Brookside eyes fresh upside in emerging SWISH sub-plays

Brookside Energy has flagged two newly emerging sub-plays within its SWISH Area of Interest in Oklahoma’s Anadarko Basin.

Brookside Energy has flagged two newly emerging sub-plays within its SWISH Area of Interest in Oklahoma’s Anadarko Basin.Brookside Energy has flagged two newly emerging sub-plays within its SWISH Area of Interest in Oklahoma’s Anadarko Basin. Pic: Via Getty Images

Special Report: Brookside Energy’s SWISH Area of Interest (AOI) within the world-class Anadarko Basin has had a fresh boost to its upside appeal thanks to the identification of two newly emerging development opportunities.

• Industry activity has identified two new sub-plays in Brookside’s SWISH area of interest in Oklahoma, driven by horizontal drilling success in previously untapped zones
• Brookside is monitoring results closely and could expand into the new zones as commercial viability is confirmed
• The Anadarko Basin’s existing infrastructure offers cost and speed-to-market advantages

SWISH is in the southern part of the of the Anadarko Basin, in the SCOOP (South Central Oklahoma oil province) area, where larger American companies have now followed in Brookside’s steps.

The potential of two new sub-plays has been highlighted by recent industry activity in the prolific oil and gas region, particularly the targeting of previously underdeveloped zones using modern horizontal drilling and completion techniques.

Encouraging early results from scout drilling support the view that these formations can yield commercial production when developed with the latest generation horizontal wells.

Positioned for opportunities

With its strategic acreage position in the SWISH AOI, Brookside (ASX:BRK) is closely monitoring this activity. As part of its low-cost, high-margin development strategy, it will potentially expand its development program into the emerging zones as the plays mature and early commercial success is confirmed.

Oklahoma’s largest and most successful independent E&P company, Continental Resources, is actively advancing these plays, leading a wave of renewed interest in what is already some of the most sought acreage in this part of the Anadarko Basin.

These developments further enhance the appeal of the region’s “stacked pay” potential — a key attribute of leading resource plays where multiple hydrocarbon-bearing formations can be accessed from a single surface location, significantly improving capital efficiency and long-term recovery.

Managing director David Prentice said: "This is an exciting development for Brookside as we continue to unlock value across our SWISH acreage.

“The identification of these new sub-plays provides additional upside potential and reinforces the Anadarko Basin’s position as a premier onshore oil and gas province.

“We’re watching the progress closely and positioning ourselves to capitalise on these new opportunities."

In addition to compelling geology, Brookside says this portion of the Anadarko and Ardmore Basins offers excellent access to markets, with extensive existing oil and gas pipeline infrastructure, gas processing capacity, and refining facilities.

These advantages are critical in terms of reducing development costs, enhancing pricing and accelerating speed to market.

Spudding to sales

News about the sub-plays closely follows Brookside announcing the first oil and gas sales from its Bruins Well within its SWISH acreage earlier this month – and just 14 weeks after it was spudded.

Prentice said: “Reaching first sales from the Bruins Well just 14 weeks after spud is a tremendous result — especially given it was delivered safely, on budget and on schedule.

“This kind of execution continues to set our team apart. Bruins is our ninth operated well in the SWISH Play and marks another strong step forward as we continue to execute our strategy to grow production, build scale and return capital.”

The company says flow-back and early production data will be monitored closely over coming weeks, with initial production results to be reported once stabilised rates have been established.

Brookside has been a standout performer in the competitive American O&G sector with low operating costs of ~$9 per barrel of oil equivalent (BOE).

That’s backed by robust reserves and a strong cash position which stands ready to take advantage of the inevitable recovery in the energy sector.

The company recently reported a 50% increase in Proved Developed Producing (PDP) reserves to 2.65 million BOE, with a reserve replacement ratio of 268% against its FY24 production of 525,456 BOE showing how much upside remains at the project.

BRK finished the March quarter with A$12.68 million cash, ahead of first cashflow this quarter from the opening of its ninth SWISH well at Bruins Well.

Things are moving in a positive direction on the corporate front as well.

Brookside is aiming to capitalise on the strong American interest in the area and O&G sector in general by listing on the New York Stock Exchange and is working hard to achieve this milestone as soon as possible.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Brookside eyes fresh upside in emerging SWISH sub-plays