ASX ANNOUNCEMENT: BRK
Brookside Continues Push Into the STACK
Brookside holdings in the core of the STACK Play expanded to ~300 acres1 Acreage secured within the highly productive over-pressured volatile oil window Productivity of core STACK acreage further reinforced with the release of initial production data on two recently drilled and completed extended-reach wells that delivered very high initial (24-hour) rates of 3,700 Boe per day per well Industry type curve2 for extended-reach wells delivers target EUR of 1,700 Mboe (58% oil) and generates a pre-tax rate of return in excess of 70% at current pricing Brookside’s current STACK acreage is well down the path to supporting the Company’s initial target of 10 Mmboe3 in proved reserves Initial development of the expanded acreage position fully funded via the Drilling Joint Venture with Merchant Funds Management Pty Ltd Brookside STACK leasing campaign ongoing
Brookside Energy Limited (Brookside or the Company) is pleased to provide an update on progress, as it’s wholly owned subsidiary BRK Oklahoma Holdings, LLC (BRK Oklahoma) continues to build a position in the core of the STACK Meramec Play (STACK Play) in Oklahoma.
BRK Oklahoma has, through its ongoing leasing campaign, expanded it’s holdings in the core of the STACK Play to ~300 acres1. Importantly, this acreage is located within the highly productive over-pressured volatile oil window in Blaine County, Oklahoma.
This part of the STACK Play continues to deliver outstanding results with experienced and well funded tier one operators including; Continental Resources, Inc. (NYSE:CLR), Marathon Oil Company (NYSE:MRO) and Devon Energy Corp. (NYSE
VN), already successfully testing increased drilling density pilots in and around Brookside’s core focus area.
The productivity of core STACK acreage was again reinforced last week with the release of initial production data on two recently drilled and completed extended-reach wells that delivered very high initial (24-hour) rates of 3,700 Boe per day per well (70% oil).
A current industry type curve2 for a single extended-reach horizontal well delivers a target EUR of 1,700 Mboe (58% oil) with 380 Mboe produced in the first 12-months. This well generates a pre-tax rate of return in excess of 70% at current pricing (based on an estimated completed well cost of US$9 million). Based on this type curve and the recent successful increased density pilots, Brookside’s current STACK acreage is well down the path to supporting the Company’s initial target of 10 Mmboe3 in proved reserves.
Importantly, the initial development of this expanded acreage position is fully funded via the recently announced Drilling Joint Venture between BRK Oklahoma and Merchant Funds Management Pty Ltd. The unique structure of this joint venture enables Brookside to capture value and deliver growth through the addition of cash flow, oil and gas reserves and importantly substantial future development potential from proven undeveloped locations without dilution that would come from equity capital at this point in the Company’s life.
Finally, the current leasing campaign is ongoing and as the location of the acreage and the contractual terms of the leases are commercially sensitive at present, the Company will make a more fulsome disclosure when the current campaign is finalised and the final acreage acquisition opportunities have been identified and secured.
