Beacon Energy Share Discussion Threads

[karina] 11/9/2023 16:12

no buy quote on ii currently

[rovi70] 11/9/2023 14:31

My purchase shows as a red sale ??????

[robwalsh25] 11/9/2023 14:07

Doubled my holding today!!!

[apotheki] 11/9/2023 14:00

TENNYSON E&P news – Beacon Energy – Schwarzbach-2(2.) update – anticipated initial flow rate of 900 bopd

Tennyson Securities, Energy Research

11 September 2023

Beacon Energy (BCE LN) has issued an update on the Schwarzbach-2(2.) well, following on from last month’s announcement of a substantial oil discovery. The company has completed analysis of the well’s flow potential, based on the reservoir parameters, nearby analogue wells, and the oil recovered to surface, with indications of a minimum of 900 bopd expected from this wellbore – at least 50% higher than the considered pre-drill base case of 600 bopd.

Since TD was reached, the company has perforated the well in preparation for production, however delays in the programme resulted in the clean-up operation only starting last Friday.

Due to the rig having commitments elsewhere, it has now been released, with Beacon finishing clean-up on a rig-less basis. This is ongoing at restricted rates of around 150 bbls/d, before a rod pump can be installed over the coming weeks to allow for a full clean up at rates up to c.250 bbls/d. Once all drilling fluids etc have been recovered, an electrical submersible pump can be installed and production ramped up to the expected commercial rate in excess of 900 bopd.

Meanwhile, Beacon is updating its subsurface model with the learnings of Schwarzbach-2(2.). As previously announced, the company expects the reserve base to substantially increase in the next audit.

The new well data now points to current 2P reserves (i.e. base case) up to, and potentially in excess of the 5.8 mmbbl pre-drill high case (versus 3.78 mmbbls pre-drill 2P case).

In terms of valuation implications, at 900 bopd, Beacon expects monthly operating cash flow of over US$1.5m per month at US$80/bbl Brent prices – equivalent to almost US$20m per annum.

The reserves are yet to be formally upgraded, however assuming the new base case is
consistent with the 3P case pre-drill, this would imply an NPV10 valuation of c.US$112m using the assumptions from the CPR (including a realised oil price of trending down to a long term c.US$60/bbl in 2030).

This is approximately double the pre-drill best case NPV10 of US$56.5m, and clearly has been de-risked substantially through the drilling of Schwarzbach-2(2.).

Furthermore, this valuation does not include anything for the 2C resources of 2.4 mmbbls at the adjacent Schwarzbach South fault block in particular, which will have also been
de-risked through the drilling of this well, nor does it include value for any other appraisal or exploration asset within Beacon’s substantial German portfolio.

Accordingly, we believe that there is considerable running room from Friday’s closing 0.27p/shr share price (market cap of c.US$35m) up to fair value.

The company has presented the results via an audiocast, which can be found
at hxxps://stream.buchanan.uk.com/broadcast/64fda29b84cbf5eec802cc26.

[apotheki] 11/9/2023 13:38

TENNYSON E&P news – Beacon Energy – Schwarzbach-2(2.) update – anticipated initial flow rate of 900 bopd

Tennyson Securities, Energy Research

11 September 2023

Beacon Energy (BCE LN) has issued an update on the Schwarzbach-2(2.) well, following on from last month’s announcement of a substantial oil discovery. The company has completed analysis of the well’s flow potential, based on the reservoir parameters, nearby analogue wells, and the oil recovered to surface, with indications of a minimum of 900 bopd expected from this wellbore – at least 50% higher than the considered pre-drill base case of 600 bopd.

Since TD was reached, the company has perforated the well in preparation for production, however delays in the programme resulted in the clean-up operation only starting last Friday.

Due to the rig having commitments elsewhere, it has now been released, with Beacon finishing clean-up on a rig-less basis. This is ongoing at restricted rates of around 150 bbls/d, before a rod pump can be installed over the coming weeks to allow for a full clean up at rates up to c.250 bbls/d. Once all drilling fluids etc have been recovered, an electrical submersible pump can be installed and production ramped up to the expected commercial rate in excess of 900 bopd.

Meanwhile, Beacon is updating its subsurface model with the learnings of Schwarzbach-2(2.). As previously announced, the company expects the reserve base to substantially increase in the next audit.

The new well data now points to current 2P reserves (i.e. base case) up to, and potentially in excess of the 5.8 mmbbl pre-drill high case (versus 3.78 mmbbls pre-drill 2P case).

In terms of valuation implications, at 900 bopd, Beacon expects monthly operating cash flow of over US$1.5m per month at US$80/bbl Brent prices – equivalent to almost US$20m per annum.

The reserves are yet to be formally upgraded, however assuming the new base case is
consistent with the 3P case pre-drill, this would imply an NPV10 valuation of c.US$112m using the assumptions from the CPR (including a realised oil price of trending down to a long term c.US$60/bbl in 2030).

This is approximately double the pre-drill best case NPV10 of US$56.5m, and clearly has been de-risked substantially through the drilling of Schwarzbach-2(2.).

Furthermore, this valuation does not include anything for the 2C resources of 2.4 mmbbls at the adjacent Schwarzbach South fault block in particular, which will have also been
de-risked through the drilling of this well, nor does it include value for any other appraisal or exploration asset within Beacon’s substantial German portfolio.

Accordingly, we believe that there is considerable running room from Friday’s closing 0.27p/shr share price (market cap of c.US$35m) up to fair value.

The company has presented the results via an audiocast, which can be found
at hxxps://stream.buchanan.uk.com/broadcast/64fda29b84cbf5eec802cc26.

[haff1] 11/9/2023 13:37

With the 47Millionbuy it's more buys than sells.....this should he showing a gain on the day with the news!

[bad gateway] 11/9/2023 13:30

Tennysons take, not seen it posted. Good to see some production whilst waiting on the rod pump.

TENNYSON E&P news – Beacon Energy – Schwarzbach-2(2.) update –
anticipated initial flow rate of 900 bopd
Tennyson Securities, Energy Research
11 September 2023

Beacon Energy (BCE LN) has issued an update on the Schwarzbach-2(2.) well, following on from last month’s announcement of a substantial oil discovery. The company has completed analysis of the well’s flow potential, based on the reservoir parameters, nearby analogue wells, and the oil recovered to surface, with indications of a minimum of 900 bopd expected from this wellbore – at least 50% higher than the considered pre-drill base case of 600 bopd.

Since TD was reached, the company has perforated the well in preparation for production, however delays in the programme resulted in the clean-up operation only starting last Friday.

Due to the rig having commitments elsewhere, it has now been released, with Beacon finishing clean-up on a rig-less basis. This is ongoing at restricted rates of around 150 bbls/d, before a rod pump can be installed over the coming weeks to allow for a full clean up at rates up to c.250 bbls/d. Once all drilling fluids etc have been recovered, an electrical
submersible pump can be installed and production ramped up to the expected commercial rate in excess of 900 bopd.

Meanwhile, Beacon is updating its subsurface model with the learnings of Schwarzbach-2(2.). As previously announced, the company expects the reserve base to substantially increase in the next audit.
The new well data now points to current 2P reserves (i.e. base case) up to, and potentially in excess of the 5.8 mmbbl pre-drill high case (versus 3.78 mmbbls pre-drill 2P case).

In terms of valuation implications, at 900 bopd, Beacon expects monthly operating cash flow of over US$1.5m per month at US$80/bbl Brent prices – equivalent to almost US$20m per annum.

The reserves are yet to be formally upgraded, however assuming the new base case is
consistent with the 3P case pre-drill, this would imply an NPV10 valuation of c.US$112m using the assumptions from the CPR (including a realised oil price of trending down to a long term c.US$60/bbl in 2030).

This is approximately double the pre-drill best case NPV10 of US$56.5m, and clearly has been de-risked substantially through the drilling of Schwarzbach-2(2.).

Furthermore, this valuation does not include anything for the 2C resources of 2.4 mmbbls at the adjacent Schwarzbach South fault block in particular, which will have also been
de-risked through the drilling of this well, nor does it include value for any other appraisal or exploration asset within Beacon’s substantial German portfolio. Accordingly, we believe that there is considerable running room from Friday’s closing 0.27p/shr share price (market cap of c.US$35m) up to fair value.

The company has presented the results via an audiocast, which can be found
at

[haff1] 11/9/2023 13:20

Roughly as much buying as selling now...so why are the MMs still holding it down?

[firestarter1] 11/9/2023 12:13

Heavy dumping

[firestarter1] 11/9/2023 11:57

Wnt be any news until oct

[bmwman3] 11/9/2023 11:48

Watch when the confirmation news comes through that they've managed to get the well to flow at 900 bopd and the revenue that'll bring in

[haff1] 11/9/2023 09:41

This RNS was about 30% better than expected and really should show in share price that is currently low imho..

[bmwman3] 11/9/2023 09:19

Especially on offer at this SP

[daar] 11/9/2023 08:51

Monster in the making.. Multi bagger medium to long term!

[apotheki] 11/9/2023 08:35

Well worth re-reading the RNS as the BODs expect very conservatively 900 bopd so that now has the likely potential to be over 1,000 bopd and maybe even 1,500 bopd and with Brent now over USD$90 going most likely over USD$100 then this is getting very interesting especially as it is just the start!

With investor [and not trader] hat on BCE could [based on the overall potential of the new much bigger than expected OIL find] in a couple of years time be worth 5p+

[bmwman3] 11/9/2023 08:32

Agree great buying / topping up opportunity imho

[apotheki] 11/9/2023 08:10

Many thanks for the once in a life time BUYING opportunity!

[purple11] 11/9/2023 08:08

all about HE1 for me now

hoping for some traction during the drill.after what it did last time good chance itll do something

may not do it but better to be in and give it ago than pass.no downside risk that i can see.gl

[jungmana] 11/9/2023 08:07

Well done mate.This is not worth more than 0.13p right now imo.Cash all spent and funding required

[purple11] 11/9/2023 08:02

ive exited on the bell @.26 for a lovely 3 bag.

theyll need to place and looks frothy gla

[jungmana] 11/9/2023 07:58

I wait for the holy rod pump and flow rate.Too overvalued today

[apotheki] 11/9/2023 07:57

Hey Jungmana - you never bought any BCE as the records of your posts testify so please give it a rest and just be happy for all LTHs at BCE

[apotheki] 11/9/2023 07:56

"the sub-surface results far exceed our pre-acquisition and pre-drilling expectation"