BLOCK ENERY DRILLS WELL IN GEORGIA, FINDS FAVORABLE RESULTS

(WO) – Block Energy, an exploration and production company focused on Georgia, announces initial results from the WR-B01Za well, part of the initial development phase of the West Rustavi/Krtsanisi Field, the Company’s Project I.

The well was drilled into the Middle Eocene reservoir, targeting lineations interpreted on the 3D seismic survey to represent productive sweet spots with high density of oil-bearing natural fractures.

The well’s planned trajectory consisted of a long horizontal reservoir section intersecting the fault/ fracture system. Total Depth (“TD”) was called at 2,372 m MD, instead of the intended 2,682 m MD, due to unstable wellbore conditions across a suspected fault at approximately 2,275 m MD which caused escalating tool failure and lost-in-hole risk.

Significant drilling fluid losses and gas and oil shows were observed while drilling beyond the problem zone, indicating a potentially productive well, but currently constrained due to the wellbore failure.  

Intermittent testing has produced some dry oil with zero water cut and high gas volumes, despite the wellbore issue. The well will now enter an extended well test period during which oil and gas will be sold whilst data is acquired to optimize the completion design, which may require further low-cost drilling operations to remedy or by-pass the wellbore failure and improve overall wellbore connectivity to the productive zones.

Commenting, Paul Haywood, Block Energy CEO, “The drilling and geoscience teams have done an excellent job completing this well, given the challenges experienced while drilling the horizontal section. Drilling data indicates a good reservoir containing oil with significant gas. The extended test will provide the data required to optimize the completion design whilst monetizing both oil and gas produced. Production results and forward plans will be communicated once the extended test is complete and production rates have stabilized.

“Meanwhile, the Company is reviewing the data gathered during drilling and testing WR-B01Za to optimize the KRT-45_ST drilling program, the second Project I development well. The Company continues to work on Projects II, III, and IV, and we look forward to updating shareholders as we progress.”