Beacon Energy plc plans to reinstall a rod pump to allow a stabilised flow rate at the Schwarzbach-2 sidetrack oil well in the Erfelden field, Hessen onshore Germany.
FLOW RATE
The company said that the electrical submersible pump (ESP) had been running at the lower limit of its operating range, at approximately 50 bopd – meaning that the well had yet to achieve stabilised flow rate.
The cost of re-installing a rod pump, expected over the coming weeks, is approximately €75,000.
Beacon continues its cost reduction measures and plans to decrease annual cash operating costs from €2.5 million to €1.3m, by the end of 2024.
The company added it had entered a formal three-month process with some creditors, aimed at agreeing a reduction in liabilities and a deferred payment plan based on future cash flow.
The process is expected to conclude in early October.
However it was unable to reach an agreement with all creditors and so placed its subsidiary Rhein Petroleum into a formal process with its creditors (similar to US Chapter 11 bankruptcy protection).
Beacon shares continue to be suspended while it completes its annual report, now expected in September 2024.
Chief executive Stewart MacDonald said that the company was confident, but unable to guarantee, of reaching a satisfactory outcome with its creditors in early October.
“Our focus is on stabilising production, implementing cost reduction measures and maximising cash generation for the benefit of all stakeholders.”