Business
Update - West Rustavi Well 16a
Update - West Rustavi Well 16a.
About this update from Block Energy Plc
[{"type":"text","content":"\n \nRNS Number : 3676T Block Energy PLC 20 March 2019 \n\nBlock Energy Plc | Index: AIM ss=\"az\">· Total Drilled Depth of 2,659 metres reached at well 16a following successful horizontal sidetracking operations\n· Significant oil and gas shows in the Upper and Middle Eocene formations with testing in the Middle Eocene to begin later this week\n· Seeking to increase the Company's gross production by 325 bopd and to add USD 3.6m of free cash flow to annual revenue\n· Follow-on West Rustavi candidate well 38, in close proximity to 16a, is primed for sidetrack operations subject to 16a results\nBlock Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to report that Total Drilled Depth ('TDD') has been reached at well 16a ('16a' or 'the well') at its West Rustavi field ('West Rustavi') after the successful completion of horizontal sidetracking operations.\nA TDD of 2,659 metres was reached after the well was re-entered and cleaned, a whipstock positioned at 1,932 metres below the ground, a build section drilled 205 metres into the top of the targeted Middle Eocene, and a further 522 metres (some 100 metres more than the original plan) drilled horizontally into the formation's reservoir.\nHydrocarbon readings derived from field interpretation of drill cuttings (taken in five metre intervals) and live oil shows on the shale shaker unit and frequent spikes in gas readings provide strong indications that the expected naturally fractured hydrocarbon reservoir Middle Eocene formation was entered, and that the entire horizontal section was drilled within it.\nThe Company is aiming for a gross initial flow rate of 325 bopd at the well, which would generate a free cash flow of approximately USD 3.6m and payback well costs in less than six months (assuming a price of USD 60/bbl Brent). Well 16a produced some 35 Mbbls when first on production during the Soviet era. According to Gustavson Associates (Source: CPR dated 1 January 2018) West Rustavi's Middle Eocene reservoir holds 21 MMbbls of ('2C') contingent resources.\nSignificant oil and gas shows were also seen during the drilling of the Upper Eocene build section. The Company has logged this section of the well, and inititial interpretation indicates oil satu...