Brookside pumping more oil and gas cash

Brookside Energy has banked additional revenues of around US$4.3 million since flowback and testing began last month on its four new wells at its flagship SWISH Project in Oklahoma’s prolific Anadarko Basin.

Four new wells at Brookside’s project in Oklahoma will bring in around US$4.3 million in early gross revenue. Pic: Getty Images

• Four new Flames Maroons Development Plan (FMDP) wells at Brookside Energy’s SWISH Project in Oklahoma produce around 80,000 barrels of oil equivalent (BOE), at 87% liquids, in the first weeks of flowback and testing

• The production yields significant early gross revenue of approximately US$4.3 million ($6.4 million), with more sales ahead

• Combined daily production reaches ~3900 barrels of oil equivalent per day (BOEPD), with less than 6% of stimulation fluid recovered

Special Report: Brookside Energy has banked additional revenues of around US$4.3 million ($6.4 million) since flowback and testing began last month on its four new wells at its flagship SWISH Project in Oklahoma’s prolific Anadarko Basin.

Just a couple of weeks after Brookside’s (ASX:BRK) got a big thumbs-up for a major rerate from MST Access, the company has announced its cumulative production to date from the new development wells is around 80,000 BOE.

Part of the Flames Maroons Development Plan (FMDP) at the SWISH project, the wells’ combined daily production has reached approximately 3900 barrels of oil equivalent at 87% liquids.

The FMDP is a multi-well drilling program targeting the highly productive Sycamore Lime and Woodford Shale formations in the SCOOP area of Oklahoma’s southern Anadarko Basin. Three of the wells were drilled from the Sanford Pad and one was drilled from the Flames Well pad.

Strong start to life

The wells, especially the three Sanford Pad wells, are yielding significant volumes despite being primarily in the slower-clearing Woodford Shale. Early production from the Rocket Well in the Sycamore formation has also been encouraging with strong early volumes.

Brookside’s Managing Director, David Prentice said: "We are very pleased with the early results from flowback and testing of our first pad development in SWISH.

“The production rates we are seeing from both the Woodford Shale and Sycamore formations are very encouraging and speak to the quality of our acreage.

“Generating approximately US$4.3 million in gross revenue so early in the flowback and testing phase highlights the potential of these wells to deliver strong, sustained production over time.

“We look forward to reporting peak and longer-term production rates as these wells continue to clean up and produce over the coming weeks and months.

“The FMDP will be the first of many planned step changes in the growth of Brookside’s production, revenue and net income, contributing to Brookside’s success for years to come.”

The sweet spot

With flowback and first sales already established, the FMDP is forecast to produce 715,000 BOE (78% liquids) for Brookside in its first year of operation with average production boosted to 2300 BOEPD (barrels of oil equivalent per day).

That’s set to bolster revenue to US$70m ($103.65m) and net income to US$26.6m ($39.4m) in FY2025.

Revenue over the life of the wells is projected to be US$164 million ($242.8m) with net income of US$58 million (A$85.8 million) from 2,100,000 BOE Net (~60% liquids).

This article was developed in collaboration with Brookside Energy, a Stockhead advertiser at the time of publishing.

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

Originally published as Brookside pumping more oil and gas cash