By Shares of Beacon Energy took a hit on Monday following the announcement of delays in the drilling program at its Schwarzbach-2 onshore well in Germany.
As of 0727 GMT, shares were down by 21%, or 0.06 pence, to 0.21 pence.
The oil-and-gas company revealed that since initiating reservoir clean-up operations on Friday, the well has been producing a combination of oil, gas, and drilling fluids.
Although the drilling rig will now be released, clean-up efforts will continue on-site. In October, a rod pump capable of handling 250 barrels of oil per day will be installed to commence commercial production. This pump will eventually be substituted with an electrical submersible pump (ESP), providing greater capacity.
“We are confident that this well has the potential to deliver exceptional flow rates. Our immediate focus is on cleaning up the wellbore and implementing an ESP, but we cannot provide definitive production expectations until the clean-up and artificial lift solutions are complete,” stated Chief Executive Larry Bottomley.
Initial estimates predict a production rate of 900 barrels of oil per day, generating operating cash flows exceeding $1.5 million per month.
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