Block Energy plc plans to deepen an existing oil well in Block XIB as the company begins the second of its three-project strategy in Georgia.
PROJECT II
Project II involves the re-development of the Patardzeuli Middle Eocene reservoir.
The company will drill well JSR-01DEEP by September using cash generated from operations.
Project II will run concurrently with Project I, which includes a programme of five wells ready for development finance.
JRS-01DEEP
Well JSR-01DEEP is the first of a series of wells that will deepen or side-track the existing 50 legacy wells in order to develop areas of undrained oil.
Block Energy will deepen the existing JSR-01 well, drilled by a previous operator in 2013, in the Patardzeuli oil field in Block XIB.
“The original JSR-01 well penetrated only the upper 55 metres of the Middle Eocene reservoir, which is over 600 metres thick in Patardzeuli and has produced over 100 MMbbls oil,” said Block Energy.
“JSR-01DEEP will target an undrained part of the Middle Eocene reservoir, with placement of the well-path guided by 3D-seismic data attributes that indicate a zone of fracture corridors.
“This strategy was employed successfully at JKT-01Z in the West Rustavi-Krtsanisi field.”
The company added that materials and equipment required for operations were in Georgia and that preparations had started.
GROWTH
“Commencing Project II with the drilling of well JSR-01DEEP, located within what has been the most prolific licence area in Georgia, represents the beginning of an exciting period for Block,” said chief executive Paul Haywood.
“The roll-out of the company’s strategy, as outlined through recent announcements, is a programme that we hope will deliver material production growth and further cash.”