Brookside Energy (ASX: BRK) builds reserves base on proven well performance

Brookside Energy Managing Director and Chief Executive Officer David Prentice spoke with MarketOpen to answer key investor questions in relation to the Company’s FY2025 reserves certification and the underlying drivers of growth across its SWISH acreage position in the Anadarko Basin.

The update confirmed Total Proved plus Probable Net Reserves of 12.52 MMBOE, alongside increases in Proved and Proved Developed Producing categories, supported by the performance of operated wells.

The discussion focused on how this performance is translating into booked reserves, how capital is being deployed, and what the results indicate about the reliability of the Company’s development model as it continues to progress its acreage position.

What specifically drove the conversion into proved reserves, and how repeatable is this across the remaining inventory?

Proved reserves growth is being driven by the performance of our operated wells. As those wells produce in line with expectations, that data supports the movement of volumes into higher-confidence reserve categories.

This is execution-led rather than assumption-driven. We are applying a consistent development approach across our SWISH acreage, where geology and well design are broadly comparable.

While individual well results can vary, the consistency of outcomes to date supports repeatability across our remaining inventory.

How sustainable is the current reserves replacement ratio under your existing development cadence?

Our reserves replacement exceeded production across PDP, 1P and 2P categories, reflecting the contribution from new wells and the conversion of performance into booked reserves.

Under our current development cadence, we expect this to be sustainable in the near term, supported by consistent execution and a substantial inventory of undeveloped locations.

Maintaining a reserves replacement ratio above 100% allows us to offset production declines while continuing to grow the asset base.

With growth driven by well performance rather than assumptions, how has the development risk profile shifted?

As a greater proportion of reserves are supported by producing wells, subsurface and development risk has reduced.

What was previously more interpretive is now increasingly supported by operating data, improving confidence in both drilling outcomes and capital allocation.
Risk is not eliminated, but it is being reduced as more wells are drilled and perform in line with expectations.

How are you prioritising capital between drilling, reserves conversion, and production growth going forward?

Our capital allocation is focused on disciplined drilling that drives production growth, with reserves conversion and cash flow following from that activity.

These are not competing priorities. Drilling establishes production, production supports reserves bookings, and both underpin value creation.

We retain flexibility to adjust activity levels in response to commodity prices while continuing to progress our inventory over time.

Execution anchored to performance, pathway defined by inventory

The development model for Brookside Energy is grounded in observed well performance, with each stage of activity supported by operating data.

With a defined inventory of future drilling locations and a consistent approach to execution, we are positioned to continue converting capital into production and reserves while maintaining alignment between growth and asset quality.

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