Block Energy plc reported a decrease in production and revenue with restricted output from WR-B1a at the company’s project in West Rustavi, Georgia.
OPERATIONS AND FINANCES
In its operations report for the three months ended 30 September 2021, Block recorded production of 34.6 Mboe (Q2: 42.6 Mboe).
Revenue for Q3 was $901,000 (Q2: $1,165,000), comprising oil revenue of $742,000 (Q2: $960,000) and gas revenue of $159,000 (Q2: $205,000).
As at 30 September 2021, the company had $2.7 million cash at bank (Q2 2021: $5.5m).
Production during Q3 includes the resumption of production from well WR-16aZ but this was offset by the decline from well WR-38Z.
WR-B1a
During Q3, well WR-B1a was drilled in partnership with Baker Hughes to a total depth of 2,483m
“The well is currently undergoing clean-up operations to recover drilling mud components from the fractures,” said Block in a statement.
“Oil and gas have been produced to surface.
“However, it is believed that well productivity is being restricted owing to the natural fractures being clogged with loss circulation material used to prevent the large drilling fluid losses experienced in our previous West Rustavi wells.
“A thorough clean-up programme has been designed to dissolve the loss circulation material, requiring chemicals with a 14-day lead time to be sourced from a supplier outside Georgia.”
Block will publish the results once the clean-up programme and production testing have been completed.
JKT-01
Block said it continued preparatory work on JKT-01, which is in licence block XIB and is planned to be next in the two-well programme.
The ZJ-40 drilling rig will at the same time undergo routine maintenance.
JKT-01, located 1.5km north-east of WR-B1a, was originally drilled in 2012 as a vertical well by a previous operator, based on 3D-seismic data acquired in 2010.
The well encountered oil, but the vertical borehole did not intersect productive fractures.
Block acquired new 3D-seismic data in 2019 and conducted an attribute analysis, which supports the identification of possible permeable oil-filled fracture networks.
The company plans to drill a horizontal sidetrack from JKT-01, which will target a polygon that potentially contains 2.4 MMboe of recoverable oil and gas reserves.
The cost of the drilling of JKT-01 is fully funded by the company’s cash resources.
NEXT STEPS
Block plans a production logging campaign for West Rustavi to assist in optimising future well placement, completion design and reservoir management.
The company also aims to improve near-term production performance from the mature fields to halt the production decline during Q3.
Work continues to monetise gas associated with oil production, which involves the upgrading of well KRT-39’s surface facilities in Block XIB.
This brings additional revenue for Block and benefits the environment by ceasing gas flaring.