REG - Beacon Energy PLC - SCHB-2 Rig Mobilisation

Beacon EnergyAnnouncement

06/06/2023 07:00

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RNS Number : 6938B  Beacon Energy PLC  06 June 2023

6 June 2023

Beacon Energy plc

("Beacon Energy" or the "Company")

Schwarzbach-2 Development Well Drilling Rig Mobilisation

Beacon Energy (AIM:BCE) is pleased to announce that the E202 drilling rig
contracted to its wholly-owned subsidiary, Rhein Petroleum GmbH ("Rhein
Petroleum"), is expected to mobilise on 12(th) June for the planned
Schwarzbach-2 ("SCHB-2") development well within the Erfelden Field, onshore
South West Germany. This rig is fully-crewed and has been contracted from RED
Drilling & Services GmbH ("RED Drilling").

The rig is scheduled to be on location and operational by 19(th) June.
Drilling operations are expected to take in the region of 25 days to reach the
prognosed TD drilling depth of 2255m (1709m True Vertical Depth), with an
additional 12 days planned for reservoir clean-up and production testing.

 

The drilling pad is located next to the Schwarzbach facility which is owned
and operated by Rhein Petroleum and it is anticipated that once completed, the
SCHB-2 well will be tied-in to these existing production facilities to enable
immediate production from the well.

 

Larry Bottomley, Chief Executive Officer of Beacon Energy, commented:

 

"The Rhein Petroleum team is doing an excellent job in conjunction with RED
Drilling to enable the start of the drilling programme so quickly after the
RTO and the readmission of the Company on to AIM. This well is the first of
potentially four development wells to be drilled at Erfelden over the
following 2 years and is the next step in delivering the self-funding business
model created by the acquisition of Rhein Petroleum.

 

The SCHB-2 well represents a material value catalyst for Beacon.  In the
success case, this well will deliver a step-change in production and cashflow
which will enable the Company to fund further value enhancing activity across
the portfolio.  We look forward to providing further updates on the progress
of the SCHB-2 well as appropriate."

 

 

Enquiries:

 Beacon Energy plc                                        +44 (0)1624 681 250

 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 / George Pope

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

 Peter Krens / Ed Haig-Thomas

 Optiva Securities Limited (Joint Broker)                 +44 (0)20 3411 1881

 Christian Dennis

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

To register for Beacon Energy's email alerts, please complete the following
form:  https://www.beaconenergyplc.com/media-centre/news/#alerts
(https://www.beaconenergyplc.com/media-centre/news/#alerts)

About the Erfelden Field

The Erfelden oilfield is the most northern oil field in the Upper Rhine Graben
and is comprised of four juxtaposed structural segments: the mainly depleted
Kuehkopf segment, the producing Schwarzbach Main segment, the discovered
Stockstadt Mitte segment and the unproven Schwarzbach South segment.

 

The westerly Kuehkopf segment was discovered by Exxon and produced oil between
1956 and 1985, who also operated the adjacent Stockstadt field. Both
accumulations were discovered, appraised and developed from the subsurface
description from legacy 2D seismic data.

 

Rhein Petroleum subsequently secured the licence (Operator, 100%) and acquired
an extensive 3D seismic survey which led to the discovery of the Schwarzbach
Main segment in 2015 when the Schwarzbach-1 well (SCHB-1) discovered oil in
the Oligocene Pechelbronner-Schichten ("PBS") sandstones in a North-South
trending structural high at northern end of the Erfelden Field. The
Schwarzbach Main segment is still producing light oil (37-38 API) from the
SCHB-1a well through the Schwarzbach Production facility which is owned and
operated by Rhein Petroleum.

 

The Schwarzbach-2 development well (SCHB-2) is targeting the Stockstadt Mitte
segment and will "twin" the  Stockstadt Mitte-1 well (SK-M1), drilled by
Exxon in 1986 which proved hydrocarbons in this segment. This well encountered
oil in the PBS sandstones and in the shallower Meletta-Schichten sands ("ME").
The independent Competent Person's Report published by the Company in December
2022 assigned 2P reserves of 3.784mmbbls to the Stockstadt Mitte segment.

 

The development plan for the Stockstadt Mitte segment envisages 3 wells - the
SCHB-2 production well  and subsequently an additional 2 wells; a producer
and a water injector. The aim is that these additional wells will be drilled
over the course of the next 18 months funded from the free cash flow generated
by production from the SCHB-2 well.

 

The drill pad has been prepared immediately adjacent to the Schwarzbach
Production facility and 3 conductor pipes have been set to a depth of 85m
below ground level. A flowline from the drilling pad to the Schwarzbach
Production facility has been installed to facilitate tie-back and hook-up as
these wells are completed and put into production.

 

The Schwarzbach South segment is undrilled, with 2C Contingent Resources of
2.4mmbbls described in the CPR. This segment will be the target of future
development drilling.

About RED Drilling

RED Drilling & Services GmbH owns two fully equipped Bentec rigs which are
rated up to 300 metric tonnes hookload and which are capable of drilling wells
up to 5500m deep. Further information on RED Drilling can be found at:
https://www.red-drilling-services.at/en
(https://www.red-drilling-services.at/en) .

 

 

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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