Brookside (ASX:BRK) carries with Continental for full Oklahoma oil

Brookside Energy has partnered up with Continental Resources for full development of the Gapstow oil field, sitting directly south to two of the Brookside collection of operating oil wells in the US state of Oklahoma.

The first Gapstow well produced around 580 thousand barrels of oil equivalent in under a year, and Brookside is now in for a 20.9 per cent interest for seven more Continental-operated wells.

Wells will be drilled fast, soon, and done in a similar wine rack pattern to Continental’s highly successful full field development of nearby Courbet.

Three rigs are expected to begin work this financial quarter and bring the full Gapstow field online simultaneously before Christmas as Brookside moves into full development of its own area of interest.

Brookside Energy Managing Director David Prentice said Continental and its history for efficient and highly successful developments across the rich Anadarko Basin made for an excellent partner.

“I am very pleased to update our shareholders and investors with news of our election to participate alongside Continental on the exciting development in the SWISH AOI and the resulting increase in our production in FY2025 and beyond,” Prentice said.

“Participation in this venture with Continental, consistent with our liquids production focus, will grow our PDP reserve base and add important additional cashflow as we move into our operated SWISH AOI FFD in 2025.

“We look forward to providing further updates on the Gapstow FFD over the coming quarters.”

Brookside further built its position over Oklahoma’s Woodford shale north of Continental’s success late last year and is now set to pay US$2.5 million ($3.8 million) for its share in the sandwiched joint development.

The figure is already accounted for in Brookside’s capital expenditure budget, and the Perth-based energy developer expects revenues from its full field SWISH development to soon be delivering US$51 million ($76 million) in net income.

Brookside predicted the income numbers based on a $US70 price tag for a barrel of crude, now trading closer to the US$80 mark even after a price dip considerable enough to spur US plans to refill its reserves.

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