27th Jun 2025 14:25
(Alliance News) - Beacon Energy PLC on Friday said it was in discussions for a reverse takeover of a European gas project after "an extremely challenging" year.
The Douglas, Isle of Man-based oil and gas mining company became a cash shell back in January, after selling its Germany subsidiary, Rhein Petroleum GmbH, due to "poor production performance".
Beacon Energy's pretax loss widened to USD2.6 million in 2024, from USD149,000 million the year prior. Loss per share widened to 0.11 US cents from 0.04 US cents in 2023.
"During the year and subsequent period, the board has worked tirelessly to stabilise the company's financial position and deliver on its strategy which is to pursue the acquisition of value enhancing opportunities to develop and grow a self-funding upstream oil and gas company," commented Non-Executive Chair Mark Rollins.
Beacon Energy has signed a non-binding heads of terms agreement to acquire "an onshore gas development asset located in Europe". Though it has entered an exclusivity period, the firm noted there was no guarantee of closing the deal, and did not provide further details of the target asset.
Since the potential acquisition would be a reverse takeover, Beacon Energy's shares were suspended from AIM trading on Friday. If a takeover deal is not struck by July 6, the shares will remain suspended. Before Beacon Energy had previously planned for suspension to come into effect on July 7.
The company must make a reverse takeover by January 6 to avoid cancellation from London's junior market. Alternatively, Beacon Energy would need to convert to an investing company.
Beacon Energy shares are currently suspended; they were last quoted at 0.0040 pence in London.
By Holly Munks, Alliance News reporter
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