“The commencement of gas sales is a great achievement,” said Paul Haywood.
The company described it as a “major milestone” which represents a significant step change in its progression in becoming a sustainable energy provider to Georgia.
“The commencement of gas sales is a great achievement, as Block has managed to deliver its gas project in a safe manner, with zero LTIs (lost time incidents), in the face of a very challenging global environment,” said Paul Haywood, Block chief executive.
Two West Rustavi wells, WR-38Z and WR-16aZ, have been on continuous production in the early weeks of 2021 with production rates currently seen at around 790 barrels oil equivalent per day in aggregate – comprising 423 barrels of oil and 1.9mln cubic feet of gas per day.
The company highlighted that this production performance represents a substantial increase when compared to the rates prior to their temporary shut-in back in April 2020.
Production across all of Block’s portfolio is presently measured at around 940 boepd, which at current oil and gas prices, the company estimates is equivalent to around US$920,000 per month.
Block also noted that its production rates are also presently constrained as it continues to test and monitor reservoir and facility parameters.
Testing is slated to continue into the second and thereafter the company intends to communicate to the market the well’s stable production rates.
Haywood added: “The expected revenue from our assets now puts us in a strong position as it is expected to more than cover our operating and administrative expenditure and, therefore, we can look to deploy the surplus cash into further increasing our production rate throughout 2021.”
“Our decision to shut in our production at the West Rustavi field in April 2020 has proven to be an astute one, as we can now sell our oil based on a Brent price above US$60/bbl.
“By commencing gas sales, we have started to deliver on our ESG strategy of limiting flaring and consequently reducing our carbon footprint.
“We look forward to updating the market further as we embark on our production enhancement plan across our mature fields and prepare for the drilling new wells soon.”
Read More: Block Energy Plc sees major milestone as gas sales start at West Rustavi