Beacon Energy PLC (AIM: BCE) experienced a dip in their shares early this Monday after announcing that the resumption of drilling operations at the Schwarzbach-2 well in Germany, necessitates a sidetrack.
The company, in a public statement, conveyed that after successfully extracting a stuck drill bit, the deeper segment of the well was deemed ‘not viable for continued drilling’, prompting the team to execute a deviated sidetrack from a higher section of the wellbore.
Despite the hurdles, the company anticipates achieving the well’s target depth within this week and will provide the results accordingly.
Larry Bottomley, Beacon’s CEO, commented, “We believe that the fishing operation deteriorated the quality of the deeper part of the 12¼” hole, so it was wise to initiate a mechanical sidetrack to ensure a comprehensive evaluation of the primary objectives and to finish this well as a producer.”
He added, “This results in a slight delay in finishing the SCHB-2(2.) development well as we remain dedicated to delivering a substantial increase in the company’s production.”
In London, the share value of Beacon declined by 12.7%, with shares being traded at 0.072p each, thereby bringing the valuation of this micro-cap oil and gas company to just under £8.5 million.
