Block Energy contracts drilling, workover equipment for multi-well program in Georgia

LONDON -- Block Energy Plc, the exploration and production company focused on the Republic of Georgia, has announced that it has signed an agreement with JSC Norio Oil Company (JSC NOC), a Georgian drilling contractor, and Georgia Oil and Gas Ltd. (GOG), a British Virgin Islands company and owner of drilling equipment in the Republic of Georgia, for the supply of drilling and workover equipment for the Company’s 2018-2019 work programs across its Georgian license base.

Block holds a 100% working interest (WI) in the Norio license, a 90% WI in the Satskhenisi license and a 75% working interest in the West Rustavi permit after earn-ins described in the Company’s admission document. These, collectively, have been assigned net proven oil reserves of 1.5 MMbbl plus 61 MMbbl of oil and ~473 Bcf of gas classified as net unrisked 2C contingent resources. LLC Norio Operating Company (NOC LLC) is an approved operating company in the Republic of Georgia and operates Norio, Satskhenisi and West Rustavi fields on behalf of Block and its subsidiaries.

The Agreement gives Block unlimited and exclusive access to two A50 workover rigs and a ZJ40 drilling rig owned by JSC NOC and GOG and also provides the Company with access to a significant inventory of other miscellaneous drilling and workover related equipment for a period of six months (Initial Term). In addition, the Company has secured an option to extend the Initial Term by up to a further six months. The A50 service rigs have already been successfully inspected and will now be made immediately available to Block.

The first A50 rig will be mobilized within the next few days to commence the scheduled work program. This is focused on rapidly increasing production across Block’s licence base to ~900 bopd within 24 months. In addition, a legacy gas discovery in the Lower Eocene on West Rustavi will be retested. This specific play has been assigned net unrisked 2C contingent resources of 291 Bcf of gas and 3.5 MMbbl of condensate and lies on trend to the same play being targeted by oil and gas services giant, Schlumberger, in close proximity on neighboring fields.