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24 Sep 2018 | 09:16

Block Energy signs rig, equipment contracts for multi-well programme in Georgia

Block Energy said Monday it had signed an agreement with JSC Norio Oil Company, and Georgia Oil and Gas Ltd, for the supply of drilling and workover equipment for the company's 2018 and 2019 work programmes.

The agreement provided Block unlimited and exclusive access to two A50 workover rigs and a ZJ40 drilling rig owned by JSC Norio Oil Company and Georgia Oil and Gas and also provided the company with access to a significant inventory of other miscellaneous drilling and workover related equipment for an initial term of six months.

Block said it had also secured an option to extend the initial term by up to a further six months.

The A50 service rigs had already been successfully inspected and would now be made immediately available to Block. The first A50 rig would be mobilised within the next few days to commence the scheduled work programme, Block said.

'The signing of this Agreement represents the culmination of a considerable amount of work by the team since our AIM IPO in June. Importantly, the work programmes across our three licences in Georgia can now get underway in the knowledge that we have secured access to the required rigs on favourable terms,' said Paul Haywood, Director of Block Energy.

'As well as generating significant cost savings for the Company and mitigating equipment availability risks, the Agreement provides us with full control over forthcoming operations as we look to embark on our low risk, low cost work programmes to scale up oil production to 900 bopd within 18 -24 months.' At 9:16am: (LON:BLOE) Block Energy Plc Ord Shs Gbp0.0025 share price was 0p at 3.15p

Story provided by StockMarketWire.com
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