“Block is better placed than ever to progress and realise the value opportunity that exists across its portfolio, whilst testing JSR-01 DEEP and preparing for drilling the next well in our multi-well drilling programme.”