Ann: Annual Report to shareholders, page-4

SUMMARY:

1. Financial Performance (FY2024)

• Sales Revenue: A$46.9 million

• EBITDA: A$18.5 million

• Net Profit After Tax: A$2.83 million (↓ from $16.65 million in 2023)

• Cash & Receivables at Year-End: A$19.8 million

• Debt Facility: Secured a US$25 million credit facility with UMB Bank

• Share Price (year-end): AUD $0.435 (post-consolidation)

• No dividends declared during the year

⛽ 2. Production & Reserves

• Total Net Production: 525,456 BOE

• Record Q4 Output: 2,459 BOE per day (↑ 129% QoQ)

• 2P (Proved + Probable) Reserves: 12.35 MMBOE (↑ 6.8%)

• 1P (Proved) Reserves: 4.98 MMBOE (↑ 21.8%)

• PDP (Proved Developed Producing): 2.65 MMBOE (↑ 50.1%)

• PDP Reserves Replacement: 268% of 2024 production

• Finding & Development Cost (PDP): US$16.40/BOE

• Reserve Composition: 58% liquids-weighted

3. Development Strategy

Flames Maroons Development Plan (FMDP)

• 4 horizontal wells: Fleury, Maroons, Iginla, Rocket

• Drilled in 115 days (ahead of 136-day plan)

• Delivered under budget

• IP30: 3,761 BOEPD (80% liquids)

• Cumulative Production: 333,065 BOE

Gapstow Full Field Development (FFD)

• Non-operated (by Continental Resources)

• Brookside’s WI ~3%, NRI ~2.24%

• Estimated 150 BOEPD net contribution over 2 years

• $2.5 million capital funded via cash flow

2025 Growth Plan

• Drill three 10,000-ft lateral wells

• Target 20% increase in annual net production

• Add a fifth DSU in the SWISH AOI

• Expand leasehold inventory in the Anadarko Basin

• Explore listing on NYSE American

⚠️ 4. Risk Management

Brookside identifies and manages a range of risks:

Operational Risks

• Drilling failures, mechanical breakdowns, weather delays, human error

• Environmental incidents and regulatory compliance

Market Risks

• Oil & gas price volatility

• Exchange rate fluctuations (USD ↔ AUD)

Strategic & Financial Risks

• Capital access for new development

• Joint venture dependency (e.g., Continental Resources)

• Execution risk in drilling plans

• Title and permit maintenance in U.S. jurisdictions

Regulatory Risks

• U.S. environmental laws, particularly around hydraulic fracturing

• Sovereign risk (though operations are solely U.S.-based)

Insurance

• Industry-standard insurance in place, but may not cover all liabilities

5. ESG & Compliance

• No breaches of environmental regulations reported

• Strong safety record (zero HSE incidents during FMDP)

• Ongoing commitment to responsible operations and regulatory compliance

‍ 6. Governance & Leadership

• Chairman: Michael Fry

• Managing Director: David Prentice

• Board strengthened with Chris Robertson joining as Non-Executive Director

• Executive remuneration aligned with shareholder value via STI & LTI plans (using ROCE and TSR metrics)

*GPT4o