Block Energy plc posted “above forecast” production as work continues at its four onshore projects in Georgia.
FARM-OUTS
Project I targets the West Rustavi/Krtsanisi field for which the company’s internal contingent resources estimate for the entire field is 19.5 MMbbl 2C.
Production “remained robust” with a July average of 534 boepd, while “select operational investments” will aim to maximise netbacks.
A now completed seven-month restructure resulted in cost efficiencies at the end of Q1 2024.
The company said it remained cash positive throughout 2024.
Block also undertook “significant” engineering work on drilling technologies to make material savings on single well capital expenditure requirements and to expand available donor wells for sidetracks.
The company remains ready to drill additional project I wells to ensure cashflow and pursue its four projects.
Project II focuses on the re-development of the Middle Eocene reservoir of the Patardzeuli and Samgori fields, holding internal estimates of gross 2C contingent resources of 235 MMbbl.
Block has completed a technical review of the existing well stock and workover proposals from an engineering and subsurface perspective, aiming to increase incremental oil production.
Studies are underway for enhanced oil recovery on the Patardzueli field and include, among others, water shut-off, infill drilling, jet drilling and polymer flood.
The company is also in talks with vendors and potential investors on providing capital and or services for the programmes.
The farm-out process continues to attract interest for projects III and IV with multiple parties entering the data rooms.
The first covers the undeveloped gas-bearing natural fracture system within the Lower Eocene and Upper Cretaceous reservoirs – each more than a kilometre thick – across blocks XIB and XIF.
A 2024 independent engineering report estimates the Lower Eocene and Upper Cretaceous reservoirs in the Patardzueli-Samgori field contain more than 1 tcf of 2C contingent resources.
The second focuses on exploration of the full potential of all the licences, including licence IX and Didi Lilo, where Block has identified “significant” prospectivity.
Chairman Phil Dimmock said that the company remained committed to driving growth and delivering value.