21 October 2019
Block Energy Plc
("Block" or the "Company")
Operations Update: Successful Cementing of Casing at Well WR-38Z and New Technical Appointments
Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce the successful installation and cementing of casing through the build section of well WR-38Z ("the Well" or "WR-38Z") at its flagship West Rustavi field ("West Rustavi" or "the Field"), a critical phase in the sidetracking operations currently in progress at the Well. The Company is also further strengthening its technical team.
Casing at WR-38Z
WR-38Z is being drilled horizontally into the Field's primary oil-bearing Middle Eocene reservoir. The seven inch casing - or "liner" - was run into the bottom of the Well and cemented in place above the target formation. The design of the casing, which prevents fluid incursion from the Upper Eocene layers above the Middle Eocene, has been informed by valuable data and experience gained through operations at the appraisal well WR-16aZ ("WR-16aZ"), the first well the Company drilled at West Rustavi. Other cost-effective and proven isolation techniques being deployed include the use of swellable packers providing secondary barriers to water entry. Block looks forward to announcing the completion of drilling operations at the Well in around two weeks.
WR-38Z is the second in a fully-funded, multi-well programme Block is pursuing to realise West Rustavi's potential. The Company plans to sidetrack three other wells, test one of the Field's gas discoveries, and drill a new gas well. Block is currently acquiring a 3D seismic survey to provide a comprehensive understanding of West Rustavi's subsurface, allowing the Company to identify optimal locations for future drilling.
New Technical Appointments
Block is also pleased to announce new appointments further strengthening the Company's technical and operations team.
Two highly experienced geoscientists, Steve Smith and Jim Lee, bring more than 70 years' collective technical and managerial expertise gained in the course of work across the world for small, intermediate and major oil and gas companies. Georgian oil and gas industry veteran Mamuka Kharabadze will manage Block's operations subsidiary, Block Operating Company LLC ("BOC"). And Kevin VanBuskirk, contributes more than 40 years' international onshore and offshore well operations experience. Brief profiles are provided below:
Mamuka Kharabadze - General Director BOC
Mamuka has 20 years' experience of the Georgian oil and gas industry. Before managing BOC he was General Director of the Norio Operating Company, Block's Georgian partners,. Mamuka has also held logistics management positions for Canargo and the Georgian British Oil Company, and played senior roles in the acquisition of more than 600 km for 2D seismic surveys and the drilling of more than 25 wells.
Steve Smith - Subsurface Lead
Steve has more than 30 years' technical and managerial experience encompassing both small independents and the majors. He is a versatile geoscientist with expertise in both geology and geophysics. Steve has worked as an exploration manager for Shell, a technical advisor to the CEO of Gulfsands Petroleum, and a new ventures manager for JX Nippon. He has a BSc in Geology from the University of London and is a Fellow of the Geological Society of London.
Jim Lee - Senior Geologist
Jim has more than 35 years' experience of reservoir evaluation, risk analysis and project management, working in Canada, Russia, Australia, Yemen, Mongolia and South America. He focuses on making sound economic decisions through the integration of geology, geophysics and engineering disciplines. Jim has worked with companies ranging from successful junior start-ups and large intermediates. He holds a BSc in Geology from the University of Alberta, Canada, and is a professional geologist registered in Alberta.
Kevin VanBuskirk - Well Operations Specialist
Kevin has more than 40 years' international onshore and offshore operations experience, working in Georgia, Ukraine, Canada, Alaska and the Arctic. He has held senior field roles overseeing completions and drilling operations with companies including Apache, Nexen, Talisman, Statoil, Shell, Union Oil and Dome Petroleum. Kevin has also provided management and consulting services for minerals exploration and environmental and geotech operations.
Paul Haywood, Director of Block Energy, said:
"The successful cementing of WR-38Z's seven inch casing is a significant step in the sidetracking of the Well. Our drilling of well WR-16aZ provided a wealth of data about the Field's subsurface that has allowed us to optimise the completion design of WR-38Z, knowledge we will be able to apply to all the West Rustavi wells we subsequently drill. We look forward to updating you on further progress at WR-38Z, WR-16aZ, and our work across the Field."
"We are also delighted to welcome Jim, Steve, Mamuka and Kevin to the Block team. They bring skill, versatility and deep industry experience that further strengthens our operations capability. Block Energy comprises a range of international talents dedicated to ensuring the success of our multi-well programme."
Roger McMechan, Technical Director, has reviewed the operational, reserve, resource and production information contained in this announcement. Mr McMechan has a BSc in Engineering from the University of Waterloo, Canada and is a Professional Engineer registered in Alberta.
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.
For further information please visit http://www.blockenergy.co.uk/ or contact:
(Chief Executive Officer)
Block Energy Plc
Tel: +44 (0)20 3980 6250
Spark Advisory Partners Limited
Tel: +44 (0)20 3368 3554
Mirabaud Securities Limited
Tel: +44 (0)20 3167 7221
Billy Clegg / Owen Roberts / Violet Wilson
Tel: +44 (0)20 3757 4980
Notes to editors
Block Energy is an AIM-listed independent oil and gas company focused on production and development in the Republic of Georgia, applying innovative technology to realise the full potential of previously discovered fields. The company is pursuing a fully-funded multi-well programme through 2019/20 designed to convert contingent resources to reserves, and reserves to revenue.
The Company has a 100% working interest in the highly prospective West Rustavi onshore oil and gas field with multiple wells that have tested oil and gas from a range of geological horizons. The Field has so far produced 50 Mbbls of light sweet crude, and has 0.9 MMbbls of gross 2P oil reserves in the Middle Eocene. It also has 38 MMbbls of gross 2C contingent resources of oil and 608 BCF of gross unrisked 2C contingent resources of gas in the Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1 January 2018).
Block also holds 100% and 90% working interests in the onshore oil producing Norio and Satskhenisi fields.
The Company offers a clear entry point for investors to gain exposure to Georgia's growing economy and strong regional demand for oil and gas.
1. Block is using the suffix 'Z' in a well number to indicate a horizontal sidetrack.
2. Wells have been referred to as '16aZ' and '38Z' in previous updates. The Company is now prefixing well numbers with the initials of the field in which they are located. '16aZ' at West Rustavi, for example, is now referred to as 'WR-16aZ'.
3. bbls: barrels. A barrel is 35 imperial gallons.
4. BCF: billion cubic feet.
5. liner: a casing string that does not extend to the top of the wellbore, but instead is anchored or suspended from inside the bottom of the previous casing string.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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