Beacon Energy PLC, a full-cycle oil and gas company, has provided an operational and corporate update regarding the Schwarzbach 2(3.) sidetrack well ("SCHB-2 sidetrack") in the Erfelden field. The well was reconnected to the production facilities on 12 June 2024 to restart production, but a stabilised rate has yet to be achieved. It is anticipated that production will likely stabilize in the 50 - 100 barrels of oil per day range, substantially lower than expected based on previous electronic logs.

The poor performance is attributed to residual reservoir damage in the upper section of the Upper PBS reservoir and poor permeability in the Lower PBS reservoir. The company is reviewing options to stabilize and optimize production from the current well-bore and considering longer-term options to exploit the resource potential, subject to funding. Additionally, a material cost reduction program is being planned to align the cost base with expected production rates to maximize cash flow generation.

Due to uncertainties and potential impact on asset impairment and going concern in the accounts, the company may not be able to finalize and publish its Annual Report for the year to 31 December 2023 by 30 June 2024, as stipulated by Rule 19 of the AIM Rules for Companies. Consequently, trading in the company's ordinary shares on AIM will likely be suspended from 1 July 2024, with the suspension expected to be lifted upon the publication of the Annual Report.

Stewart MacDonald, Incoming CEO of the Company, expressed disappointment at the lower-than-expected production rate and stated that the technical team is diligently working to understand the results against the reservoir characteristics derived from the electronic logs. The company plans to release a short presentation webcast on its website to provide further details.

The company will continue to make announcements as required under the AIM Rules and will also commence discussions with the creditors of Rhein Petroleum. Beacon Energy has not provided any parent company guarantees related to the debts of Rhein Petroleum.

For further information, the company can be contacted through its CEO, Stewart MacDonald, or its financial and nominated adviser, Strand Hanson Limited. Public relations are handled by Buchanan, and Tennyson Securities Limited serves as the broker.