Beacon Energy PLC (AIM:BCE) shares traded lower in Monday’s early deals after revealing that efforts to resume drilling on the Schwarzbach-2 well, in Germany, requires a sidetrack.
The company, in a stock market statement, said that following the successful recovery of a stuck drill bit the deeper part of the well was found to be ‘unsuitable for onwards drilling’, so the team is now carrying out a deviated sidetrack from an upper section of the well bore.
It nevertheless expects to reach the well’s target depth during the course of this week, with results to follow accordingly.
"We believe the fishing operation degraded the quality of the deeper part of the 12¼" hole and felt it prudent to undertake a mechanical sidetrack to ensure that we can fully evaluate the primary objectives and complete this well as a producer,” said Beacon chief executive Larry Bottomley.
“This causes an additional small delay in completing the SCHB-2(2.) development well as we maintain our focus on delivering a material increase to the company's production," he added.
In London, Beacon shares dropped 12.7% to change hands at 0.072p each valuing the micro-cap oil and gas firm at just under £8.5 million.