Thought I would put together an easy to read / understand summary of BRK for new investors, potential investors and even existing investors who don't have much of a clue about BRK (myself included)...
I bought in at 2 c (now up almost 50%), but honestly, until tonight, I knew nothing about the company... As per usual, I follow tips on the DT thread by posters I trust, buy a stock, and research it later... I call this BNRL (Buy Now Research Later) and I would NOT recommend people do this... I just happen to get lucky because I follow the right people..
Disclosure, until my research tonight on BRK and another similar stock I was fortunate enough to pick up at 0.006, all I knew about oil was that I use it cook my dimsims, put some in my car every six months, and it gets rubbed all over my body every so often when I get lucky
(Put simply, I am no expert on oil stocks) hence the reason I like to do a bit of research on new stocks I own and translate it simple English... Please feel free to add to my summary if I have missed out on anything...
Long Term Investors please ignore this post as it would probably seem like learning ABC, 123 back in primary school hehe
Overview of Company:
Brookside Energy Limited is an Australian publicly held company listed on the Australian Securities Exchange (ASX:BRK). The Company was reinstated to official quotation on the ASX on 5 August 2015, following completion of the Company’s recapitalisation.
Brookside has established deep and valued relationships in the oil and gas sector over the last 10 years through its successful activities in the industry focused on the mid-continent region of the United States.
Brookside’s goal is to build value per share through a disciplined portfolio approach to the acquisition and development of producing oil and gas assets and the leasing and development of acreage opportunities.
These are the 3 pillars of BRK in delivering results, profits ad sustainable growth
Let's look at the most exciting thing about BRK:
Anadarko 'Super' Basin:
BRK “Own part of a World-Class Oil and Gas Resource Play”
The Anadarko Basin is a geologic feature covering approximately fifty thousand square miles primarily in west-central Oklahoma.
Significant oil and gas discoveries have been made throughout this region, including the Hugoton-Panhandle Gas Field of Kansas, Oklahoma, and Texas in the 1920’s and numerous others in Oklahoma, such as the West Edmond Field, the Union City Field, and the Elk City Field, after 1950.
The Anadarko Basin is recognised as a heavyweight among United States shale regions in terms of oil and natural gas production. The basin has a long history of oil and gas production with current production estimated to be in the order of
600,000 barrels of oil equivalent per day.
The region’s current active rig count of 129 is behind only the Permian Basin in Texas, with the Anadarko Basin recognised as sitting among the top most productive oil and gas regions based on EIA data... WOW
The majority of the activity within the Anadarko Basin is centred on the STACK (Sooner Trend Anadarko Canadian and Kingfisher) and SCOOP (South Central Oklahoma Oil Province) plays of Oklahoma.
Current estimates point to annual drilling and completion capital expenditure across the STACK and SCOOP Plays at
in excess of US$3.0 billion. This investment is driven largely by the productivity of the wells being drilled in these plays, with IHS estimating a break-even point of under US$30 per barrel for the top producing wells in the STACK Play, which is comparable to wells drilled in the top Permian plays.
Within our SCOOP play is the "SWISH AOI" in the southern part of Scoop... SWISH includes 3 DSUs (Drilling Space Units), namely, Jewell, Flames and Rangers, with Jewell being the most anicipated of all...
And it has recently been announced that (1 April 2021), in preparation for the drilling of the much anticipated high-impact Jewell 1-13-12 SXH well (Jewell Well) in Brookside’s SWISH Area of Interest (AOI) in the world-class Anadarko Basin, BRK's controlled subsidiary, Black Mesa Energy, LLC (Black Mesa) has executed an IADC Drilling Bid Proposal and Daywork Drilling Contract with Oklahoma based Latshaw Drilling Company (Latshaw), one of the largest and most successful privately held drilling contractors in the
United States. The contract is to supply and operate Latshaw Rig 14 for the drilling of the Jewell Well, under the supervision of the Black Mesa team.
So they have secured the Drill Rig, and it will be mobilised to the multi-well all-weather pad in Carter County (the Jewell Drilling Spacing Unit (DSU)) as soon as possible
- The pad works are nearing completion.
Very excited about this
As
@stevenjd so eloquently put it, "he market discovers that we have a 20 well inventory , that have extreme high chance of success, exploitation, not exploration 2000? bopd per well. Makes the other oilers and their wild cats look like chumps"
I also must mention that I do like the below chart comparison with 88E
I think the above is quite self-explanatory
BRK's Pad Works are nearing completion for the Jewell Well, and the Rig essentially on the way which will enable drilling ASAP
At current SP, this is still lie being invested in 88E at 0.006... So damn cheap considering the potential here!!
And Announcements should start rolling in when the Rig is onsite, the Rig is setup, and the Spud confirmations of course
And remember guys / gals,
Exploitation, NOT Exploration!!
I could actually go on all night and look into the other two pillars, but this is suppose to be a summary (very simplistic)...
And I must say that I like the composition of the management team
Our MD, David Prentice, successfully grew Red Fork Energy to a $300 Mil MC
David is a senior resources executive with 25 plus years domestic and international experience. David started his career working in commercial and business development roles within the resources sector working for some of Australia’s most successful gold and nickel exploration and mining companies. During the last 12 years, David has gained international oil and gas exploration and production sector experience (with a specific focus on the Mid-Continent region of the United States) working in both executive and non-executive director roles with Australian publicly traded companies. David is Managing Director of Brookside Energy Limited, Chairman of Lustrum Minerals Limited and a non-executive director of Black Mesa Production, LLC and Comet Resources Limited.
Red Fork Energy was an oil and gas exploration and production in Oklahoma in the United States. The Company’s landholdings were divided into three project areas within Oklahoma: Osage, Eastern Oklahoma and West Tulsa. Red Fork Energy changed its name to BRK on 23/06/2015. David was MD of this company as from 04/05/2007. Red Fork produced 13,273 barrels of oil in the three months to June 2012, while also producing 129.8 million cubic feet of gas.
Quite interesting if you look into the management successes, but I will leave that for your own research
Hope this very simplistic summary can help some new investors ... Just writing it has helped me understand the company and my investment...
Looking forward to getting the Rig onsite, all of the other wells including Ranger and Flames for future drilling, and not to mention the other two pillars of the company,
producing property acquisitions and
Land and Leasing
Good luck in your investments,
Cari
(20min delay)