Beacon Energy, 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, announces an update on the Schwarzbach-2(2.) ("SCHB-2(2.)") well.

Summary:

• The SCHB-2(2.) well has encountered good quality oil-bearing reservoirs in the Meletta-Schichten ("Meletta") sandstones and the Pechelbronner-Schichten ("PBS") sandstones within the Stockstadt Mitte segment of the Erfelden field.
• An electric wireline logging programme has been completed and initial analysis shows good quality oil-bearing reservoirs with porosity ranges above pre-drill expectations.
• Initial evaluation of the logs over the PBS indicates a 34-metre gross interval containing 28 metres of oil-bearing net reservoir, with porosities averaging 18% and up to 28%, all of which significantly exceed pre-drill estimates.
• These oil-bearing reservoirs were encountered approximately 25 metres higher than prognosis with oil observed on the shale shakers and in the mud pit whilst drilling these intervals.
• No water-bearing sands were encountered in the Meletta or the PBS intervals.

SCHB-2(2.) electric wireline well logging results

The SCHB-2(2.) well reached total drill depth of 2,255m metres (1,717 metres True Vertical Depth) on 13 August 2023. This well was drilled to target hydrocarbons in the undeveloped Stockstadt Mitte segment of the Erfelden field, with 2P oil reserves of 3.784mmbbls assigned to this segment from the independent Competent Person's Report ("CPR") published by the Company in December 2022.

The electric wireline well logging has now been conducted in the well and is interpreted to have encountered good quality oil-bearing reservoir in the Meletta and the PBS reservoirs with porosity ranges above pre-drill expectations.  The initial evaluation of the logs over the PBS indicates a 34-metre gross interval containing 28 metres of oil-bearing net reservoir, with porosities averaging 18% and up to 28%, all of which significantly exceed pre-drill estimates.

The target reservoirs were encountered approximately 25 metres higher than prognosis and oil was seen on the shale shakers and in the mud pit whilst drilling these intervals. No water-bearing sands were encountered in any of the target reservoirs.

The thicker oil-bearing net reservoir and higher range of porosities are better than pre-drill expectations and, in combination with the shallower target depth, have positive implications for both the reserves description and the future cash generative potential of this segment of the Erfelden field.

The operating team will now undertake reservoir clean-up, production testing and install the production liner to bring the SCHB-2(2.) well into production through the existing Schwarzbach facilities which are owned and operated by the Company. The expectation is that this production will be brought onstream over the next month.

The Company expects to provide a further update on progress of the SCHB-2(2.) well after undertaking the reservoir clean-up operation and production testing.

Beacon Energy Chief Executive Officer, Larry Bottomley commented:
"The SCHB-2(2.) well has now been safely, effectively and successfully drilled and logged, a testament to the quality of the Rhein Petroleum operating team who delivered a positive outcome despite encountering certain technical challenges through the drill. The well has encountered oil bearing reservoir in the Meletta and PBS sandstones, both shallower than predicted with the PBS being a thicker interval with more sand and of better quality than pre-drill estimates. These results imply significant upside to the reserve range assigned to the Stockstadt Mitte segment in the CPR published by the Company in December 2022, and this will be the focus of one of the post-well projects.

"The electrical wireline logs demonstrate that this well has the capacity to materially increase the Company's production and revenue as the well is brought onstream through our wholly-owned and operated existing facilities. This is a very important step in the Company's aspiration to build a self-funding platform for growth.

"In addition, the data provided from the SCHB-2(2.) well will help to de-risk the 2C contingent resources of 2.4mmbbls assigned to the adjacent Schwarzbach South segment which will be targeted during the further development of the Erfelden field.

"The operations team will now focus on completing the well for production and we will update the market as appropriate".