The projects have a blend of production as well as development and exploration potential.

The key strengths include:

  • Significant Resource and Reserve base
  • Speedy path to increased production,
  • Low cost services available in close proximity to all assets (Service Company owned by major Block shareholder)
  • Production and transportation infrastructure
  • Operating & oil sale marketing structure
  • Significant understanding of legacy and present data
  • Immediate neighbour (N & S) to major service co / asset owner Schlumberger
  • High potential of Block establishing JV with strategic partner
  • Block is partnered with Georgian Oil and Gas one of the largest licence owners and a highly respected oil company in country
Map of the Republic of  Georgia and the Area of Interest
Map of Oil Field

Norio Onshore Oil Field

Low cost production & development with established facilities and marketing process

  • Norio is 35km from the centre of Tbilisi, requiring low capex recompletions of existing wells and new horizontal wells, to significantly increase existing production
  • Storage facilities are on site, well maintained and in use, though currently utilizing a fraction of capacity
  • 1.9mbbl of light sweet crude oil sold/collected at the wellhead at a price of Brent minus transportation costs ~USD 10
    • Norio PSC until 2026 with optional 5 year renewal
    • 100% recovery of operating cost before any sharing with government
    • 100% cost recovery allowance, from 50% of oil
    • 50% of profit oil until costs recovered, 40% thereafter
    • No taxes or discovery bonus applicable
    • No minimum work programme to fulfil

Reserves and Future Cash Flow Projections, Norio

 
Gross Oil Reserves, MBbl
Net Oil Reserves, MBbl
Net Cash Flow, MM$
NPV10, MM$
Total
899.2
1,630.9
2,533.3
681.8
1,107.8
1,496.9
21.2
45.6
67.4
11.6
29.5
45.1
Reserve Classification
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
Producing
28.1
32.7
37.2
16.4
21.7
28.5
0.2
0.2
0.4
0.1
0.2
0.3
Developed Non-Producing
65.8
93.0
167.5
61.6
80.9
133.5
1.0
2.3
5.7
0.6
1.5
3.8
Undeveloped
805.2
1,505.3
2,328.6
603.5
1,005.2
1,334.9
20.0
43.1
61.3
10.9
27.8
41.0
For 100% Working Interest. Net is net of government share. (MBbl = thousand barrels of oil; MM$ = millions of US$)

 

Gross Unrisked Contingent Resource Estimates, Norio

Contingent Oil/Condensate Resouces, MMBBl
Contingent Associated/Free Gas Resouces, Bcf
Risk Factor
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
3.1
7.2
13.9
0.8
1.9
3.7
75%
(MMBbl = million barrels of oil; BCF = billion cubic feet)

Satskhenisi

Discovered in 1956

  • Cumulative production 500,000 BBL from vertical wells drilled 1956-1964
  • Production from the Maikop and shallow Sarmatian lithologies
  • Currently producing ~6 bopd
  • Maikop is believed to have considerable unconventional potential
  • Similar geological setting and formations to Norio
  • learnings from one permit apply to the other
  • 2D seismic acquired over last 20 years
  • reprocessed in 2014
  • Well depths 600-1500m

Reserves and Future Cash Flow Projections, Satskhenisi

 
Gross Oil Reserves, MBbl
Net Oil Reserves, MBbl
Net Cash Flow, MM$
NPV10, MM$
Total
11.6
13.8
17.3
7.9
9.6
12.7
0.22
0.29
0.42
0.18
0.23
0.32
Reserve Classification
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
Producing
4.4
4.4
4.4
2.3
2.3
2.4
0.03
0.03
0.03
0.03
0.030.03
Developed Non-Producing
7.2
9.4
12.9
5.6
7.3
10.3
0.19
0.26
0.39
0.16
0.2
0.29
Undeveloped
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
For 90% Working Interest. Net is net of government share and partner’s interests. (MBbl = thousand barrels of oil; MM$ = millions of US$)

 

Gross Unrisked Contingent Resource Estimates, Satskhenisi

Contingent Oil/Condensate Resouces, MMBBl
Contingent Associated/Free Gas Resouces, Bcf
Risk Factor
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
16.4
27.8
43.7
9.3
16.4
26.5
75%
(MMBbl = million barrels of oil; BCF = billion cubic feet)

West Rustavi Onshore Oil & Gas Field

Development Stage Oil and Gas field, Block Energy interest currently 5% with option to move to 75%

  • 36.5 kilometre squared with multiple wells that have tested oil & gas from multiple geological horizons
    • New PSC, valid until 2042 with optional 5 year renewal
    • Active neighbours Schlumberger & MND
    • Industrial gas market within <10km at Rustavi Industrial Complex
    • No taxes or discovery bonus applicable

Reserves and Future Cash Flow Projections, West Rustavi

 
Gross Oil Reserves, MBbl
Net Oil Reserves, MBbl
Net Cash Flow, MM$
NPV10, MM$
Total
470.8
906.8
1,606.2
210.7
347.8
565.2
6.1
13.6
25.6
4.1
9.6
18.4
Reserve Classification
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
Producing
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Developed Non-Producing
470.8
906.8
1,606.2
210.7
347.8
565.2
6.1
13.6
25.6
4.1
9.6
18.4
Undeveloped
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Based on completion of farmin for 75% Working Interest. Net is net of government share and partner’s interests. (MBbl = thousand barrels of oil; MM$ = millions of US$)

 

Gross Unrisked Contingent Resource Estimates, West Rustavi

Contingent Oil/Condensate Resouces, MMBBl
Contingent Associated/Free Gas Resouces, Bcf
Risk Factor
P90
1P
P50
2P
P10
3P
P90
1P
P50
2P
P10
3P
18.6
37.9
69.3
314
608
1,000
75%
(MMBbl = million barrels of oil; BCF = billion cubic feet)

Recent Posts