Beacon Energy Share Discussion Threads

[hang ten] 12/9/2023 12:48

Not suggesting in any way needed BUT Should funding be required the last thing anyone would want to do is dilute their position management included ! as the upside is massive! loan facility would be by far the cheapest option and BCE will have absolutely no problem raising funds on the back of the tremendous success of a 900 + barrel discovery - imo

[robwalsh25] 12/9/2023 12:44

Will be producing $18m a year from this well as of next month, load up folks!!!!!!

[jungmana] 12/9/2023 12:34

Imo fund raise coming. At what price is the big question ?

[robwalsh25] 12/9/2023 12:10

Firestarter is johnjames the prolific troll who also sends people ignorant private messages. Ignore the prat. Bought another few mill today

[rovi70] 12/9/2023 11:30

On trades more blue than red

[apotheki] 12/9/2023 11:30

You might have a point there but who really knows?

It is all opinions....

[hms687] 12/9/2023 11:29

Apotheki: I reckon this would’ve been mentioned in the last RNS if required

[karina] 12/9/2023 11:28

Because ?

The SCHB2(2.) well has been a challenging well from an operational perspective, with hole stability issues encountered in the initial and sidetracked hole sections,

A comprehensive review of the drilling and completion operations and the technical challenges encountered will be undertaken so that lessons learned are incorporated into an updated field development plan.

[haff1] 12/9/2023 11:27

Yet why isn't this flying as it might

[apotheki] 12/9/2023 11:15

Someone mentioned a fund raise @ BCE

My own opinion is that BCE could potentially require a small amount of funds due to the recent drilling although with the fantastic outcome over in Germany other options will no doubt also be considered such as some project financing?

[apotheki] 12/9/2023 10:55

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.

[apotheki] 12/9/2023 10:53

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.)

[apotheki] 12/9/2023 10:52

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.

[apotheki] 12/9/2023 10:51

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

[neo26] 12/9/2023 10:38

I bet u raise is coming. Imho

[hms687] 12/9/2023 10:38

Double Bottom anyone ?

Currently about 0.18p is the low yesterdays open

[orbis] 12/9/2023 10:36

Am confident this will go much higher but the MMs do seem to be having their fun over the short term.

[apotheki] 12/9/2023 10:33

MMs clearly playing their games again this morning!

[firestarter1] 12/9/2023 10:26

Dnt be fooled there is more selling

[haff1] 12/9/2023 10:24

Still more buying than selling...I've never seen a stock so shafted by the MMs on good news!

[firestarter1] 12/9/2023 09:47

0.1p soon round trip

[firestarter1] 12/9/2023 09:47

Where is Steve aka to Walsh he doubled up yesterday the moron

[apotheki] 12/9/2023 08:30

Well worth a second read....

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] 12/9/2023 08:25

Looks like the MM's to be fair are filling some BUY orders