Ann: Brookside to Participate in Gapstow Full Field Development, page-8

Analysis from the Wolf of Wall Street:

Title

• Company: Brookside Energy Ltd.
• Stock Ticker: ASX: BRK
• Document Title: News Release - Brookside to Participate in Gapstow Full Field Development
• Date: May 8, 2024
• Total Pages: 5

Summary

Brookside Energy Ltd. announced its participation in the Gapstow Full Field Development (FFD), a multi-well oil and gas drilling project operated by Continental Resources. This development aims to replicate the success of a previous project in the region, targeting the Sycamore Lime and Woodford Shale formations. Brookside will participate in seven wells, contributing an estimated net production of 150 BOEPD to its reserves.

Highlights

• Continental Resources is replicating a prior successful drilling project with a similar Gapstow FFD, targeting two formations.
• Brookside will have a 20.9% cumulative working interest in seven wells at a net cost of $2.5 million, already budgeted for 2024.
• The project will commence drilling with three rigs this quarter, with production expected to start simultaneously in the December quarter.
• Brookside anticipates net production of 150 BOEPD over two years, boosting reserves and cash flow.

Positives

• Strong production outlook with an estimated 150 BOEPD over two years.
• Increases Brookside’s PDP reserves and provides incremental revenue.
• The development is already accounted for in the company's 2024 capex budget.
• Partnership with Continental Resources provides access to a proven operator with significant regional expertise.

Negatives

• No major negatives identified in the report.

Key Dates

• Drilling: Current quarter
• Production Start: December quarter of 2024

Alerts

• The report contains better-than-expected news with increased production potential and partnership with a reputable operator.

Sentiment: Buy

Disclaimer:
This analysis is not financial advice. Please consult a financial advisor before making any investment decisions. Use this information for research and educational purposes only.