Block Energy PLC (LON:BLOE) is seeking to drill two wells, each targeting initial production of 600 barrels of oil equivalent per day (boepd), and spud a third well by the end of 2021, the company said as it set out its objectives for the year.
Its current production rate across all of its licences (excluding WR-16aZ well, which is undergoing intervention) is 555 boepd, based on a 30-day average, the company said alongside a first-quarter operational update.
The first well at the WR-BA site is expected to spud in May/June 2021, while the second well's location and timing will be finalised based on information from WR-BA.
"I am very pleased to be able to announce a definitive set of objectives that Block has set itself for the year, along with detail of the drilling plans formulated to achieve these objectives,” said chief executive Paul Haywood.
In the first quarter of 2021, Block produced a combined total of 44,394 boe of oil and gas and sold 26,300 barrels for US$1.37mln, or US$52 a barrel.
Gas sales started on 15 February and Block sold 38,400 metric cubic feet (Mcf) of gas during the first quarter for US$125,000, or US$3.26 per Mcf.
The Georgia focused company recently appointed Andrew Moncur as its new drilling manager. Moncur started his career in the North Sea and spent the last 22 years managing drilling operations in the Middle East, Caspian and the former Soviet Union.
“The strengthening of Block's drilling team and the objectives set by the board has taken the company's potential to the next level and I look forward to kicking off our 2021 drilling programme in May,” said CEO Haywood.
“We have several options to pursue in the West Rustavi licence, each targeting approximately 600 boepd, and have significant remaining reserves to access in Block XIB,” he added.
As of end March 2021, the company had a strong liquidity position with US$6.8mln cash at bank.
“We enter the drilling campaign with a healthy balance sheet, as our cash and ongoing oil and gas sales means we can plan a sustainable growth strategy for the company,” said Haywood, adding that 2021 will be a busy year for the company.