Beacon Energy Share Discussion Threads

[juliemara] 05/12/2024 09:45

Can't get a price to buy on HL but can to sell. A good sign.

Edit: But just more MM BS as it turned out!

[bspgamer] 04/12/2024 22:13

Wow we have been ripped off

[apotheki] 28/11/2024 08:15

Corporate 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 update.

· Reservoir performance from the SCHB-2 well continues to disappoint with current production of approximately 45 bopd, a decline of approximately 20% since the installation of a rod pump in early September 2024

· Notwithstanding the material cost reduction initiatives previously disclosed, production at these levels places doubt on the future financial viability of Rhein Petroleum, absent material capital investment

· As previously disclosed, Beacon Energy had put forward a fully financed restructuring plan to the Rhein Petroleum creditors aimed at maximising cash generation from the Rhein Petroleum business and delivering value for creditors

· Given the production declines seen at the SCHB-2 well, Beacon Energy has been unable to put forward a restructuring offer which is agreeable to the Rhein Petroleum creditors

· The Company has now been informed by Rhein Petroleum's creditor representative that it has agreed to sell certain assets of Rhein Petroleum to a third party (with completion expected in early January 2025), following which Rhein Petroleum would be expected to be liquidated (the "Proposed Liquidation")

· As previously disclosed, Beacon Energy has not provided any parent company guarantees related to the debts of Rhein Petroleum (approximately €7.5 million)

· As a consequence of the Proposed Liquidation of Rhein Petroleum, Beacon Energy is expected to become an AIM Rule 15 cash shell in early January 2025

· As a result of material cost reduction initiatives previously announced and assuming the Proposed Liquidation proceeds as expected, the Board believes it has sufficient liquidity to progress new business development through to end Q2 2025

· The Company's strategy continues to be the creation a self-funding oil & gas production company taking advantage of growth opportunities resulting from industry players as they reshape their portfolios

· By concentrating on cash-generative assets and capitalising on the current deal pipeline, the Company aims to lever the time and cost expended in assessing potential new ventures over the last year built on the Board's extensive industry relationships. The opportunities the Company is assessing across Europe, Africa and the Far East are suitable for debt or vendor financing, and the Company will continue its efforts to mature these options

· The Board is presently in discussions on a range of opportunities and is confident that it will enter into an agreement on at least one opportunity before mid-year 2025

Stewart MacDonald, CEO of the Company, said:

"The performance of the SCHB-2 well continues to disappoint to the extent that it calls into question the ongoing financial viability of Rhein Petroleum. We are disappointed that agreement could not be reached with the creditors of Rhein Petroleum and that their preferred course of action is a sale of certain assets and the ultimate liquidation. Whilst Erfelden remains a potentially material oil discovery, very significant capital will be required in order to deliver its potential.

The ringfencing of Rhein Petroleum's liabilities ensures Beacon has no further financial exposure to the subsidiary and can utilise remaining cash to progress the compelling value accretive opportunities currently being assessed by our experienced Board.

"Beacon Energy has an exciting set of opportunities in the business development pipeline and a motivated and high-quality Board focused on growing the Company and creating long term sustainable value for shareholders. Reducing the cost base leaves the Company with sufficient cash, and importantly allows more time, to assess and progress this pipeline. We will provide further updates to the market as appropriate."

[letsgo5] 27/11/2024 16:55

Happens when. Placing is being dumped

[vatnabrekk] 27/11/2024 16:25

I'll say WOW when if gets to 0.8p, then I'll B/E!

[vipdibas] 27/11/2024 16:23

I said something going on some great news coming out don't miss the boat

[vipdibas] 27/11/2024 15:51

It's not wow at the moment but it's building up

[letsgo5] 27/11/2024 15:49

What's the mcap here

[vipdibas] 27/11/2024 15:48

All the way up

[vipdibas] 27/11/2024 15:44

Something going on

[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!!