Block Energy Plc announced that sidetracking operations from the existing 16a wellbore ('16a' or 'the Well') on the West Rustavi field (West Rustavi) commenced on January 23, 2019. 16a is part of an initial two-well horizontal sidetrack drilling programme at West Rustavi targeting combined gross production of 650 bopd from the proven Middle Eocene formation by the end of H1 2019. A whipstock sidetrack drilling device has been lowered in the Well by the ZJ40 drilling rig. The next operation will be to orient the tool in the right direction and then cut a hole or window in the side of the casing from which the drilling assembly can exit the existing wellbore and drill the build and 1,600 foot horizontal section into the reservoir. Production testing is forecast to start immediately after drilling operations are complete and the drilling rig has been moved off the wellsite. The target reservoir is at a depth of approximately 2,100m which the Company estimates to have had an original oil column up to 600 feet thick. The sidetrack drilling of 16a follows a successful oil test in December 2018 which confirmed the Well lies in an active hydrocarbon system and that the previously producing Middle Eocene reservoir still contains reserves and remains pressurised. During the test, more than 200 barrels of oil were recovered from 16a during a 10 hour flow period and an additional 300 barrels of light oil flowed to a temporary wellsite production facility over the following days. Block currently holds a 25% working interest in West Rustavi, which has an estimated 38 MMbbls of gross contingent resources ('2C') of oil (Source: CPR completed by Gustavson Associates, 1 January 2018 ("CPR")). As part of an agreed earn-in, upon completion of the two-well sidetrack programme, Block's interest in West Rustavi increases to 75%. Four other wells have been identified at West Rustavi offering similar opportunities for re-entry and sidetracking. West Rustavi also holds gas discoveries which lie on trend with the same play being targeted by Schlumberger in neighbouring fields. The Company plans to re-test the gas potential of the West Rustavi licence in 2019 by re-entering up to two wells that previously flowed gas. According to the well passport the Company received on acquiring its interest in the field, one of the discovery wells flowed at rates up to 29,000 m3/d when originally tested in 1988. West Rustavi is one of three licences Block holds in Georgia, the others being a 100% interest in the producing Norio field, which has gross proven ('2P') oil reserves of 1.631 million barrels, and where a workover and sidetrack programme is underway targeting 250 bopd by H1 2019; and a 90% interest in the Satskhenisi field, which has estimated 28 MMbbls of gross 2C contingent resources.