Block Energy receives production sharing contract for West Rustavi license in the Republic of Georgia

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, has announced that the production sharing contract (PSC) terms for its West Rustavi license have been accepted by the government of the Republic of Georgia. The block holds a 25% working interest in West Rustavi which has proven reserves and gross, unrisked contingent resources of 608 Bcf gas and 37.9 MMBbls of oil.
 
The PSC will become effective as of September 1, 2018 and will allow the block to conduct planned operations within the license area.  As previously announced, service inspections for one workover rig and one drilling rig are complete with final negotiations for contracts underway ahead of mobilization to the block’s license areas. Drilling of the first high-impact horizontal side-track is expected to commence during fourth-quarter 2018 and to be completed and on production by early first-quarter 2019. Initial oil production from this well is forecast to be approximately 300 bopd and the block has identified four other existing wells that can be re-entered and side-tracked in a similar manner.
 
Paul Haywood, director of Block Energy, said, “We are delighted to have received the production sharing contract for West Rustavi which will allow us to hit the ground running with our high-impact work program. With multiple discoveries already made within the license which lie on trend with the same play currently being drilled by Schlumberger on neighboring license, West Rustavi represents significant development potential and value uplift for the company.”