Business
Reverse Takeover Transaction and Corporate Update
Reverse Takeover Transaction and Corporate Update.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n \n \n 16 December 2022 \n \n \n \n \n \n Beacon Energy plc\n \n \n (\"Beacon Energy\" or the \"Company\")\n \n \n \n \n \n Reverse Takeover Transaction and Corporate Update\n \n \n \n \n \n Conditional Acquisition of Rhein Petroleum GmbH \n \n \n \n \n \n Beacon Energy plc\n \n (\n \n \n AIM:\n \n \n BCE\n ), the energy company seeking growth through acquisition or farm-in to interests in discovered upstream projects, is pleased to announce that the Company has entered into a conditional\n Share Purchase Agreement (\"SPA\") with Tulip Oil Holding B.V. (\"Tulip\") and Deutsche Rohstoff A.G. (\"DRAG\") (collectively, the \"Sellers\") relating to the purchase of the entire issued and to be issued share capital of Rhein Petroleum GmbH (\"RheinPetroleum\"), (the \"ProposedTransaction\").\n \n \n The board of Beacon Energy (\"Board\") considers the Proposed Transaction to represent a transformational, value enhancing transaction for shareholders, which is fully aligned with Beacon Energy's growth strategy.\n \n \n The Board believes the Proposed Transaction will deliver:\n \n \n ·\n A full-cycle portfolio of largely operated production, development, appraisal and exploration assets located onshore Germany, a low political risk jurisdiction over licences as set out below\n \n \n ·\n A near-term active work programme designed to enhance production and cash flow\n \n \n ·\n An experienced operating team in Rhein Petroleum that has a track record of exploration, appraisal, development and production operations\n \n \n ·\n Strong HSE record and a firm commitment to environmentally responsible hydrocarbon production\n \n \n ·\n A well-understood existing production base, generating immediate revenue\n \n \n ·\n A material 2P net reserve base of 3.85 mmbbl and a 2C net contingent resource base of 22.96 mmbbl, located across four core assets as assessed by SGS Nederland B.V, and to be included in a Competent Person's Report (\"CPR\"), which will form part of the Admission Document to be sent to shareholders in due course\n \n \n ·\n A commercially attractive programme with the economic results of the CPR describe an NPV10 valuation of €52.8 million from the development and production of the 2P reserve base, assuming, inter alia, capex of €15.7 million for a 3 well programme and facili...