Block Energy plc said it had made good progress testing well JKT-01Z with initial rates of 344 boepd at the company’s operations in Georgia.
OPERATIONS
Well JKT-01Z reached total depth at 2,565 metres measured depth as planned in early January 2022 .
Production comprised 241 bopd and 17,500 m3 of gas per day.
The company recorded no lost time injuries and expects to exceed time and cost forecast by 20% and 10% respectively.
Block said that the success of JKT-01Z significantly de-risked and enhanced optimisation of future drilling.
The company is also assessing 12 further sidetracks, analogous to the JKT-01Z, including re-completion of the WR-B1 well.
FINANCES
Block achieved more than 30% higher gas price from 1 January 2022 with nearly an additional $500,000 in cash revenue per month.
It has also renegotiated the gas sales agreements for West Rustavi and Block XIB with effect from 1 January 2022.
VALUE
Chief executive Paul Haywood added that the success of well JKT-01Z had set a new standard on time and cost for such a sidetrack in the company’s Georgian operations.
“The success of this well represents a milestone for the company, with Block becoming cashflow positive, opening the opportunity to create and deliver additional value to shareholders.
“Our strategy remains to drive value through organic growth, converting contingent resources to proven reserves and production, which, given our asset base and today’s commodity prices, makes a compelling business case.”