REG - Beacon Energy PLC - Erfelden Operational Update

Beacon EnergyAnnouncement

03/06/2024 07:00

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RNS Number : 7511Q  Beacon Energy PLC  03 June 2024

3 June 2024

Beacon Energy plc

("Beacon Energy" or the "Company")

Erfelden Operational Update

 

Beacon Energy (AIM:BCE), the full-cycle oil and gas company with a portfolio
of onshore German assets through its wholly-owned subsidiary, Rhein Petroleum
GmbH ("Rhein Petroleum"), provides the following operational update in
relation to the Schwarzbach 2(3.) sidetrack well ("SCHB-2 sidetrack") in the
Erfelden field.

 

·    The SCHB-2 sidetrack kicked off from the original well bore at a
depth of 2,145 metres and extended for an additional 85 metres in length

·    In the Lower PBS, the SCHB-2 sidetrack is estimated to be
approximately 9 metres from the original wellbore

·    Following insertion of the production liner, an electrical
submersible pump ("ESP") was successfully installed and tested

·    Since deployment, the ESP has produced intermittently with frequent
stalling - a stabilised rate has therefore not yet been established

·    However, based on bottom hole pressures and flow rates observed,
initial response from the reservoir appears to be poor

·    The well will now be temporarily shut-in to allow the rig to be
demobilised

·    During this time, pressure build-up data will be obtained to better
inform our understanding of the reservoir response

·    Once the rig has left the drilling site, remedial actions will be
undertaken on the ESP and the well will be reconnected to the Schwarzbach
facility to allow well clean-up and a long-term flow rate to be established.

 

The Company will provide an update once a stabilised flow rate has been
achieved.

Stewart MacDonald, Incoming CEO of the Company, said:

 "Having safely drilled the SCHB-2 sidetrack and installed the ESP, it is
disappointing a sustained flow rate has not yet been achieved. Whilst pressure
build up data, to be obtained in the coming days, will provide clarity, the
initial response from the reservoir appears disappointing. Following
reconnection to the production facility, a long-term stabilised flow rate
should be established. We remain convinced that Erfelden is a material and
potentially highly valuable onshore oil discovery with Best Estimated
recoverable reserves of 7.2mmbbl.  The Company will now consider its options
to maximise the value of the resource we have discovered."

Enquiries:

 Beacon Energy plc                                          +44 (0)20 7466 5000

 Stewart MacDonald (CEO)
 Strand Hanson Limited (Financial and Nominated Adviser)    +44 (0)20 7409 3494

 Rory Murphy / James Bellman
 Buchanan (Public Relations)                                +44 (0)20 7466 5000

 Ben Romney / Barry Archer / George Pope
 Tennyson Securities Limited (Broker)                            +44 (0)20 7186 9030

 Peter Krens / Ed Haig-Thomas

 

For further information, please visit  www.beaconenergyplc.com
(http://www.beaconenergyplc.com/)   and @BeaconEnergyPlc on X (formally
Twitter)

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form:  https://www.beaconenergyplc.com/media-centre/news/#alerts
(https://www.beaconenergyplc.com/media-centre/news/#alerts)

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue
of the European Union (Withdrawal) Act 2018.

 

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