Block Closes Schlumberger Purchase in Georgia
London-listed Block Energy has closed the purchase of licences for two blocks in Georgia from Schlumberger, it said on November 24, significantly increasing its production and providing it with new development and exploration opportunities.
Block, which is developing several oil and gas fields near Tbilisi, signed a sales and purchase agreement in March to assume Schlumberger's production-sharing agreements at block XIB and IX, for no upfront payment. The pair amended the deal this month, giving Block rights to oil inventories held by Schlumberger.
Block CEO Paul Haywood commented that the deal was "transformational" for the company. It "enhances our current production, increases our acreage 30-fold and adds exciting new development opportunities," he said.
Block said in March it would net 64mn barrels of oil equivalent in proven and probable reserves and 245 b/d of initial oil production from the transaction. The blocks also hold 600bn ft3 of initial in-place gas.
Block has continued subsurface technical studies of the assets, it said, "yielding economically attractive short and medium-term opportunities." It will shortly apply for permits for a workover and drilling programme across the XIB and West Rustavi licences.