13th Jan 2023 10:52
(Alliance News) - Beacon Energy PLC on Friday said its half-year loss narrowed while its interim chief executive officer will become CEO on a permanent basis.
The Isle of Man-based upstream oil and company with operations ranging from Europe, Africa to east Asia said pretax loss in the six months that ended October 31 narrowed significantly to USD951,000 from USD2.5 million a year earlier.
This is because administrative expenses excluding asset evaluation and operating expenses narrowed to USD877,000 from USD2.3 million.
On December 16, Beacon Energy entered into a conditional sale and purchase agreement with Tulip Oil Holding BV and Deutsche Rohstoff AG for Rhein Petroleum GmbH. It said it would provide the sellers new ordinary shares in Beacon Energy equalling a 33% interest and that the transaction constituted a reverse takeover.
This coincided with announcing it appointed Larry Bottomley as permanent chief executive officer, effective immediately.
"We are very excited about the proposed transaction which, if successful, will underpin your company with cash flow, proven reserves and resources, and an active work programme designed to create long-term value for Beacon's shareholders," said Beacon Energy Non-Executive Chair Mark Rollins, addressing shareholders.
"We very much see the proposed transaction as a first step in our strategy to build a material international upstream oil and gas business with a focus on cash generative assets and those with the potential to add significant value in the short to medium term."
Rollins added it would provide updates on its progress on the proposed reverse takeover over the course of the year.
The proposed transaction is subject to the issue of a new AIM admission document for trading in London. As a result, shares in Beacon Energy are not currently being traded in London.
By Greg Rosenvinge, Alliance News reporter
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