Beacon Energy Share Discussion Threads

[gist328] 30/10/2024 12:22

Shoot BCE in the back of the head and put it out of its misery

[bri15] 21/10/2024 11:38

I'm in,well worth taking a punt at this level.

[juliemara] 18/10/2024 13:32

I'm out, something's better than nothing!

[gist328] 15/10/2024 08:33

May not be a choice, the usual dumpers are at it again.Abandoning a sinking ship, if a oil giant couldn't be successful in producing at this site why would a minnow

[vatnabrekk] 14/10/2024 08:54

Surely we don’t want to go through all that again!!

[apotheki] 14/10/2024 08:35

So worst case scenario they could let their subsidiary Rhein Petroleum go in to liquidation whilst retaining the parent company AIM listed Beacon Energy as an AIM shell ready to go again on a new business that is looking for a listing.

[apotheki] 14/10/2024 08:33

Under the base case forecast, the Group will have sufficient financial headroom to meet forecast cash requirements for the 12 months from the date of approval of these consolidated financial statements. However, in the downside scenarios, in the absence of any mitigating actions, the Group may have insufficient funds to meet its forecast cash requirements. Potential mitigants include deferral and/or reduction of expenditure and raising additional funding. It should be noted that Beacon Energy has not provided any parent company guarantees related to the debts of Rhein Petroleum.

[blakesmith] 14/10/2024 06:49

Awful results

[apotheki] 14/10/2024 06:40

CHAIRMAN'S REPORT



Dear fellow shareholders,

I am pleased to present the following statement in support of the annual results of Beacon Energy plc (the "Company") for the year ended 31 December 2023.

During the year and subsequent period, the Board has worked tirelessly to deliver the Company's strategy which is to pursue the acquisition of value enhancing opportunities to develop and grow a self-funding upstream oil & gas company.

In April 2023, the Company was pleased to complete the acquisition of Rhein Petroleum GmbH ("Rhein Petroleum"), together with a £6 million fundraise and simultaneous readmission to AIM following a period of suspension associated with the reverse take-over (the "Transaction"). Rhein Petroleum is an established full cycle E&P company with a portfolio of largely operated production, development, appraisal and exploration assets located onshore Germany. This acquisition represented a transformational transaction for shareholders, which was fully aligned with Beacon Energy's growth strategy to focus on assets with proven resources and therefore tangible value.

Immediately upon completion of the Transaction, the Company secured a drilling rig to drill the Schwarzbach-2 development well on the Erfelden field. Drilling operations commenced on 19 June 2023. Notwithstanding operational issues encountered during drilling, the Schwarzbach-2(2.) ("SCHB-2(2.)") well reached total drill depth of 2,255m metres (1,717 metres True Vertical Depth) on 13 August 2023 with electric wireline well logging completed shortly thereafter.

The wireline logs obtained confirmed that the SCHB-2(2.) well encountered a 34-metre gross interval containing 28 metres of oil-bearing net reservoirs in the Pechelbronner-Schichten ("PBS") sandstones within the Stockstadt Mitte segment of the Erfelden field. These oil-bearing reservoirs were encountered approximately 25 metres higher and 10 metres thicker than prognosis, with porosities averaging 18% in the Lower PBS and 21% in the Upper PBS, with no water-bearing sands in the 42m hydrocarbon column.

As a result of the encouraging electronic log results, the Company completed an over-subscribed £4.3 million fundraise in September 2023 and subsequently, on 13 November 2023, the Company updated its assessment of potential reserves in the central part of the Erfelden field to 7.2 mmbbls (Best Estimate Case), with range of 4.7 to 10.2 mmbbls (Low Case to High Case). For comparison, the Competent Person's Report for the Erfelden field, published at the time of the Transaction, outlined a 2P reserve of 3.8 mmbbls.

Following installation of a rod pump, production from the well stabilised at a disappointing 40 barrels of oil per day ("bopd") - materially below expectations given the results of the electronic logs. The low production rate indicated that the reservoir near the wellbore had been invaded with drilling fluids, restricting flow rates.

In January 2024, the Company undertook a sand jetting operation, an industry-standard stimulation technique, aimed at increasing production from the SCHB-2(2.) well. While the sand jetting operation was unsuccessful, it represented a low-cost opportunity which could be implemented within weeks, and which had the potential to fully clean the well and deliver expected production. In addition, the data obtained demonstrated that the reservoir remains at original pressure of approximately 172 bar, consistent with the neighbouring Stockstadt field prior to production, and that the well has a significant "skin" or "damage" effect which impeded flow.

In February 2024, the Company completed a £2.6 million fundraise which would allow the Company to undertake a side-track operation with the aim of by-passing the invaded drilling fluids and damaged section of the reservoir. A rig, all long-lead items and the relevant oil field service contractors were secured.

The SCHB-2 side-track commenced in late April 2024. The side-track 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 side-track 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. Following demobilisation of the rig, the SCHB-2 well was reconnected to the Schwarzbach production facilities on 12 June 2024 to restart production, allow the well to clean-up, and allow a long-term flow rate to be established.

From June through to August 2024, the SCHB-2 well intermittently produced a combination of oil, gas and water using an ESP. The continued production of water (which is likely to be completion fluid, spent acid and losses from the side-track and original well bore) combined with pressure data suggests the well continued to clean-up, albeit at a slow rate.

Following extensive analysis by our technical team, the most likely explanation for the poor performance is a combination of residual reservoir damage in the upper section of the Upper PBS reservoir (where the sidetrack remains close to the original well bore which was invaded with drilling fluids) and poor permeability in this particular area of the Erfelden field in the Lower PBS reservoir.

Following the extended period of production during the summer, it became clear that the intermittent production reflected the fact that the ESP was running at the (lower) limit of its operating range. As a result, in early September 2024, a rod pump was installed with the aim of achieving a stabilised flow rate. At the time of writing, a stabilised rate of 50-55 bopd has been achieved from the SCHB-2 well. As a result of this low cost installation, we have marginally increased production while materially increasing the reliability of stable production volumes.

Outlook

The Company has undertaken a thorough review of the Rhein Petroleum cost base in order to maximise cash generation. Cost reduction measures are actively being pursued and these initiatives are anticipated to reduce Rhein Petroleum's annual cash operating costs from approximately €2.5 million currently to approximately €1.3 million. Such cost reduction measures are likely to be fully implemented by year end 2024.

As part of the Company's broader cost reduction measures, the directors continue to defer or receive a significant proportion of their fees in shares. In addition, Larry Bottomley and Stephen Whyte agreed to leave the Company's board, effective 1 July 2024. We take this opportunity to thank Larry and Steve for their valuable contributions to Board deliberations. Our thanks go especially to Larry for stepping into the CEO role in early 2022 and leading the Company through the reverse takeover and subsequent re-listing of the Company in 2023. As a result, the board now comprises Mark Rollins (Non-executive Chairman), Stewart MacDonald (CEO), Ross Warner (Independent Non-executive Director) and Leo Koot (Non-executive Director).

In order to provide more optionality for the Company as it seeks to establish the optimum route forward, the Company engaged with approximately 90% of the creditors of Rhein Petroleum with the aim of agreeing a reduction in liabilities and a deferred payment plan based on future cash flow generation of Rhein Petroleum. Unfortunately, agreement with creditors could not be reached and as a result the Company took the decision to place Rhein Petroleum into a formal process with its creditors (akin to US Chapter 11 bankruptcy protection), as announced on 27 August 2024. This three-month process was expected to conclude in early October although it has been extended by the creditor's representative who is exploring options to maximise recovery of value for creditors. As part of this process, the Company has put forward a robust and fully financed restructuring plan aimed at maximising cash generation from the Rhein Petroleum business and delivering value for creditors. A resolution of the creditor process is expected during Q4 2024.

In summary, it has been a frustrating series of events given the operational challenges encountered during the drill and subsequent flow rates from SCHB-2. As a Board, we remain convinced that Erfelden is a material and potentially highly valuable onshore oil discovery with Best Estimated recoverable reserves of 7.2 mmbbl. On behalf of our shareholders, we will continue to assess all options to realise maximum value from our assets. We thank shareholders for their support and patience through this period and look forward to providing updates on our progress as we move through the rest of the year.

Mark Rollins

Non-Executive Chairman

11 October 2024

[apotheki] 14/10/2024 06:39

Final Results and Publication of Annual Report

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"), announces its Final Results for the period ended 31 December 2023.

Copies of the Annual Report and Accounts have today been posted to shareholders and made available on the Company's website at: hxxps://beaconenergyplc.com/

Mark Rollins, Non-Executive Chairman of Beacon Energy, commented:

"During the year and subsequent period, the Board has worked tirelessly to deliver the Company's strategy of pursuing value-enhancing opportunities to develop and grow a self-funding upstream oil & gas company. Following the completion of the transformational acquisition of Rhein Petroleum in April 2023, which was aligned with our growth strategy, we faced several operational challenges during drilling and experienced varying flow rates from the Schwarzbach-2 well.

Even with the challenges we have experienced, the Board remains convinced that Erfelden is a material and potentially highly valuable onshore oil discovery, with best estimated recoverable reserves of 7.2 million barrels.

On behalf of our shareholders, we will continue to assess all options to realize maximum value from our assets. We thank our shareholders for their support and patience during this time and look forward to providing updates on our progress as we move through the rest of the year."

[gist328] 12/10/2024 15:25

The owners don't care, they still profit from what little oil drizzles out and get their salaries

[vipdibas] 11/10/2024 15:01

Why still suspended!!

[steephill cove] 09/10/2024 13:19

Upon relisting, I expect fairly soon after, a positive BCE RNS about the well clean up & improved flow rates ✅

Post this, I expect a BCE share consolidation to increase the share price & improve market perception 📈

[vipdibas] 09/10/2024 12:22

Positive news will send this share to moon

[steephill cove] 09/10/2024 08:20

BCE 2023 Annual Report and H1 2024 Interim Results during the week commencing 7 October 2024.

Relisting by Friday 11/10 ✅📈

[juliemara] 03/10/2024 07:09

Ominously missing the word "pleased" 🤔

[apotheki] 03/10/2024 06:30

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 update in relation to its financial accounts.

The Company expects to be in a position to publish its 2023 Annual Report and H1 2024 Interim Results during the week commencing 7 October 2024.

As a result, trading in the Company's ordinary shares on AIM will continue to be suspended. It is expected that suspension from trading will be lifted with the publication of the Annual Report and H1 2024 Interim Results.

[steephill cove] 27/8/2024 07:32

RNS Number : 6897BBeacon Energy PLC27 August 2024 27 August 2024Beacon Energy plc("Beacon Energy" or the "Company")Corporate and 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 corporate and operational update.· It has become clear that the electrical submersible pump ("ESP") is running at the lower limit of its operating range - approximately 50 bopd - and as such the SCHB-2 well has not yet been able to achieve a stabilised flow rate· Plans are well advanced to re-install a rod pump (at a cost of approximately €75,000) in the coming weeks which is expected to allow a stabilised flow rate to be achieved· In order to maximise the cash generation of the Rhein Petroleum business, cost reduction measures are actively being pursued· The Company has entered into a formal three-month process with the creditors of Rhein Petroleum, with the aim of agreeing a reduction in liabilities and a deferred payment plan based on future cash flow generation· The Company is in the process of putting forward a restructuring plan to creditors aimed at maximising cash generation from the Rhein Petroleum businessThe Company has undertaken a thorough review of the Rhein Petroleum cost base in order to maximise cash generation. Cost reduction measures are actively being pursued and these initiatives are anticipated to reduce Rhein Petroleum's annual cash operating costs from approximately €2.5 million currently to approximately €1.3 million. Such cost reduction measures are likely to be fully implemented by year end 2024.In order to provide more optionality for the Company as it seeks to establish the optimum route forward, the Company engaged with approximately 90% of the creditors of Rhein Petroleum with the aim of agreeing a reduction in liabilities and a deferred payment plan based on future cash flow generation of Rhein Petroleum. Unfortunately, an agreement with all creditors could not be reached and as a result the Company took the decision to place Rhein Petroleum into a formal process with its creditors (akin to US Chapter 11 bankruptcy protection). This three-month process is expected to conclude in early October. The Company is in the process of putting forward a restructuring plan aimed at stabilising production, reducing costs and maximising cash generation from the Rhein Petroleum business.As previously disclosed, as a result of the current uncertainties outlined above and the uncertain impact on assets impairment and going concern in the accounts, the Company was not in a position to finalise and publish its Annual Report for the year to 31 December 2023 ("Annual Report") by 30 June 2024, as stipulated by Rule 19 of the AIM Rules for Companies (the "AIM Rules").Given the ongoing production instability and formal creditor process, it is taking longer than originally anticipated to finalise the Annual Report. Whilst the audit is now substantially complete, and the Company continues to target the publication of the Annual Report as soon as practically possible, this is now likely to be during September 2024. As a result, trading in the Company's ordinary shares on AIM will continue to be suspended. It is expected that suspension from trading will be lifted with the publication of the Annual Report.Stewart MacDonald, CEO of the Company, said:"The SCHB-2 well continues to perform intermittently. It has become clear that the ESP was operating at the lower end of its capacity range and as such a rod pump is viewed as the best way to stabilise production - this should be achievable in the coming weeks. The Rhein Petroleum creditor process, which is akin to US Chapter 11, continues and we are confident (but cannot guarantee) a satisfactory outcome will be reached - likely in early October. The operating and creditor uncertainties experienced complicate the completion of the Rhein Petroleum audit, its first year as part of a listed group. Nonetheless good progress has been made and we are confident of publication during September 2024. Our focus is on stabilising production, implementing cost reduction measures and maximising cash generation for the benefit of all stakeholders." Enquiries:Beacon Energy plcStewart MacDonald (CEO)[phone]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 [phone] Tennyson Securities Limited (Broker)Peter Krens / Ed Haig-Thomas [phone]

[apotheki] 27/8/2024 07:12

Stewart MacDonald, CEO of the Company, said:

"The SCHB-2 well continues to perform intermittently. It has become clear that the ESP was operating at the lower end of its capacity range and as such a rod pump is viewed as the best way to stabilise production - this should be achievable in the coming weeks.

The Rhein Petroleum creditor process, which is akin to US Chapter 11, continues and we are confident (but cannot guarantee) a satisfactory outcome will be reached - likely in early October.

The operating and creditor uncertainties experienced complicate the completion of the Rhein Petroleum audit, its first year as part of a listed group. Nonetheless good progress has been made and we are confident of publication during September 2024.

Our focus is on stabilising production, implementing cost reduction measures and maximising cash generation for the benefit of all stakeholders."

[steephill cove] 27/8/2024 06:21

RNS Number : 6897BBeacon Energy PLC27 August 2024 27 August 2024Beacon Energy plc("Beacon Energy" or the "Company")Corporate and 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 corporate and operational update.· It has become clear that the electrical submersible pump ("ESP") is running at the lower limit of its operating range - approximately 50 bopd - and as such the SCHB-2 well has not yet been able to achieve a stabilised flow rate· Plans are well advanced to re-install a rod pump (at a cost of approximately €75,000) in the coming weeks which is expected to allow a stabilised flow rate to be achieved· In order to maximise the cash generation of the Rhein Petroleum business, cost reduction measures are actively being pursued· The Company has entered into a formal three-month process with the creditors of Rhein Petroleum, with the aim of agreeing a reduction in liabilities and a deferred payment plan based on future cash flow generation· The Company is in the process of putting forward a restructuring plan to creditors aimed at maximising cash generation from the Rhein Petroleum businessThe Company has undertaken a thorough review of the Rhein Petroleum cost base in order to maximise cash generation. Cost reduction measures are actively being pursued and these initiatives are anticipated to reduce Rhein Petroleum's annual cash operating costs from approximately €2.5 million currently to approximately €1.3 million. Such cost reduction measures are likely to be fully implemented by year end 2024.In order to provide more optionality for the Company as it seeks to establish the optimum route forward, the Company engaged with approximately 90% of the creditors of Rhein Petroleum with the aim of agreeing a reduction in liabilities and a deferred payment plan based on future cash flow generation of Rhein Petroleum. Unfortunately, an agreement with all creditors could not be reached and as a result the Company took the decision to place Rhein Petroleum into a formal process with its creditors (akin to US Chapter 11 bankruptcy protection). This three-month process is expected to conclude in early October. The Company is in the process of putting forward a restructuring plan aimed at stabilising production, reducing costs and maximising cash generation from the Rhein Petroleum business.As previously disclosed, as a result of the current uncertainties outlined above and the uncertain impact on assets impairment and going concern in the accounts, the Company was not in a position to finalise and publish its Annual Report for the year to 31 December 2023 ("Annual Report") by 30 June 2024, as stipulated by Rule 19 of the AIM Rules for Companies (the "AIM Rules").Given the ongoing production instability and formal creditor process, it is taking longer than originally anticipated to finalise the Annual Report. Whilst the audit is now substantially complete, and the Company continues to target the publication of the Annual Report as soon as practically possible, this is now likely to be during September 2024. As a result, trading in the Company's ordinary shares on AIM will continue to be suspended. It is expected that suspension from trading will be lifted with the publication of the Annual Report.Stewart MacDonald, CEO of the Company, said:"The SCHB-2 well continues to perform intermittently. It has become clear that the ESP was operating at the lower end of its capacity range and as such a rod pump is viewed as the best way to stabilise production - this should be achievable in the coming weeks. The Rhein Petroleum creditor process, which is akin to US Chapter 11, continues and we are confident (but cannot guarantee) a satisfactory outcome will be reached - likely in early October. The operating and creditor uncertainties experienced complicate the completion of the Rhein Petroleum audit, its first year as part of a listed group. Nonetheless good progress has been made and we are confident of publication during September 2024. Our focus is on stabilising production, implementing cost reduction measures and maximising cash generation for the benefit of all stakeholders." Enquiries:Beacon Energy plcStewart MacDonald (CEO)[phone]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 [phone] Tennyson Securities Limited (Broker)Peter Krens / Ed Haig-Thomas [phone]

[gist328] 20/8/2024 12:16

BCE should get Chinese drillers, they'll do the job super fast rather than the mates rates which is ridiculously amateurish

[currypasty] 14/8/2024 13:53

practically possible which is likely to be during the first half of August 2024.