It has entered into a non-binding memorandum of understanding with JSC Norio Oil Company (NOC) for the programme which will span the group’s three licence areas – Norio, Satskhenisi andWest Rustavi.
A workover rig will carry out a short three well programme at Satskhenisi before a longer eighth well programme at nearby Norio, where all wells are expected to be in production by the first quarter of 2019.
Elsewhere, at West Rustavi, it is planned that two wells will be side-tracked and retested. Block noted that the two wells will trigger an increase in the company’s working interest to 50%, from 25%.
Also, NOC will be hired for two high impact horizontal side-track wells, with drilling slated for the fourth quarter through the first quarter of 2019. The new drilling will see Block’s position increase again, to 75% from what would then be 50%.
Paul Haywood, Block Energy director, described it as “the start of exciting times” and added that investors can now look forward to “high-impact news flow”.
"The company is fully funded to complete the first of a three-phase work programme focused on scaling up production to a gross 900 barrels of oil per day within 24 months and on testing legacy gas discoveries at West Rustavi, which have been assigned 600 bcf of gross, unrisked contingent resources,” Haywood said.
He added: “The MOU secures two suitable rigs for the Company for a period of 12 months, giving us the flexibility and security to execute and complete our first phase of work before immediately moving into phase two with the same rig and crew.
“Furthermore, the terms of the agreement reduce the risks related to rig availability and cost overruns associated with hiring on a daily rate basis. We look forward to providing further details of the final contracts along with updates as operations get underway."