Brookside (ASX:BRK) begin transformational Oklahoma operations
December 13, 2023Brookside Energy has begun the task of monetising its 11.9MMBOE reserves of low cost, high margin and liquids rich oil and gas and will gear up with a transformational four well drilling campaign over its SWISH Area of Interest in Oklahoma’s Anadarko Basin.
With strong cashflow, zero debt, a normalisation of service costs and a rosy outlook on energy prices combined with excellent results from an adjacent development, the Brookside Board decided the time was now, and that sole funding the operation would deliver the best returns to shareholders.
Brookside will be the operator and plan to develop both the prolific Sycamore and Woodford formations in sync within its Flames Drilling Spacing Unit.
First spudding of the quartet is slated for early next year and all four could come online as soon as the third quarter of 2024.
Brookside Manging Director David Prentice said that since the announcement of the inaugural 2P Reserve in April, it had continued to field enquiries from investors on developing the asset.
“Interest in this high-margin, liquids-rich asset has been high, however, access to capital by potential partners has been a key constraint on putting sensible offers in front of Brookside and which adequately capture the outstanding value and upside of the SWISH AOI,” Mr Prentice said.
“Brookside’s balance sheet strength and high level of free cash flow generation has made ‘sole funding’ the FMDP an easy decision with 100% of the financial returns from our production target of an estimated 2,500 BOEPD to now accrue to Brookside shareholders.
“Our decision to expand on our initial share buy-back using the anticipated surge in cash flow highlights our confidence in this strategy.”
The target is forecast Net production growth to 2500 BOEPD by the end of 2024, a figure which would have Brookside standing in the top tier of production for ASX energy juniors and provide the platform to keep developing the Bruins, Jewell, and Rangers DSU’s and continue building up a profile of production.
Map showing the strong performance of both the
Woodford wells (well names ending with HXW) and Sycamore wells (well names ending in HXM)
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