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Exceeding Pre-Drill Estimates in Early Flow-back
Perth, Western Australia – 24 September 2021 – Brookside Energy Limited (ASX: BRK) (FSE: 8F3) (Brookside or the Company) is pleased to provide shareholders and investors with an update on operations on the high-impact Jewell 13-12-1S-3W SXH1 well (Jewell Well) located in Brookside’s SWISH Area of Interest (AOI) in the world-class Anadarko Basin (Figures 1 & 2).
The Jewell Well has recorded a daily production rate of 1,238 BOE (85% liquids) per day, early in the flow-back and fluid recovery operations, with only approximately 22% of the stimulation fluid recovered.
Oil and (liquids rich) gas production is expected to increase steadily beyond these early rates over the coming weeks (above our pre-drill estimates) in line with our modelled flow-back trajectory.
To date, the Jewell Well has produced approximately 14,800 barrels of oil and 29,500 Mcf of liquids rich gas, with oil trucked to a nearby pipeline terminal and gas transported via pipeline to a DCP Midstream, LP gas processing plant for sale.
The Company will report a peak rate (IP24), as well as IP30 and IP90 rates as these are achieved.
Commenting on the announcement, Brookside Managing Director, David Prentice said:
“Once again we are delighted to report on the early performance of the Jewell Well. These are extremely encouraging results, and to be exceeding our pre-drill estimated flow rates at this early stage of the flow-back process is a strong indicator of the future economic performance of our maiden operated well in the SWISH AOI.
“We are looking forward to bringing further updates on the wells performance as we move forward and achieve a peak rate and ultimately and IP30 and IP90, which are important milestones in terms of our key metrics or rate of return and time to payout.”
Background
Brookside is developing its “core of the core” acreage position in the SWISH AOI located in the highly sought-after Sycamore-Woodford trend in the southern SCOOP Play in the world-class Anadarko Basin. Brookside has embarked on a potential 5-year, 20-plus well development drilling program across its three operated development areas / DSUs (Jewell, Rangers, Flames) that the Company controls in the SWISH AOI to develop a conservatively estimated 11,606,000 net BOE Prospective Resource (best estimate, unrisked).
Prospective Resources Cautionary Statement
The estimated quantities of petroleum that may potentially be recovered by the application of future development projects relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
ASX Listing Rule 5.30 – Further Information
The Jewell 13-12-1S-3W SXH1 Well was drilled in Carter County, Oklahoma and is located within the Jewell DSU (Brookside ~84% Working Interest). The Jewell Well was drilled as an extended (mid) length horizontal well with the lateral portion of the well-bore landed in the Sycamore Formation at a depth of ~7,600 feet. The well was treated via a multi-stage (23-stages) stimulation process with approximately 22% of the total stimulation fluids (~280,000 barrels) recovered so far during the flow-back operations. The well is being flowed back through an open choke to the Company’s production, separation, and tank facilities.
Figure 1. Location map showing Brookside’s three operated SWISH AOI DSU’s
Figure 2. SWISH AOI activity map showing the location of Brookside DSUs
– ENDS –
Authority:
This announcement has been authorised for release by the Board of Directors of Brookside Energy Limited
For further information, contact:
David Prentice
Managing Director
Brookside Energy Limited
Tel: (+61 8) 6489 1600
Omar Taheri
Founder
SparkPlus
Tel: +65 8111 7634
Gracjan Lambert
Executive General Manager Commercial
Brookside Energy Limited
Tel: (+61 8) 6489 1600
Eliza Gee
Director
ASX Investor
Tel: +61 432 166 431
Forward-Looking Statements and Other Disclaimers
This announcement may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions, which are outside the control of Brookside Energy Limited (“Brookside Energy”, or “the Company”). These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal, or regulatory developments, political risks, project delay or advancement, approvals, and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Brookside Energy does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions, or circumstances on which any such forward looking statement is based.
This announcement does not constitute investment advice. Neither this announcement nor the information contained in it constitutes an offer, invitation, solicitation, or recommendation in relation to the purchase or sale of shares in any jurisdiction. Shareholders should not rely on this announcement. This announcement does not consider any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this announcement are not intended to represent recommendations of investments to persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
The information set out in this announcement does not purport to be all-inclusive or to contain all the information, which its recipients may require to make an informed assessment of Brookside Energy. You should conduct your own investigations and perform your own analysis to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this announcement.
To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts, or other representations contained in this announcement. No responsibility for any errors or omissions from this announcement arising out of negligence or otherwise is accepted.
ABOUT BROOKSIDE ENERGY LIMITED
Brookside Energy is a Perth-based ASX, and Frankfurt listed company that generates shareholder value by developing oil and gas plays in the United States, specifically the Anadarko Basin in Oklahoma. The Anadarko Basin is a proven Tier One oil and gas development province with significant existing oil and gas gathering and transportation infrastructure, a competitive and highly experienced oil and gas service sector, and a favourable regulatory environment. Brookside is executing a “Real Estate Development” approach to acquiring prospective acreage in the Anadarko Basin and adding value to it by consolidating leases and proving up oil and gas reserves. The Company then has the option of selling the revalued acreage or maintaining a producing interest. The Company is now set to scale-up its activities and asset base significantly with its operated- interests in the SWISH AOI.
Web http://brookside-energy.com.au
ABOUT BLACK MESA ENERGY, LLC
Black Mesa Energy, a Brookside Energy controlled subsidiary, is a Tulsa-based oil & gas exploration and production company focused on profitable development of petroleum properties located in the Mid-Continent oil province of the United States. Our lean and highly specialized technical and operations team is committed to providing attractive returns for our investors and shareholders by generating and drilling high quality oil and gas prospects. The founders of Black Mesa have worked together for over 30 years at companies they previously founded, including Medallion Petroleum, InterCoast Energy and Brighton Energy. Over the course of their careers, the Black Mesa team has drilled hundreds of horizontal wells and thousands of vertical wells in numerous mid-continent oil and gas basins. In addition to the financial backing from the Black Mesa shareholders, Black Mesa partners with outside investors on larger-scale projects by offering non-operated direct working interest participation.
GLOSSARY
APO WI | After pay-out working interest |
AFIT | After Federal Income Tax |
AOI | Area of Interest |
BBL | Barrel |
BFIT | Before Federal Income Tax |
BOE | Barrels of Oil Equivalent |
BOEPD | Barrels of Oil Equivalent Per Day |
COPAS | Council of Petroleum Accountants Societies |
Development Unit or DSU | Development Unit or drilling spacing unit is the geographical area in which an initial oil and/or gas well is drilled and produced from the geological formation listed in a spacing order. The spacing unit communitizes all interest owners for the purpose of sharing in production from oil and/or gas wells in the unit. A spacing order establishes the size of the unit; names the formations included in the unit; divides the ownership of the unit for the formations into the “royalty interest” and the “working interest”; Only one well can be drilled and completed in each common source of supply. Additional wells may be drilled in a Development Unit, but only after an Increased Density Order is issued by the Oklahoma Corporation Commission. |
Force Pooled | The Oklahoma Corporation Commission is authorized to establish well spacing and drilling units covering any common source of supply of hydrocarbons, or any prospective common source of supply. Once the unit is established, the Commission can force pool the interests of all the owners who own interests in that unit and who have not voluntarily joined in the development of that unit. |
MBOE | 1,000 barrels of oil equivalent |
Mcf | 1,000 cubic feet |
MMBOE | 1,000,000 barrels of oil equivalent |
NPV10 | The net present value of future net revenue before income taxes and using a discount rate of 10%. |
NRI | Net Revenue Interest |
PDP | Proved Developed Producing Reserves |
Pooling Agreements | The pooling agreements facilitate the development of oil and gas wells and drilling units. These binding pooling agreements are between the Company and the operators |
Prospective Resource | Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations. |
PUD | Proved Undeveloped Reserves |
Reserve Categories | These reserve categories are totalled up by the measures 1P, 2P, and 3P, which are inclusive of all reserve types:
|
STACK | Sooner Trend Anadarko Basin Canadian and Kingfisher Counties – oil and gas play in the Anadarko Basin Oklahoma |
SCOOP | South Central Oklahoma Oil Province - oil and gas play in the Anadarko Basin Oklahoma |
SWISH AOI | Description of Brookside’s Area of Interest in the SCOOP Play |
Working Interest | Percentage of ownership in a lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing, and operating a well or unit |
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