Schwarzbach-2 (SCHB-2) Well Update

Beacon Energy PLC

17 July 2023

 

17 July 2023

Beacon Energy plc

("Beacon Energy" or the "Company")

Schwarzbach-2 (SCHB-2) Well Update

Beacon Energy (AIM:BCE), the full-cycle oil and gas company with a portfolio of production, development, appraisal and exploration onshore German assets through its wholly-owned subsidiary, Rhein Petroleum GmbH ("Rhein Petroleum"), announces an update on the Schwarzbach-2 ("SCHB-2") drilling operations which spudded 19 June 2023.

Rhein Petroleum has performed a successful recovery or 'fishing' operation in the SCHB-2 well to free a directional drilling assembly stuck in the 12¼" hole section and has returned it safely back to surface.

The stuck pipe incident occurred after the well had made good progress, reaching a drilled depth 100m above the first target which remains untested. The operations team will now clean out the 12¼" hole section before continuing with drilling to the target reservoirs.

The Company expects to provide a further update on the progress of drilling operations during the course of next week.

Beacon Energy Chief Executive Officer, Larry Bottomley commented:

"Clearly this is an unfortunate development that has caused a delay in delivering the SCHB-2 development well, however we see a minor impact to the overall costs of the well relative to its upside potential in the success case. These unavoidable challenges are common when drilling and it has been our focus to ensure it was resolved in a safe, rapid and cost-efficient manner.

"We are very pleased with the exemplary performance of the operating team in Rhein Petroleum, who have moved swiftly to resolve the situation so we can continue to focus on delivering the objectives of this well.

"We had made good progress with the drill up to this point, with the situation occurring just above the first target zone, with all shallower horizons being on prognosis and the well encountering the expected increase in background hydrocarbon gas as the drill bit got closer to that target.  The operations team are fully focused on drilling to TD and we will update the market on the results of these efforts."

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Enquiries:

Beacon Energy plc Larry Bottomley (CEO) / Stewart MacDonald (CFO)	[phone]
Strand Hanson Limited (Financial and Nominated Adviser) Rory Murphy / James Bellman	[phone]
Buchanan (Public Relations) Ben Romney / George Pope [e-mail]	[phone]
Tennyson Securities Limited (Joint Broker) Peter Krens / Ed Haig-Thomas	[phone]
Optiva Securities Limited (Joint Broker) Christian Dennis	[phone]

For further information, please visit  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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