8th Jul 2019 14:25
(Alliance News) - Block Energy PLC has secured workover machinery for its 2019/2020 drilling programmes, the Georgia-focused oil and gas exploration company said Monday.
The company agreed deals with contractor JSC Norio Oil Co and drilling equipment owner Georgia Oil & Gas Ltd for work on the West Rustavi field in the south east of Georgia.
The company will pay USD750,000 for one year of exclusive use of the ZJ40 rig, the same rig the used to drill the 16aZ well, as well as having access to an A50 workover rig and an "extensive inventory or drilling equipment."
The London-listed company will also pay up to USD100,000 for the usage of a high resolution flow meter provided by Georgia Oil, allowing the company to identify any natural fractures during drilling operations.
Chief Executive Paul Haywood said: "We are delighted to enter into new contracts for rigs and drilling equipment with the same Georgian companies from which we hired the equipment last year, again on highly favourable terms."
"The agreements give us access to all of the rigs and associated equipment we need to pursue our programme without having to negotiate with individual suppliers or mobilise from abroad, saving the company significant time and cost."
In May, the company raised GBP12 million via share placing to fund its work in West Rustavi. Block Energy issued 109.1 million shares at 11 pence each.
Shares in Block Energy were down 4.9% at 13.32p in London on Monday afternoon.
Related Shares:
Block Energy P.