Georgian-focused oil producer Block Energy (BLOE:AIM) gushes 72.4% higher to 6.72p on highly positive drilling results from the country.
In a nutshell. a new side-track well on its West Rustavi project yielded 1,100 barrels of oil per day (bopd), more than three times the 325 bopd pre-drill target and making it one of the most productive wells ever to be drilled in Georgia. The company itself says it is the best in the last 50 years.
A sidetrack involves re-entering a well from its surface location but then deviating from the existing hole which has been sunk to target another part of the sub-surface.
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Cantor Fitzgerald says: ‘An excellent result from the company’s first horizontal sidetrack. While production rate will depend on analysis of the various tests still ongoing, this bodes very well for the wider potential across the field.’
The company has a 71.5% interest in West Rustavi and this is set to increase to 100% through a phased agreement with Georgian Oil and Gas. Several other wells on the field have been identified as being suitable for side-tracking operations, with the company already gearing up to drill the nearby well 38.
The company, which joined AIM in June 2018, is aiming to become Georgia’s largest independent oil and gas producer. Oil giant Schlumberger acquired its own licences in the country, which neighbour Block’s, in 2017.
