12.4 MMBOE reserves are at 31/13/2024 meaning very little if any of the of that number is represented by the volumes the new DSU, which will have ~4 wells drilled on it.
For the new DSU reserves to be booked they need the HBP wells drilled initially so until then , those volumes will be prospective resources, which then are converted in to 2P ( proved and probable) reserves. There should be a high conversion of resources to reserves upon drilling like there was in the original HBP program. Depending on depletion , adjustments etc, with the addition of the new DSU, there is a good chance there will be an increase in the overall BRK net reserve/ resource position at 31/12/2025.
BRK inventory has increased to 19 now, including the 4 wells in the new DSU. Adding 4 wells to the original 15 well inventory should roughly add ~4/15 to the proved undeveloped reserve of ~ 9.5 MMBOE or ~2.5 MMBOE ... although some of the Woodford reserves in the new wells are already included in the Bruins DSU so reserve add will be less. The contiguous nature of the BRK DSU's in the Northern Swish is evident, and one can see Citation is now also emulating the CLR FFD template of extended angled horizontal wells. The Mach resources DSU's in purple are those bought from Scissor Tail in early 2025 and have added another operator of scale into the AOI.
IMO, this is the money page.
If the Caney works then we could probably add 2-3 wells to each DSU if BRK can lease to operate the zone in each DSU. (Should be leasing now one would think) .. If the Simpson group works as well, then right now it's anyone's guess but the prospect of doubling the benches available for development on existing BRK acreage is a mouth watering prospect in terms of potential in ground value add.
Way too early to call as there are way to many if's at the moment, but in terms of the Caney, BRK seem to be in the right area as can be seen from the below study. Red line runs NW of the FMDP though to Rangers.
Just click on " view technical report".. the above chart is on P 28.
The modelling of the Caney vs real development wells such as the Springer field to produce a simulation template is also an interesting read ( a bit technical though)
Cheers
Dan
BRK Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
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