Exxon to Study Georgian Upstream
US major, ExxonMobil, is to carry out a comprehensive review of western Georgia's hydrocarbon resource base and potential, under an agreement with the oil and gas department of the economy ministry, minnow Block Energy said November 19.
It said the agreement, "which follows the entry into Georgia of leading oil and gas services company Schlumberger, further highlights the growing interest among major oil and gas operators in Georgia's hydrocarbon resources".
ExxonMobil has agreed to build an integrated database of west Georgia's hydrocarbon potential based on the examination of historic geological and geophysical data provided by the department, and Schlumberger has 100% of three production-sharing contracts from areas that have produced 70,000 barrels/day, said Block.
Block said its assets have "significant development potential: proven plus probable gross oil reserves of 2.5mn barrels of oil; gross contingent oil resources of 72.9mn barrels and 626bn ft³ gas. Block is preparing to drill horizontal sidetracks and test the gas resource base on its West Rustavi licence with net contingent resources of 456bn ft³. Previous gas discoveries at West Rustavi lie on trend to the same play being targeted by Schlumberger on neighbouring fields".
Block Energy CEO Paul Haywood said the agreement with ExxonMobil "further validates the country's credentials as a secure and stable place to do business, and an emerging hydrocarbon jurisdiction in terms of naturally occurring oil and gas".
Among its assets is a "huge gas discovery that we estimate is potentially worth $600mn to Block. Having raised £5mn ($6.4mn) at the time of our IPO in June this year, we are well placed to play our part in realising the potential of Georgia's energy industry. Work is already underway at Norio to increase production to 150 bopd by Q1 2019, and we will drill sidetracks and test the gas discovery at West Rustavi shortly. With so much activity on the near horizon we look forward to a high-impact newsflow over the coming months".