Page 15 - FSUOGM Week 25

FSUOGM PROJECTS & COMPANIES FSUOGM

Block reports arrival of production

equipment at West Rustavi

GEORGIA GEORGIA-FOCUSED junior Block Energy EPI will assist with sub-surface reservoir devel-
has announced the arrival of an early produc- opment at both Block’s existing fields and
Block is looking to tion facility (EPF) at its West Rustavi gas field new blocks it is set to acquire from US firm
expand its acreage in near Tbilisi, taking the project one step closer to Schlumberger.
Georgia, despite cutting launching gas sales. “Their expertise will immediately strengthen
costs. The EPF, delivered from Canada, comprises our current workstreams, whilst defining our
an inlet manifold for six wells, separators and a next phase of development,” Block CEO Paul
gas dehydration and measuring unit, Block said Haywood said, adding that the consultancy’s
in a statement on June 18. Block aims to start engagement represented “a strong vote of con-
selling gas from West Rustavi in the second half fidence,” in its asset base.
of the year, once the WR-16aZ and WR-38 wells Block sees particularly significant potential
have been hooked up to the manifold and a gas for the horizontal side-tracking of existing wells,
pipeline has been completed. it said, including the appraisal of the PAT-E1 gas
Block in April announced it would cut cash discovery sunk by Schlumberger last year. EPI
spending by 40% in response to the coronavirus will help analyse the geological aspects of hori-
(COVID-19)-triggered collapse in oil and gas zontal well design and the selection of ranking
prices. This means that the group’s employees of previously identified opportunities at the
are sacrificing 40% of their cash salary, agreeing Schlumberger-operated Block XIB.
to take a deferred cash payment or share options “The newly formed relationship with EPI
instead. will significantly augment our technical capa-
The London-listed company noted that there bility and enhance the group’s ability to define
were no COVID-19 cases at West Rustavi, where the optimum development programme for
its two wells have remained shut-in since April. the soon-to-be-acquired XIB asset,” Haywood
Georgia has started easing lockdown measures, said.
with borders due to be reopened to foreign trav- Block has not said when it expects to close the
ellers next month. all-shares acquisition from Schlumberger. As the
Block added it had teamed up with inter- company focuses on its balance sheet manage-
national consultancy EPI to help plan out its ment and cash conservation, its engagement
development work. The partnership “will add with EPI is structured to share risk and reward,
significant value and technical discipline to partly tied to drilling performance and well pro-
future oil and gas development programmes.” ductivity, the company said. ™

Week 25 24•June•2020 www. NEWSBASE .com P15