REG - Beacon Energy PLC - Erfelden Operational Update

Beacon EnergyAnnouncement

29/01/2024 07:00

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RNS Number : 1344B  Beacon Energy PLC  29 January 2024

29 January 2024

Beacon Energy plc

("Beacon Energy" or the "Company")

Erfelden 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"), announces an operational update on the
Schwarzbach-2(2.) ("SCHB-2(2.)") well in the Erfelden field.

 

SUMMARY

 

·    With the rod pump installed in late 2023, the SCHB-2(2.) well
continues to clean-up although production remains at a rate of
approximately 40 barrels of oil per day ("bopd").

 

·    As previously announced, the low production rate indicates that the
reservoir near the wellbore has been invaded with drilling fluids which are
restricting flow rates. This is not uncommon in situations where hole
stability issues have occurred during drilling due to the use of high-density
drilling fluids to stabilise the hole.

 

·    The Company has now commenced sand jetting operations with a coiled
tubing unit to stimulate the well. Sand jetting will focus on the oil-bearing
reservoirs in the Pechelbronner-Schichten ("PBS") sandstones.

 

·    Sand jetting technology uses a high-pressurised sand slurry with the
objective of creating deep perforations beyond the zone invaded with drilling
fluids. The expectation is that these deeper perforations will increase
communication between the oil-bearing reservoir and the wellbore, and
therefore increase production rates.

 

·    The sand jetting operation is expected to take 10 - 14 days,
including the time required to re-install the rod pump and recommence
production. Once the well is fully clean, which is anticipated to take several
weeks, it is expected that the rod pump will be replaced with an Electrical
Submersible Pump ("ESP") to maximise production - this is currently scheduled
to take place in April 2024.

 

·    In addition, as part of the sand jetting operation, the Company will
recover a downhole pressure memory gauge which will inform our understanding
of both formation pressure in the oil-bearing reservoir and the restriction of
flow around the wellbore caused by fluid invasion.

 

·    The Company is fully funded to undertake the sand jetting operation
which has an estimated cost of less than €500,000.

 

The Company expects to provide a further update once a stabilised and
sustained flowrate from the rod pump has been achieved.

 

Beacon Energy Chief Executive Officer, Larry Bottomley commented:

 

"While the SCHB-2(2.) well encountered excellent oil-bearing reservoirs with
thickness and properties in excess of pre-drill prognosis, drilling fluids
that invaded the reservoir near the well bore during operations are currently
impeding production. The retrieval of the downhole pressure data will inform
our understanding of the impact that the drilling fluid invasion has had on
productivity.

 

"The Company has moved quickly to implement remedial actions required to
improve the productive potential of the well. Sand jetting is a proven
technology commonly used in the US which aims to provide deeper perforations
than that achievable using the conventional perforation technique used on this
well.

 

"We remain fully focused on establishing optimal production from the
SCHB-2(2.) well as quickly as possible through the rod pump and ultimately the
installation of the ESP.  Despite these operating challenges, the exceptional
technical results of the SCHB-2(2.) well have materially increased the
potential reserves of the Erfelden field and provided confidence on the
productivity potential from this and future wells.

 

"We look forward to the results of this operation and providing an update on
the work-over programme in due course."

END

Enquiries:

 Beacon Energy plc                                        +44 (0)20 7466 5000

 Larry Bottomley (CEO) / Stewart MacDonald (CFO)

 Strand Hanson Limited (Financial and Nominated Adviser)  +44 (0)20 7409 3494

 Rory Murphy / James Bellman

 Buchanan (Public Relations)                              +44 (0)20 7466 5000

 Ben Romney / Barry Archer / George Pope

 Tennyson Securities Limited (Broker)                     +44 (0)20 7186 9030

 Peter Krens / Ed Haig-Thomas

For further information, please visit  www.beaconenergyplc.com
(http://www.beaconenergyplc.com)   and @BeaconEnergyPlc on Twitter

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The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018.

 

 

 

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