Block Energy Share Discussion Threads

[toogood4me] 01/4/2019 09:39

Wonder when tidy 2 will turn up

[johncasey] 01/4/2019 09:37

i wouldnt have seen this share but for some kind guy was ramping it on the ukog thread..thanks alot mate

[edgein] 01/4/2019 09:35

From the bigger delayed trades coming through now it looks like someone's been working the bid like a cheap tart.

Regards,
Ed.

[toogood4me] 01/4/2019 09:32

I was in rmp and got out between 6.5-7p phewww This seems a much better prospect going forward. Gla

[edgein] 01/4/2019 09:29

Cash,

Fair play fella, not every one likes a bit of risk, I watched RMP as wasn't keen on their build up and thankfully stayed on the sidelines. But just may be unwise to tar this one with the FRR brush given the location of their block and the other large fields that have produced significant volumes from the same formation. Its all about the natural fractures and oil saturation, both of which seem to be present from the log and test results. Given the upside vs the small cap I put this one firmly in the worth the risk category for now.

Regards,
Ed.

[toogood4me] 01/4/2019 09:27

Wouldn't be surprised to see this soon in the 20s Slow Monday as the herd have t even arrived

[toogood4me] 01/4/2019 09:24

Block Energy Plc | Index: AIM pan>Testing rate of 1,100 bbl/d ('barrels per day') on a one eighth inch (? inch) choke significantly exceeds base case production rate· Well performance ranks amongst some of the best drilled in Georgia

[cashandcard] 01/4/2019 09:23

Some valid points Edgein. I look forward to how they complete this well and what production is like for first month. As I mentioned, the high pressures will assist a slug of oil initially, its where it settles after that which I am interested in. I think its safe to say it should be well over management guidance.


Cash

[edgein] 01/4/2019 09:21

BLOE's licence borders with the largest oilfield in Georgia:

"Located in the Kura basin and contiguous to largest historical producing field in Georgia (c. 70,000 bopd at peak)."



Same middle Eocene formation as Block is targeting. Noone is saying this is another Samgori and do 200mmbbls recovered, but its right next door. And it did also have naturally fractured reservoirs.

Regards,
Ed.

[edgein] 01/4/2019 09:10

Also the fact that they're getting over x3 the expected flow rates also suggests that flowing pressure is good and that they've not drilled overbalance.

Regards,
Ed.

[edgein] 01/4/2019 09:08

Cashandcard,

Yes there can be a lot of tight formations in Georgia as FRR has frequently demonstrated but not always the case:

"Hydrocarbon readings derived from field interpretation of drill cuttings (taken in five metre intervals) and live oil shows on the shale shaker unit and frequent spikes in gas readings provide strong indications that the expected naturally fractured hydrocarbon reservoir Middle Eocene formation was entered, and that the entire horizontal section was drilled within it."

They were expecting the reservoir to be naturally fractured before drilling and the non-stimulated horizontal so far supports that, especially with the regular gas spikes while drilling. That suggests good reservoir communication. Even though the 1,100bopd was limited by the test equipment and on a restricted choke, I'd imagine they'll tie it in at around 500-600bopd a noticeable mark up to the current 60bopd and then onto the next sidetrack.

Regards,
Ed.

[costax1654x] 01/4/2019 09:08

10p still cheap...15-20 once production starts

[toogood4me] 01/4/2019 09:06

Small stop as some jump off. Mms will accumulate and ask will jump. Nice pattern here and looks very very strong for a rise Next rns is good will also help push this into double figures

[toogood4me] 01/4/2019 09:03

Will be over 10p soon at this rate Buy and hold share like some of these other oilers who started under 10p but grew to pounds

[cashandcard] 01/4/2019 08:58

These are excellent results, well done!

But I notice the would 'initial' and that needs to be understood in the context of Georgia and Azerbaijan where initial rates tend to be impressive, as a slug of oil flows out. But then a chunky decline sets in, noticeable between 24hr IP and 30day IP. I think management have done well to manage expectations at 325bopd and that's very realistic in longterm.


Cash

[johncasey] 01/4/2019 08:56

whats going on? buys at nearly 6p and offer still at 5.5p

[edgein] 01/4/2019 08:55

John,

That's a pity it makes it harder to get filled on the bid! :) Some very positive stuff in that RNS and previous ones regarding the material nature of this programme to the company. 2P of 1.6mmbbls and 60bopd, vs 2C 38mmbbls (and the large gas 2C too) and potential of 1,100bopd with more sidetracks to come. Management thought that Circa 325bopd would be tranformational. The fact that the 1,100bopd was restricted by test equipment and they had regular gas spikes while drilling the horizontal and stable flowing pressure on test suggests gas drive in place. Market seems oblivious to this at the moment. If they can sustain flow rates anywhere close to this I'd expect a material amount of 2C to get upgraded, material that current 2P is just 1.6mmbbls. A lot of folks will also be eagerly awaiting the next sidetrack now too.

Agree ANGS and UKOG I took back off my watchlist a while back, BLOE was there for a reason.

Regards,
Ed.

[toogood4me] 01/4/2019 08:47

270m shares in issue and low Mcap with exceeding results. Buy the dips here

[johncasey] 01/4/2019 08:45

makes a change no derampers here

[top tips] 01/4/2019 08:39

Been accumulating since the dip at year end. Very good news today.

[toogood4me] 01/4/2019 08:39

Under radar share I'm in

[johncasey] 01/4/2019 08:32

this share is well off the radar...wait until the herd arrive..could get interesting,i think 30p easily

[metis20] 01/4/2019 08:28

From HY report

At US $60/bbl Brent, the 325 bopd forecast for sidetracked West Rustavi well would:

o Generate free cash flow of US $3.6m per annum

o Pay back well costs in less than six months

o Open possibilities for further sidetracking operations at West Rustavi and exploration of the field's legacy gas discoveries

and today we have

Block Energy Plc | Index: AIM pan>Testing rate of 1,100 bbl/d ('barrels per day') on a one eighth inch (⅛ inch) choke significantly exceeds base case production rate

· Well performance ranks amongst some of the best drilled in Georgia

[johncasey] 01/4/2019 08:16

makes ukog and angus look silly..i'm selling out of them and buying more here...seen the light