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Hi euclid55. I expect the revised Schwarzbach NPV, whatever it turns out to be with the better than expected reservoir, will bear very little relationship to the hopefully much improved SP and our market cap. In my experience the NPV is usually far greater than either the mkt cap, or the cash received when an asset is sold. Still, I live in hope!

Please wake up Mrswamp. Monday is a bank holiday.

I've now looked at the 2022 and 201 accounts. The 2021 accounts show that all the directors took a 20% pay cut from 1 April '20. This cut was increased to a 50% cut from 1 August '20. All these pay cuts were restored on 1 March '21. For comparative purposes the salaries were: BOC: 2020: £23k & 2021: £28k and SO: 2020: £130k & 2021: £146k. Before that the picture is not very clear because that's when SO replaced Hugh Mackay.

Here are a few facts about the Erfelden oil field that I picked out from the CPR in Beacon's March '23 Admission Document: The field was originally discovered by Exxon in about 1985 but only came on stream under Rhein’s ownership in Q4 2019. I assume that's because it was too small for a major oilco like Exxon. The field is covered by 3D seismic data which IMO lowers the technical risk a lot. It currently produces from only one well, Shwarzbach-1A. At its peak rate this well produced 225 bopd (barrels of oil per day) and it currently produces only 15 bopd from two Oligocene reservoirs (the Meletta-Schichten Sandstones and the Pechelbronner-Schichten Sandstones) at about 1,700 metres depth. We have better reservoir parameters in Schwbach-2 than we did in Schwarzbach-1A which suggests to me that we should do a lot better than 225 bopd. Let's hope so, anyway.

BO'C was paid £41k in 2022 (up by 46% from £28k in '21) and SO received £258k (up by 77% from £146k in '21) according to the 2022 accounts. This makes me wonder what they are paying Will Holland. It's presumably in the region of £250k to £275k, or maybe more!

Hello Landicaamans. Have you seen Rhein's tea lady lately? If you're planning to talk to her (or maybe her son) perhaps you could ask if Rhein are testing both the PBS and the Meletta reservoirs, and are they testing them separately or together. I guess two separate tests will add a few days to the timetable. All the best.

In last week's RNS we heard quite a lot about the deeper (and thicker) PBS (Pechelbronner-Schichten) reservoir, but not very much about the Meletta reservoir. This makes me wonder if the Meletta reservoir might be a "poor second". Beacon may therefore wish to test the two zones separately, and it's usual to test the deepest zones first. So it will probably be the PBS zone first, and then plug it off, before testing the Meletta reservoir, if that's what's in the test programme. IMO it might therefore be a few more days, or maybe a week, before we hear the test results.

Hi Gwynwin. May I suggest that you check your arithmetic? The gross cost of the next WN well is expected to be £12 million based on (£1.4 million + £0.6 million) / 16.665% (or x6). Reabold's and UJO's 16.665% shares are expected to be £2.0 million each, and Rathlin's 66.67% share will be £8.0 million. Let's hope they (Rathlin) have something close to this sum under negotiation.

Hi Hms687. I'm sure that Schwarzbach will be highly profitable, so I can't disagree with you. What I was trying to predict was what the market cap might be at various production levels, and by comparison with a similar, quite small onshore UK field.

And I should have added that Beacon's market cap of £25.1 million represents 0.24p per share with our current 10.5 billion shares in issue.

I'm probably comparing apples and oranges here, but a possible comparison for Beacon might be with Europa which owns 30% of the UK onshore Wressle field which is making about 750 bopd gross. Wressle is probably more highly taxed than an onshore German field might be,and Europa have some other minor onshore UK production. But, leaving that aside, Europa's market cap is about £11.3 million for 225 bopd net (30% x 750 bopd). This means that 1one barrel of daily onshore UK production has a market value of about.£50,200. So 500 bopd for Beacon might be worth of the order of £25.1 million. Not too bad, eh?

What flow rates do you think we’ll get on testing? I'm hoping for at least 500 bopd, and maybe more, because there are apparently 28 metres of net oil-bearing reservoir with porosity averaging 18%. Beacon have said quite a lot about the thicker and deeper Pechelbronner-Schichten reservoir but not very much about the Meletta-Schichten reservoir. The RNS said: ”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".

This made me take a look at the CPR contained in the March '23 Admission Document and it makes quite interesting reading. Rhein / Beacon have 7 other licences in the Upper Rhine Graben besides the Schwarzbach licence, and several of them already have oil discoveries on them. So I think there's still plenty of upside.

The following was posted recently on Rathlin's website. I assume they must be quite short of news to share with us, as well as not actually producing any gas in the UK.

"UK GAS FOUR TIMES CLEANER THAN IMPORTED GAS.

A report by the North Sea Transition Authority indicates that domestically produced gas is on average almost four times cleaner than importing gas in LNG form. This is because of the way the gas is transported and, in some cases, the methods of extraction. In particular, the analysis shows that gas extracted from the UK Continental Shelf has an average emission intensity of 21 kgCO2e/boe (kilograms of CO2 equivalent per barrel of oil equivalent), whereas imported LNG has a significantly higher average intensity of 79 kgCO2e/boe. Norway has the lowest carbon intensity of all LNG imports at 33 kgCO2/boe, and Peru the highest at 90, with the average coming to 79, while UK gas has a carbon intensity of only 21 kgCO2/boe.

Thanks Landicaamans ..... and the tea lady too!. I estimate the average deviation at 40 degrees and 24 minutes. GP.

It looks as if the well has been deviated some distance away from its surface drilling site towards the down hole reservoir target. At the outset we were told that the well would reach its total depth at 1,709 metres true vertical depth which corresponds to 2,255 metres measured depth. In the event the relevant depths were 1,717m TVD and 2,255 m MD. These figures allow us to calculate the average deviation of the well bore (which was just over 40 degrees from vertical) and also the "offset" from the surface location, which comes to 1,461 metres. So it's quite a highly deviated well in my opinion. This may possibly explain why it has taken so long to drill. Let's hope the wireline logging goes a bit more quickly!

Hi Casper786. From my own experience of this industry I can say that wireline logging is almost invariably done at total depth. This happens whether there's a lot of promise from the drilling, or even little apparent chance of success. It's done to confirm the drilling results, even in a dry hole, in case something has been missed. However here we are drilling a development well here, so I feel there's a bery good chance of success.

They aren't testing, not yet anyway. They are merely logging at the moment and this is rotin when you've reached total depth. This will tell them whether testing is warranted or not.

Quite big purchase today of 10 million shares at 0.88p. Does someone have some positive info, I wonder?

You're back here again Mrswamp after a better than 3 month silence from 28 April until 8 August. Where have you been with your much missed positivity about UJO?

I really like the sound of your tea lady, Landicaamans. Could she please let us know the net oil pay before it's published? Thanks, GP