LONDON (ShareCast) - (Sharecast News) - Georgia-focussed exploration and production company Block Energy provided a progress report on its early production facility on the West Rustavi oil and gas field on Monday.
The AIM-traded firm said construction of its gathering line between the facility and the WR-38Z well had been completed on time and on budget.

It said the pipeline had been successfully pressure tested at 6,600 kPa, with no failures.

The facility was now ready to receive gas from wells WR-16aZ and WR-38Z, which would remain shut-in to conserve gas until the gas sales line had been constructed, and gas sales could begin.

The Georgian independent gas company Bago, which had agreed to purchase the gas from the facility, had received all required permits and was continuing with the construction of its gas sales line, to recover time lost as a result of the Covid-19 pandemic.

Once the sales line was complete, oil production from West Rustavi would restart, and first sales of associated gas would be achieved.

"I am extremely pleased with the continued progress we have made with our early production facility at West Rustavi, despite the operational challenges that Covid-19 has presented," said chief executive officer Paul Haywood.

"Safely completing the assembly of the facility and construction of the gathering line on time and budget is a testament to the relentless efforts applied by the team to deliver this important milestone.

"Focus is now on supporting Bago to ensure the safe and efficient installation of the sales pipeline, which will allow gas sales to commence."

At 1406 GMT, shares in Block Energy were up 25.25% at 3.82p.

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