LONDON (ShareCast) - (Sharecast News) - Georgia-focussed oil and gas company Block Energy lauded its "excellent" initial production results from well-44 on its Norio Field, on Monday.
The AIM traded company's well flowed at a rate of 45 barrels per day over a five-hour period, making for "highly encouraging" progress towards a targeted 25-fold increase in production at the field, with 250 bopd aimed for by the end of the first quarter.

Paul Haywood, chief executive of Block Energy, said: "We're delighted to announce such an excellent initial recovery at Norio as we work towards our target of producing 250 bopd from the field by the end of H1 2019. If production results continue to be positive we look forward to making increasingly effective use of the specialist perforation tool at Norio 44 and three further wells."

In addition to the Norio programme, the company is preparing to drill two horizontal sidetracks at wells 16a and 38 on its West Rustavi field, also in Georgia, targeting a combined gross production of 650 barrels of oil per day by the end of the first quarter of 2019.

The company is fully-funded to undertake the work programmes at Norio and West Rustavi and subsequently expects to generate £13m of revenue per year, based on present oil prices, outstripping its current £7m market valuation.

"We look forward to providing further updates, as we press ahead with our strategy to build a leading independent oil and gas company in Georgia, and in the process generate significant value for our shareholders," said Haywood.

Block Energy's shares were up 3.58% at 3.47p at 1613 GMT.

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