Beacon Energy Share Discussion Threads

[euclid5] 13/11/2023 10:45

For a rough estimate, however, we can use the CPR NPV10 unit valuations in the previous high case (which looks broadly consistent with the new, best estimate case) of €18.3/bbl and apply it to the updated reserve numbers.

This suggests an implied NAV of US$141.6m in the best estimate case, and just under US$200m in the high case.

[sos100] 13/11/2023 09:34

those that took part in placing still dumping imo

[vatnabrekk] 13/11/2023 08:48

The sell-on-new mob seem to have rolled up!

[apotheki] 13/11/2023 08:37

New note from Tennyson:

Beacon Energy (BCE LN) announced a substantial increase in reserves at its Erfelden oil field this morning following its successful SCHB-2(2.) well drilled earlier this year.

As previously announced, the well, situated in the upper Rhine basin onshore Germany, encountered a thicker than expected reservoir section with excellent reservoir properties.

Furthermore, the company’s understanding of the subsurface model has improved, with new datapoints tying the reservoir to seismic lines allowing for better mapping of the reservoir across the field (particularly into the adjacent Schwarzbach South segment).

Pressure and gas ratio analysis suggests that there is no material fault offset between the two segments, and accordingly the company expects that the currently defined contingent resources associated with this section to be reclassified as reserves, justified for development.

The upshot of these revisions is that the best estimate (i.e. 2P) reserves will increase to 7.24 mmbbls (+91% from previous estimates), with the high case now above 10 mmbbls recoverable (+77%). These additional reserves will be incorporated into a new full field development plan, from which the full economic impact of the additional volumes could be established.

For a rough estimate, however, we can use the CPR NPV10 unit valuations in the previous high case (which looks broadly consistent with the new, best estimate case) of €18.3/bbl and apply it to the updated reserve numbers. This suggests an implied NAV of US$141.6m in the best estimate case, and just under US$200m in the high case.

Meanwhile, operations to start commercial production from the SCHB-2(2.) well continue, with the rod pump (required to finish clean-up operations) in the process of being installed. Production at the rod pump capacity of around 250 bbls/d is expected in the next fortnight, with an electrical submersible pump (ESP) to be installed once clean-up is complete (anticipated in mid-Q1 next year).

With ESP support the well is expected to produce at rates in excess of 900 bopd based on industry calculations, however the full productivity of this well can only be established once clean-up operations are complete.

The next steps for the company will be an update once the rod pump is installed and producing. Meanwhile adjustments will be made to the original field development plan to account for the additional volumes discovered by SCHB-2(2.), alongside a formal update of the CPR, likely in the new year.

[bad gateway] 13/11/2023 08:36

re my concerns from the interims..

"Management's base case is that the SCHB-2 well will continue to clean-up and by the end of November 2023 production flow rates from the well will be consistent with, or exceed, the "best estimate" outlined in the Competent Persons Report ("CPR") published in December 2022.

Management have also considered a number of downside scenarios, including scenarios where the well clean-up is more protracted, the production flow rate from the well is materially below the "best estimate" outlined in the CPR, or additional activities (and expenditure) are required in order to increase flow rates.

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 equity or debt funding."

Note the base case being the "best estimate" from the Dec 22 CPR which I believe was 800bopd and they expected that by end of Nov.
Obviously not going to happen now hence my questions about funding.

[wally27] 13/11/2023 08:22

#BCE currently around £20 mil mcap...


New note from Tennyson:

Beacon Energy (BCE LN) announced a substantial increase in reserves at its Erfelden oil field this morning following its successful SCHB-2(2.) well drilled earlier this year. As previously announced, the well, situated in the upper Rhine basin onshore Germany, encountered a thicker than expected reservoir section with excellent reservoir properties. Furthermore, the company’s understanding of the subsurface model has improved, with new datapoints tying the reservoir to seismic lines allowing for better mapping of the reservoir across the field (particularly into the adjacent Schwarzbach South segment). Pressure and gas ratio analysis suggests that there is no material fault offset between the two segments, and accordingly the company expects that the currently defined contingent resources associated with this section to be reclassified as reserves, justified for development.    The upshot of these revisions is that the best estimate (i.e. 2P) reserves will increase to 7.24 mmbbls (+91% from previous estimates), with the high case now above 10 mmbbls recoverable (+77%). These additional reserves will be incorporated into a new full field development plan, from which the full economic impact of the additional volumes could be established. For a rough estimate, however, we can use the CPR NPV10 unit valuations in the previous high case (which looks broadly consistent with the new, best estimate case) of €18.3/bbl and apply it to the updated reserve numbers. This suggests an implied NAV of US$141.6m in the best estimate case, and just under US$200m in the high case.  Meanwhile, operations to start commercial production from the SCHB-2(2.) well continue, with the rod pump (required to finish clean-up operations) in the process of being installed. Production at the rod pump capacity of around 250 bbls/d is expected in the next fortnight, with an electrical submersible pump (ESP) to be installed once clean-up is complete (anticipated in mid-Q1 next year). With ESP support the well is expected to produce at rates in excess of 900 bopd based on industry calculations, however the full productivity of this well can only be established once clean-up operations are complete. The next steps for the company will be an update once the rod pump is installed and producing. Meanwhile adjustments will be made to the original field development plan to account for the additional volumes discovered by SCHB-2(2.), alongside a formal update of the CPR, likely in the new year.

[apotheki] 13/11/2023 08:13

Beacon Energy Chief Executive Officer, Larry Bottomley commented:

"This internal assessment following the drilling of SCHB-2(2.) confirms the material impact the well has had on our reserve base in both the Stockstadt Mitte segment of the Erfelden field and the de-risked adjacent Schwarzbach South segment. As a result of the SCHB-2(2.) well, the Company believes that the Best Estimate reserves on the Erfelden field have increased from 3.8 mmbbls (pre-drill) to 7.2 mmbbls. The development of both segments that make up the central part of the Erfelden field will now be incorporated into a revised field development plan to realise the value from the material upgrade in the Company's assessment of reserves.

"We remain fully focused on bringing SCHB-2(2.) into optimal production as quickly as possible. We are working hard across all aspects of the subsurface evaluation and we are undertaking a comprehensive review of the drilling and completion operations to incorporate these learnings into an updated field development plan to deliver this additional value.

"We look forward to providing an update on the clean-up and production from the well in due course."

[steephill cove] 13/11/2023 08:03

BCE reserves nearly DOUBLED from 3.8 to 7.2M Barrels of Oil.

The high estimate nearly TRIPLES it to 10M Barrels of Oil.

Well done BCE Management Team 👏

BCE share price 📈⬆5039;🆙✅;💪

[steephill cove] 13/11/2023 08:01

BCE fundraised GBP4.3 million with new and existing shareholders on 15 September 2023.

They do not need further funding 😆

Ignore the derampers trying to suppress the very positive BCE RNS news today 📈⬆5039;🆙✅;👍

[pacman9] 13/11/2023 07:53

I haven't seen anywhere in the last updates stating the esp would be installed in November. In the update in early September and in the interim results, they simply stated the eventual installation of the esp. They have now put a time on that at mid Q1.

[sos100] 13/11/2023 07:47

bad gateway - impossible to answer your question as companies like this will always raise at some point

Hopefully not stupid enough to do another one so soon after the last🤔

[bad gateway] 13/11/2023 07:36

why would anyone be short on bce? They're already on a low. Will look through the cpr again pacman and see if you're right. Know for sure they were to have had the first pump installed during oct and the 2nd pumping 900bopd during nov as they told us all in the placing rns et al.
Genuine question how do you think funds are now and do you believe they'll last til they're producing decent rates?
Don't want to be spiked again.

[steephill cove] 13/11/2023 07:30

Pacman9, that is a Bad Gateway deramp because he is probably short on BCE. Filter him & move on ✅

Expect a few more derampers popping up on this thread today because they will be trying to mitigate their losses 👍

[pacman9] 13/11/2023 07:29

It also clearly states that they expect esp installed by middle of Q1, not sometime next year.Could you show me the line which states they have to pump 800 bopd or need to raise.

[steephill cove] 13/11/2023 07:26

BCE reserves nearly DOUBLED from 3.8 to 7.2M Barrels of Oil.

The high estimate nearly TRIPLES it to 10M Barrels of Oil.

Well done BCE Management Team 👏

BCE share price 📈⬆5039;🆙✅;👍

[bad gateway] 13/11/2023 07:26

No have you forgotten that most of those were to pay debts from the delays in drilling so far?

[pacman9] 13/11/2023 07:25

They've already raised funds. Have you forgotten.

[bad gateway] 13/11/2023 07:18

Pretty sure their cpr stated they needed to be producing with the 2nd pump during Nov to avoid a need for funds. Believe it was 800 bopd they needed?
They haven't installed the first pump yet and don't expect the second til sometime next year so would have been good if they'd confirmed their cash position imo.

[steephill cove] 13/11/2023 07:18

BCE Flow rates likely to exceed 900 BOPD with ESP

BCE share price 📈⬆5039;🆙✅;👍

[steephill cove] 13/11/2023 07:15

BCE Reserves Upgrade

Erfelden field has increased from 3.8 mmbbls (pre-drill) to 7.2 mmbbls (post drill).

With a high estimate of 10 mmbbls.

BCE share price 📈⬆5039;🆙✅;💪

[reidy66] 13/11/2023 07:05

Rns lads Boom.time.today!!

[karina] 12/11/2023 22:02

Do you have a link for the telegram group please ? Think we are in for a good month

[wally27] 12/11/2023 21:24

Posted on #BCE telegram group just now...

load up this week all - i have heard from contacts in drilling world (Halliburton) that the whispers are that all cleaned up and good flow rate- i have had to delve deep into my contacts for this. i am MD of an oil company out of Houston that supply many oils to service companies dealing with offshore and onshore drilling. GLA