Gulf Oil and Gas accountACCOUNT

Block Energy Signs Gas Sales Agreement for West Rustavi Field

Source: www.gulfoilandgas.com 10/30/2019, Location: Asia

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, is pleased to announce it has entered into a gas sales agreement ("the Agreement") with Bago LLC ("Bago"), one of the largest private gas suppliers and purchasers in Georgia, for the offtake of gas produced at the Company's flagship West Rustavi field ("West Rustavi" or "the Field").

Under the terms of the Agreement, which runs until 31 December 2022, Bago will purchase gas produced from the Field at a price of US$5.24 per MCF. Bago will also pay for the costs of installing the infrastructure necessary to connect the gas produced from the Field to Georgia's gas distribution network. West Rustavi has gross, unrisked 2C contingent gas resources of 608 BCF in the Eocene and Cretaceous formations. The Agreement, which follows a Memorandum of Understanding announced on 5 October 2018, was finalised following Bago's appraisal of gas samples from the Field. Sales are expected to commence during Q1 2020.

Free and associated gas is currently being flared from well WR-16aZ under a temporary permit issued by the Georgian state. Block is pursuing a multi-well programme designed to realise West Rustavi's oil and gas potential, including the sidetracking of a second well, WR-38Z, updip and analogous to WR-16aZ, targeting the same Upper and Middle Eocene formations. Block also plans to sidetrack three other wells, test one of the Field's gas discoveries, and drill a new gas well during its campaign. The Company is also acquiring a 3D seismic survey to provide a critical understanding of West Rustavi's subsurface, allowing identification of optimal locations for future drilling.

Block Energy Chief Executive Officer Paul Haywood said:

"We are delighted to sign this Agreement with Bago, one of Georgia's largest domestic private gas traders with ready access to extensive infrastructure capable of handling large volumes of gas. West Rustavi is the site of multiple historic gas discoveries, which we will test in the course of our work programme. When we have made further progress with our campaign, we look forward to providing guidance for West Rustavi oil and gas production for 2020."

Roger McMechan, Technical Director, has reviewed the reserve, resource and production information contained in this announcement. Mr McMechan has a BSc in Engineering from the University of Waterloo, Canada and is a Professional Engineer registered in Alberta.

Natural Gas News in Georgia >>

Australia >>  12/11/2019 - Senex Energy Ltd (SXY) announced an expansion of its natural gas sales agreement with leading manufacturer Orora Limited, agreeing to supply 13.2 peta...
Australia >>  12/10/2019 - Senex Energy Ltd has announced that Project Atlas achieved first gas sales into the east coast market ahead of schedule, with gas being sold to Queens...

Qatar >>  12/8/2019 - Qatargas Operating Company Limited (Qatargas) successfully delivered the 2,000th liquefied natural gas (LNG) cargo to India. ...
Russia >>  12/6/2019 - The bilateral negotiations at the expert level between Gazprom and Gas Transmission System Operator of Ukraine with regard to the terms of transiting ...

Russia >>  12/2/2019 - A ceremonial event marking the start of first-ever pipeline supplies of Russian gas to China via the eastern route the Power of Siberia gas trunklin...
Israel >>  11/21/2019 - Energean Oil and Gas plc (ENOG), the oil and gas producer focused on the Mediterranean, is pleased to announce that Energean Israel and MRC Alon Tavor...

Related Categories: Coal  Electricity  General  Natural Gas  Oil 

Related Articles: Coal  Electricity  General  Natural Gas  Oil 


Georgia Oil & Gas 1 >> 

More News

Related Links

Gulf Oil and Gas
Copyright 2019 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.