Block Energy Share Discussion Threads

[toogood4me] 01/4/2019 10:09

Gas too exactly what he just said on Twitter

[toogood4me] 01/4/2019 10:06

Let's not forget GAS well"as the field holds legacy gas discoveries which support a gross ('2C') gross contingent resource of 608 BCF (Source: CPR)"

[newtothisgame3] 01/4/2019 10:04

#bloe CEO Paul Haywood, onsite in #georgia this weekend, introduces the infrastructure at West Rustavi well 16a, which is delivering extremely encouraging test flow rates - see this morning's RNS

[toogood4me] 01/4/2019 10:03

Previously 71% interest but now -- Agreement concluded with major Georgian shareholder for 100% Working Interest (WI) in flagship West Rustavi field, giving Block full strategic control over asset with company-making potential including gross contingent 2C resources of 38 million barrels of oil and 608 BCF of gas (Source: CPR dated 1 January 2018)

[toogood4me] 01/4/2019 09:58

• 0.9MMBbls2Pgrossoil reserves• 38MMBbls2Cgrosscontingent oil resources• 608BCF2Cgrosscontingentgas resources –US$1.6bn value• Netback*:~US$2.6/mcf;US$ 42-45 per bblTaken from corporate presentation Game changer results today

[johncasey] 01/4/2019 09:57

and opportunistic gamblers

[lithological heterogeneities] 01/4/2019 09:55

Well done to Roy and all other investors here I don't hold here but it's great to see fellow investors having a great time and making alot of money.

[toogood4me] 01/4/2019 09:49

I like this bit in the rns of 20marThe Company is aiming for a gross initial flow rate of 325 bopd at the well, which would generate a free cash flow of approximately USD 3.6m and payback well costs in less than six months (assuming a price of USD 60/bbl Brent). Well 16a produced some 35 Mbbls when first on production during the Soviet era. According to Gustavson Associates (Source: CPR dated 1 January 2018) West Rustavi's Middle Eocene reservoir holds 21 MMbbls of ('2C') contingent resources.That 3.6m cash flow on 325 it is now 1100 more cash

[toogood4me] 01/4/2019 09:43

Yeah know what your saying edge need some luck now on aim

[edgein] 01/4/2019 09:41

toogood,

Yes, perhaps not home and dry yet its still worlds apart from RMP. This one has flow rate and log info to support the current rise. RMP rose on hype from about 1p-4p pre-drill, then onto 7p on even more hype but no flow rates. If this one is reported as successful in the near term with the conclusion of the testing then it'll justify its rise and then some. As management said if it flowed at the expected 325bopd it would be transformational and they could book some of that 2C into 2P. Then follow that up with another sidetrack of well 38. Certainly not risk free, but interesting times ahead.

Regards,
Ed.

[johncasey] 01/4/2019 09:41

and datait

[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