Block Energy plc reported field gross 2P reserves of 1.07 MMbbls in a competent persons report (CPR) on part of the West Rustavi and Krtsanisi oil field in Georgia.
PROJECT I
Chief executive Paul Haywood said that the CPR had independently verified the company’s work and plans for the initial phase of Project I.
The CPR, dated 31 March 2022, covers the Krtsanisi Anticline which straddles the company’s two licence blocks of XIF and XIB.
Block Energy will use the CPR to seek development financing for the next five wells of Project I – the development of the Middle Eocene oil reservoir in the West Rustavi/Krtsanisi field.
CPR
The scope of the CPR focused on the Krtsanisi Anticline and on reserves only, rather than contingent or prospective resources, to support negotiations with finance providers, said Block Energy in a statement.
The reserves are associated with only the first phase of development of the West Rustavi / Krtsanisi field (Project I) to begin to exploit the 19.5 MMbbls of contingent resources identified by the company.
FINANCING
Mr Haywood added that the wells were expected to deliver material returns for shareholders, particularly at current oil and gas prices.
“The report also provides the audited information necessary to support discussions on non-dilutive financing, to deliver the initial phase of Project I.
“Project I will be implemented concurrently with Project II, which will be funded separately using net cash generated from the company’s existing operations.
“Block considers this approach to managing Projects I and II to be the most efficient use of company resources to deliver production and returns to shareholders, in a way that is timely and balanced.”