Beacon Energy readmitted to trading after acquiring stake in LNEnergy
Beacon Energy PLC was readmitted to trading on the AIM on Friday as it completed the acquisition of an indirect interest in LNEnergy, a small-scale liquefied natural gas company developing the Colle Santo field in central Italy, completing its planned reverse takeover.
The Isle of Man-based energy company acquired a 24% indirect interest in the field, wholly owned by LNENergy’s Italian subsidiary. It will acquire a further 24% upon the award of the product concession for the asset, which received a positive environmental impact assessment from Italy’s environment ministry in January.
Reabold Resources PLC will remain the largest ultimate beneficial owner of the asset through its shareholding in Beacon Energy.
Two wells have already been drilled and completed at the side and are awaiting regulatory approval to start operating. The field, located in the Abruzzo region, is one of the largest onshore proved undeveloped gas accumulations in Western Europe, and was first discovered in the 1960s.
It has estimated gross proved plus probable reserves of 73.3 billion standard cubic feet, worth €61.7 million post-tax on a 100% working interest basis, according to the oil and gas consultancy firm RPS.
A near-term work programme has been submitted to the Italian government for approval, with a final investment decision expected in mid-2026.
Beacon’s board considers the asset to be ‘commercially and economically attractive’, as well as ‘substantially derisked’ thanks to the existence of the flow-tested wells.
Once accounting for the second acquisition financed by an equity raise, Beacon’s total 43% interest would equate to a proven plus probable post-tax interest of €26.6 million, along with a pre-financing free cash flow of approximately €10 million per year by 2028.
LNEnergy Srl, LNEnergy’s Italian entity, has also entered an offtake and financing agreement with an unspecified ‘leading’ enenrgy wholesaler and distributer, securing additional capital to fund well service and integrity tests to be conducted before the final investment decision.
Chief Executive Officer Stewart MacDonald said: ‘Completion of our strategic investment in LNEnergy marks a transformative step for Beacon, providing the company exposure to a material European gas development with proven reserves, a clear pathway to production and a strong pipeline of value catalysts over the next 18 months’.
Beacon Energy shares were trading at 4.60 pence each on Friday morning in London following the announcement.
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