Business
Advanced Technology Secured for Workover Programme
Advanced Technology Secured for Workover Programme.
About this update from Block Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0388K Block Energy PLC 11 December 2018 \n\n \nBlock Energy Plc / Index: AIM / Epic: BLOE.L / Sector: Oil and Gas\n11 December 2018\nBlock Energy Plc (\"the Company\", \"Block\" or \"the Group\")\nAdvanced Completion/Work-Over Technology Secured for Multi-Well Programme in Georgia\n \nBlock Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce it has signed a service agreement for the provision of an advanced downhole perforation technology with a proven record of significantly enhancing recovery rates. The agreement gives Block exclusive access to the specialist drilling tool throughout eastern Europe, the Caucasus and central Asia. The Company will use the technology, which arrived onsite at Block's operations in Georgia on Thursday (7 December 2018), to re-complete up to eight wells at its 100% owned Norio licence, part of an initial work programme targeting an increase in production at the field to 250 bopd by H1 2019.\n \nBlock has selected the tool, which is new to Georgia, over conventional perforation technologies that have had mixed success in the country. It promises to significantly enhance recovery rates by facilitating wellbore communication with reservoirs, creating a relatively small horizontal borehole (about one inch in diameter) milled through the casing wall then drilled several feet into the formation. The tool, which has been used by many operators since it was introduced in the 1990s, can drill at multiple levels and orientations in the course of a single run into the hole and can achieve up to eight or more penetrations.\n \nThe Company has signed Heads of Terms ('the Terms') for an agreement pursuant to which Block will help promote the technology to other exploration and production companies operating within the region, and so earn a net royalty of 10% from revenue the tool's suppliers earn through Block's marketing activities. The Terms also include the option of a Joint Venture Agreement pursuant to which Block would become the exclusive provider of the technology within the region.\n \nPaul Haywood, Director of Block Energy, said: \"This specialist tool is potentially game-changing for Block, offering a reliable and cost-effective alternative to conventional perforating technology, which to d...