Block Energy, the exploration and production company focused on Georgia, today announced that the JSR-01 DEEP testing programme has proven oil from a previously unproduced zone in the Patardzeuli field.

Highlights:

• Results of JSR-01 DEEP testing programme have demonstrated the Company's concept of unswept oil in the Patardzeuli field.
• The well is currently on production at 45 bopd.
• The encouraging results mean the Company will continue to pursue Project II, the Patardzeuli full-field redevelopment.

Well JSR-01 DEEP is the Company's first Project II appraisal well located in the southwest of the Patardzeuli field.  The well was drilled 470m deeper than the donor JSR-01 well, close to the original oil-water contact.  Drilled at an inclined angle, it allowed the testing of different zones to help evaluate the remaining oil potential, which will inform future drilling and redevelopment plans. The field was acquired by the Company in 2020, and had produced 98 million barrels of oil between 1975 and 1985.

JSR-01 DEEP Testing Results

The testing programme was designed to evaluate fluid levels and prove commercially productive oil zones.

Over a period of two months commencing on the 21st October, the Company tested three overlapping reservoir sections under rod pump and electric submersible pump. The final test which has been on pump since the 9th of December, is producing at a rate of 45 bopd and will now be handed over to production.

The results of the testing programme have demonstrated that there is unswept commercial oil in the Middle Eocene of the Patardzeuli field. The Company is now in a position to advance Project II, from both a subsurface and operational perspective.

Future Plans for Project II

The results of JSR-01 DEEP are being incorporated into the subsurface model prior to an update of the Patardzeuli contingent resources.  This will support full-field redevelopment plans through the deepening of existing vertical wells and the design and execution of horizontal wells.

Unswept oil in the field will be initially targeted by low-cost drilling techniques using the Company's recently upgraded A-80 service rig for an initial well-deepening programme across the field (with average costs per deepening operation anticipated to be in the USD 100k region). An opportunity set of 15 existing vertical wells is being ranked to define the optimal deepening candidates.  

Following the deepening of these wells, the Company will then focus on horizontal drilling, designed to sweep larger undrained areas and deliver superior productivity versus vertical wells, as demonstrated in the West Rustavi/Krtsanisi and Ninotsminda fields.

Commenting, Paul Haywood, Chief Executive Officer of Block Energy plc, said:
"We are pleased with the results of the appraisal programme on JSR-01 DEEP. I would like to thank the operational and subsurface teams, who employed drilling techniques and reservoir characterisation technologies not previously used in Georgia to advance this project. They have delivered a comprehensive and successful testing programme that has allowed us to gain further confidence in the commerciality of Project II full-field redevelopment potential."

KeyFacts Energy: Block Energy Georgia country profile