Block Energy resumes production at West Rustavi

A minimum of 1200 bbl of drilling fluid were lost to the well during drilling and completion operations, a considerable amount indicative of the high productivity of the fractures system. Estimates of the volume of water produced and observations of polymer and other drilling fluid chemicals indicate that the well continues to clean up lost drilling fluid and stabilise.

The company is gradually increasing production to establish a sustainable flow rate as the well cleans up. Produced oil is being transported to storage leased by Block at a facility owned by the Georgian Oil and Gas Corporation ('GOGC'), the state-owned national oil company of Georgia, near the town of Sartichala, some 30 km along the Khakheti motorway from West Rustavi. Block entered into an agreement with GOGC last month allowing access to 90 000 bbl storage capacity.

Bringing well 16aZ onto production is a significant step in Block's fully-funded £12 million programme to realise West Rustavi's potential (RNS: https://bit.ly/2WYyx8e), which was demonstrated by the exceptional test production rates of 1100 bpd - more than three times pre-drill expectations - recorded at the Well on 1 April this year. Preparations are well advanced for the horizontal side tracking this summer of well 38Z, analogous, adjacent and updip to well 16aZ, and targeting the same Middle Eocene formation. Well 38Z is one of four wells the company plans to sidetrack across the Field - in which Block now holds a 100% Working Interest ('WI') - during its 2019/2020 back-to-back drilling campaign. The award of the contract for Block's planned 3D seismic survey of the Field is also imminent. The processing and interpretation of this survey by the latest techniques will enable the company to pinpoint optimal drilling locations.

In parallel with its operations at West Rustavi, Block continues to produce oil at its Norio (100% WI) and Satskhenisi (90% WI) licences, at a cumulative average production rate of 26 bpd.

Paul Haywood, Block Energy Chief Executive Officer, said: 'We are pleased to resume production at well 16aZ and look forward to establishing with due caution a stable production rate for our best performing well to date. The Well produced exceptional test rates earlier this year and offers excellent netbacks of US$35/bbl at US$65/bbl Brent.

'With the resumption of production at well 16aZ our fully-funded back-to-back multi-well drilling programme continues to gather momentum. We now keenly anticipate ramping up production with the sidetracking this summer of well 16aZ's neighbouring well, 38Z. Three of West Rustavi's other wells will also be sidetracked in the Middle Eocene structure, and two of them tested for their historic gas discoveries in the Lower Eocene. We also look forward to acquiring a 3D seismic survey that will identify optimal locations for new horizontal oil and gas wells across the Field and support an upgrade of the company's CPR, prepared back in January 2018.'

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/26072019/block-energy-resumes-production-at-west-rustavi/