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10 Sep 2018 | 10:01

Block Energy signs agreement with Norio Oil Company for well drilling, workovers

Explorer and producer Block Energy said Monday it had signed an agreement with Georgia-based drilling contractor, JSC Norio Oil Company to carry out a new programme of well drilling and workovers.

Under the terms of the agreement, which were yet to be finalised, the programme would be carried out across Block's three licence areas: Norio, Satskhenisi and West Rustavi, all of which collectively have net proven oil reserves of 1.5m barrels plus 61 million barrels of oil and about 473 billion cubic feet of gas.

The preparation of the two wells at West Rustavi would trigger an increase in the Block Energy's working interest in the West Rustavi licence to 50% from 25%.

NOC's ZJ40 drilling rig is also expected to drill two high impact horizontal side tracks in the West Rustavi permit during the fourth quarter of this year through the first quarter of next year, targeting initial oil production of about 600 barrels per day, the company said. The new drilling would increase Block’s working interest in the West Rustavi licence to 75% from 50%. 'The MOU signals the start of exciting times for Block during which shareholders can expect high-impact news flow on work programmes commencing across our three licence areas in Georgia,' said Paul Haywood, Director of Block Energy. 'Following a comprehensive tendering process, the principles for favourable terms for rig contracts have been negotiated which we expect, once finalised, will secure considerable cost savings.' '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.'

At 10:01am: (LON:BLOE) Block Energy Plc Ord Shs Gbp0.0025 share price was +0.03p at 3.3p

Story provided by StockMarketWire.com
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