Block Updates on Georgian Drilling
London-listed Block Energy has begun work on a sidetrack well at its West Rustavi oil and gas field in western Georgia, it said in a stock exchange filing on September 25.
The WR-38Z borehole is targeting Middle and Upper Eocene formations that are “on-trend” with and “up dip” of its WR-16aZ well. WR-16aZ was sunk and tested earlier this year, flowing at a rate of 1,100 b/day of oil – more than three times what was anticipated.
Since restoring flows at WR-16aZ in July, Block noted that production had “varied significantly” owing to the failure of certain downhole equipment during cementing work. However, it said that the well continued “to flow strongly” a mixture of oil, gas and water. Oil output averaged 230 b/day between September 17 and 23, while gas was extracted at a rate of 130,000 ft3/day. Block said gas flow rates had been “significantly higher” than expectations, sometimes exceeding 500,000 ft3/day.
“In the course of drilling WR-16aZ we have strengthened our understanding of the drilling techniques applicable to Georgia which will be invaluable as we begin drilling well WR-38Z, the second of five wells we plan to horizontally sidetrack in our fully-funded campaign,” Block CEO Paul Haywood said.
West Rustavi's best-estimate contingent resources are estimated at 38mn barrels of oil and 17.2bn m³ of gas. Block raised its stake in the project from 71.5% to 100% in July.