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
Stewart
MacDonald (CEO)
|
+44 (0)20
7466 5000
|
|
Strand Hanson Limited (Financial and Nominated
Adviser)
Rory Murphy / James
Bellman
|
+44 (0)20
7409 3494
|
|
Buchanan (Public Relations)
Ben Romney / Barry
Archer / George Pope
|
+44 (0)20
7466 5000
|
|
Tennyson Securities Limited (Broker)
Peter Krens / Ed
Haig-Thomas
|
+44 (0)20 7186
9030
|
For further information, please
visit www.beaconenergyplc.com
and @BeaconEnergyPlc on X (formally Twitter)
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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.