Beacon Energy shares jump on German well progress

Beacon Energy shares rose on Monday after providing an update on operations at its Schwarzbach-2 well in the Erfelden field, Germany

The company announced that sand jetting operations using a coiled tubing unit have been completed at the Schwarzbach-2(2.) well. Beacon now expects to resume production at the well in the coming days after reinstalling the rod pump.

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The impact of the sand jetting on production rates will only be known once output has stabilised after restoring pumping, Beacon said. The company plans to provide a further update once this occurs over the next several weeks. After the well has been fully cleaned from the jetting work, expected in April 2024, Beacon intends to replace the rod pump with an Electrical Submersible Pump to maximise production.

The project has faced a number of delays and today’s news will be welcomed by investors.

Beacon Energy shares were 7% higher at the time of writing.

“We are pleased to have safely completed the sand jetting operations to stimulate the well and are now working to recommence production in the coming days with the rod pump,” said Beacon Energy Chief Executive Officer, Larry Bottomley.

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“We remain fully focused on establishing optimal production from the SCHB-2(2.) well as quickly as possible following this well stimulation operation and ultimately the installation of the ESP.”

“We look forward to the results of this operation and providing an update to shareholders in due course.”

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