Brookside Energy hits sweet spot of record production and net income

Brookside Energy has announced record production and net operating cash flow from its Oklahoma project in the December quarter.

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• Brookside Energy delivered record net production of almost 2,500 BOE per day in the past quarter – a 129% increase quarter-on-quarter

• The strong performance generated $21.1 million in cash receipts from sales, with net operating cash flow surging 667% quarter-on-quarter to $12.2 million

• The Q4 successes allow Brookside to pursue its 2025 strategy of prioritising inventory growth and targeted drilling in Oklahoma’s prolific Anadarko Basin

Special Report: Brookside Energy has announced record production and net operating cash flow from its Oklahoma project in the December quarter, allowing the company to pursue its goals of further inventory and production growth in 2025.

The company’s standout December Quarterly saw net production up 129 per cent to 2,459 barrels of oil equivalent (BOE) per day and net operating cash flow rocketing 667% to $12.2 million.

The record quarter-on-quarter net production and cash flows, plus $3.1 million of additional inflows, make a significant dent in the $19 million capital expenditure on Brookside (ASX:BRK)’s multi-well Flames Maroons Development Plan (FMDP) project.

Thanks to the strong operational performance, the company ended Q4 with a strong cash balance of A$11.3 million.

This puts the Australian junior in a sweet spot to pursue its 2025 strategy of growing inventory and completing more targeted drilling.

Plans include three new 10,000-foot lateral horizontal wells in the SWISH Play. The first well is set to spud in Q1 2025, with pre-spud activities, such as pad selection, surface agreements and regulatory approvals, already underway.

Under budget, ahead on time

Brookside successfully completed its ambitious FMDP initiative ahead of its schedule and under budget. The total capex totalled approximately A$36 million net to the company, which was a significant ~15% saving against the initial budget.

This investment was mainly funded via cash reserves and operational cash flow, reflecting BRK’s discipline and efficiency in executing large-scale projects.

With the FMDP wells now operational, group net production reached a record 226,189 BOE during the quarter, with liquids at 67%, equating to a 129% increase quarter-on-quarter.

This record output enabled the company to meet its fourth-quarter production forecast, with net production averaging 2,459 BOE per day.

Brookside increased its average working interest in the FMDP wells over the quarter to approximately 70%, giving it a larger share of production revenue and lifting profitability.

SWISH Play wells

The Brookside-operated SWISH Play wells also recorded strong growth, with gross production hitting 392,435 BOE for the quarter, bringing cumulative production to 2.5 million BOE.

This was despite the Jewell and Flames wells undergoing recovery to pre-shut-in levels after expected temporary shut-ins during the quarter. These measures were undertaken to prevent interference from Continental Resources’ Gapstow full-field development (FFD) operations.

But with Continental’s Gapstow delivering strong initial production rates and sales during the quarter, associated cash receipts will flow through to Brookside in subsequent quarters.

Brookside is participating as a non-operator in seven wells within the Gapstow FFD with a cumulative working interest of 20.9%.

Production is expected to contribute around 150BOE/per day (70% liquids) net to Brookside over an initial two years and lift its proved developed producing (PDP) reserves.

Adding barrels

Managing director David Prentice said: “We have the capacity to repeat our clever early prospecting work, and now we've got the capital to be able to do that. We’re certainly excited to be in a position to look at adding opportunities and more barrels down the track.

“The strategic initiatives we have outlined for 2025 reflect our ongoing commitment to disciplined growth and value creation within the Anadarko Basin.

“Our focus on maintaining a robust balance sheet, aligned with our capital allocation strategy, ensures we can pursue these opportunities responsibly while remaining flexible to market conditions.

“With strong production growth anticipated and additional inventory developments already underway, we are confident in our ability to deliver sustainable returns for our shareholders.”

To tap into to significant interest from US investors Brookside has been advancing its preparations to list on the New York Stock Exchange, while maintaining its primary ASX listing.

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 Energy hits sweet spot of record production and net income