16 Billion Cubic Meter Gas Field Confirmed in Georgia
By Natalia Kochiashvili
Tuesday, July 12, 2022
The head of the State Oil and Gas Agency of Georgia, Giorgi Tatishvili, announced on the air of the ‘Business Course’ program that the existence of a natural gas deposit of 16 billion cubic meters in the country was confirmed.
The existance of natural gas resource near Tbilisi was confirmed throught bore-welling carried out by Schlumberger, a technology company that partners with customers to access energy. Currently, the operator of the license is the company ‘Block Energy’, whose shares are traded on the London Stock Exchange. The company's main field of activity is oil and gas exploration in Georgia. The company owns the right to extract resources from Blocks IX and XI (B).
According to head of the State Oil and Gas Agency, the license block requires horizontal drilling, and under the conditions of its utilization, the country will be able to fully meet the demand for 8 years of natural gas.
“Block Energy is one of our long-range projects, 16 billion cubic meters of reserves have been confirmed in the well drilled by Schlumberger, in the surrounding area. This amound is equal to the consumption of Georgia for 8 years.”
Block Energy will get back to this project with a confirmed plan by the end of the year or early next year. Horizontal drilling is to be done here to cover more rock layers and procure more commercial gas. At the same time, Block Energy is also doing horizontal drilling in old wells, which has led to an 80% increase in retrieving gas. Block Energy extracts 30 million cubic meters of gas, which is equal to the consumption of, for example, Telavi or Sagarejo. After mastering this well, Oil and Gas Agency expects these figures to be much more significant and impressive.
According to the financial report, in 2021 ‘Block Energy’ had an income of $6.1 million and a loss of $4.8 million.
The market capitalization of the company, or the total value of its shares, is GBP9.4 million. One share of the company costs GBP 1.35.
