Beacon Energy plc resumed trading following publication today of its annual audited accounts for its operations in the Erfelden field in Hessen, onshore Germany.
POTENTIAL
Comprehensive loss for 2023 totalled $3.7 million (May – December 2022: $1m) while cash and equivalents increased to $4.8m by year end.
Continued cost reductions, due to be fully implemented by the end of 2024, are expected to reduce cash operations from €2.5m currently to €1.3m.
The company said that its directors continue to defer or receive a “significant” proportion of their fees in shares.
Interim results to 30 June 2024 show Beacon held cash of $1.4m.
The company expects a resolution of the creditor process during Q4 2024 after talks failed earlier this year following the poor performance of the Schwarzbach 2(3.) sidetrack well.
Beacon added it had a “robust and fully financed restructuring plan” aimed to maximising cash generation.
“In summary, it has been a frustrating series of events given the operational challenges encountered during the drill and subsequent flow rates from SCHB-2, ” said non-executive chairman Mark Rollins.
“As a board, we remain convinced that Erfelden is a material and potentially highly valuable onshore oil discovery with best estimated recoverable reserves of 7.2 mmbbl.
“On behalf of our shareholders, we will continue to assess all options to realise maximum value from our assets.”