KEYFACT Energy
Block Energy Plc, the exploration and production company focused on the Republic of Georgia, announces the mobilisation of a ZJ40 drilling rig to the site of well 38Z at its flagship West Rustavi field in preparation for planned horizontal sidetrack operations.
An A50 service rig was moved to the site to workover the well earlier this month (RNS: https://bit.ly/2YxCYYx). The mobilisation of the ZJ40 rig triggers the 12 month term of the agreement the Company reached this July with JSC Norio Oil Company and Georgia Oil and Gas Ltd for the hire of drilling and workover equipment (RNS: https://bit.ly/33fLpX6).
The sidetracking of well 38Z is the next phase in Block's £12 million programme to rapidly scale oil and gas production across the Field, in which Block holds a 100% working interest. West Rustavi has an estimated 0.9 MMbbls 2P oil reserves, 38 MMbbls of gross unrisked 2C contingent resources of oil in the Middle, Upper and Lower, Eocene and 608 BCF of legacy gross unrisked 2C contingent resources of gas in the Eocene and Cretaceous (Source: CPR Gustavson Associates: 1 January 2018).
Well 38Z is analogous, adjacent and updip to well 16aZ, where Block resumed production last month (RNS: https://bit.ly/2SRUO2l). Both wells target the same Middle Eocene formation. The Company will draw on the valuable experience gathered from the drilling of well 16aZ to optimise the completion design for well 38Z. Block plans to horizontally sidetrack three other wells across the Field in addition to wells 38Z and 16aZ, and acquire a 3D seismic survey to pinpoint further optimal locations for production.