Block Energy Plc (‘Block' or ‘the Company'), the exploration and production company focused on the Republic of Georgia, is pleased to announce that the Production Sharing Contract (‘PSC') terms for its West Rustavi licence (‘West Rustavi' or ‘the Licence') have been accepted by the government of the Republic of Georgia. Block holds a 25% working interest in West Rustavi which has proven reserves and gross, unrisked contingent resources ('2C') of 608 BCF gas and 37.9MMBbls of oil.
The PSC will become effective as of 1 September 2018 and will allow Block to conduct planned operations within the Licence area. As previously announced, service inspections for one workover rig and one drilling rig are complete with final negotiations for contracts underway ahead of mobilisation to Block's licence areas. Drilling of the first high impact horizontal side-track is expected to commence during Q4 2018 and to be completed and on production by early Q1, 2019. Initial oil production from this well is forecast to be approximately 300bbls/d and Block has identified four other existing wells that can be re-entered and side-tracked in a similar manner.
Paul Haywood, Director of Block Energy, said: “We are delighted to have received the Production Sharing Contract for West Rustavi which will allow us to hit the ground running with our high-impact work programme. With multiple discoveries already made within the Licence which lie on trend with the same play currently being drilled by Schlumberger on neighbouring licence, West Rustavi represents significant development potential and value uplift for the Company. I look forward to updating shareholders as further progress is made.”