What it owns
Block owns 100% with the field holding an estimated 38 MMbbls (million barrels) of gross contingent resources (‘2C’) of oil which the company hopes to mature to 2P reserves.
In addition, there are legacy gas discoveries supporting a gross contingent (‘2C’) resource of 608 BCF (Source: CPR).
In March, Block acquired new acreage in Georgia, picking up two areas held by Schlumberger for no upfront cash consideration.
Schlumberger will instead be given options over Block Energy stock – 120mln shares, or 23.3% of the company, ascribing a base deal value of around US$6mln.
The firm is acquiring Block XI which is described as “Georgia’s most productive block” – over 180mln barrels of oil have been produced historically, with a peak of 67,000 barrels of oil per day (bopd) in the mid-1980s – and, it adds 64mln barrels (boe) of 2P oil reserves to the group.
Block is undertaking a programme of workovers and sidetracks at Norio, also in Georgia, to boost production to 250 barrels per day.
A potential 28mln barrels where exploration is in the process of getting underway.
How it’s doing
Block has gone into cash preservation mode following the coronavirus outbreak.
The company had been producing at around 325 barrels of oil equivalent per day (boepd) from the West Rustavi before a temporary shutdown was brought in to conserve oil that would otherwise be sold at a low price and gas that would otherwise be flared.
Block Energy ended December with US$6.49mln of cash, and it reported a US$6.03mln loss for the year.
What the boss says: Philip Dimmock, chairman
“We are accelerating the exploitation of gas resources in West Rustavi and are planning the increase of oil production and exploitation of gas resources in the blocks being acquired from Schlumberger,”
“We are confident the market will recognise our inherent value and re-rating potential.”
- Resumption of production from West Rustavi legacy and sidetrack wells
- More horizontal sidetracks scheduled for West Rustavi
- Assessment of recently acquired Schlumberger assets
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