Beacon Energy (AIM:BCE) has been told by LNEnergy that equipment for well testing at the Colle Santo site will shortly be mobilised, the AIM-listed gas developer said.
The testing covers two existing wells, MP-1 and MP-2, ahead of a five-day production test expected to start in the coming weeks.
Initial integrity tests completed in August confirmed both wells hold integrity, with wellhead pressure recorded at 121 barg on each, in line with expectations.
A stuck valve prevented some checks on MP-1, which will now be carried out during the October testing programme.
Chief executive Stewart MacDonald said Colle Santo is a fully appraised 73 billion cubic feet gas field with eight well penetrations, seven of which have flowed gas to surface.
MP-1 and MP-2 were drilled and tested in 2007 and 2008 at a combined rate of 20 million cubic feet per day, well above the 11 million cubic feet per day planned for production.
"We look forward to the outcome of the 5-day production test around the end of October", MacDonald said.
Beacon holds an indirect stake of approximately 24% in LNEnergy, rising to approximately 48% if LNEnergy Italy secures the Production Concession for Colle Santo, equivalent to a 43.2% indirect interest in the asset.
The production test outcome is expected around the end of October.
News Intelligence what this means for the company
Beacon Energy is mobilising equipment for a five-day production test on two wells (MP-1 and MP-2) at its Colle Santo gas field, with results expected by late October. The wells passed integrity checks in August at 121 barg pressure each, confirming the field's technical readiness; the upcoming test will validate production rates ahead of development decisions.
The test is a gate event for Colle Santo progression, but does not change the underlying economics: RPS Energy's NPV10 estimates of €37.6m–€52.9m attributable to Beacon already priced in successful production. Results in line with the 2007–2008 baseline (20 mmcf/d vs. 11 mmcf/d planned) would confirm the field's viability; material underperformance would raise development risk.
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