Ann: Quarterly Activities and Cashflow Report - March 2025, page-2

*Here is a detailed summary and forward outlook of Brookside Energy’s Q1 FY25 performance based on the March 2025 quarterly report:

Summary of Q1 FY25 (Ended 31 March 2025)

Operational Highlights

Category	Details
Production (Net)	172,762 BOE (56% liquids), down from 226,189 BOE in Q4 FY24
Daily Net Production	1,920 BOE/day
Operated Production (Gross)	273,838 BOE (63% liquids)
Cash Receipts	A$18.1 million
Operating Cash Flow	A$4.55 million
Cash at Quarter End	A$12.7 million (↑ from A$11.3m in Q4)
Investing Outflows	A$5.6 million, mainly into SWISH Play & Bruins Well
Gapstow Wells	27,500 BOE net to BRK in first 90 days (IP90 avg 1,792 BOE/well)
Reserves Growth	PDP: ↑50% to 2.65MMBOE; 1P: ↑22%; 2P: ↑7% to 12.35MMBOE
New Well – Bruins	Drilled in 30 days, TD 16,718 ft; completion scheduled Q2 FY25

Financial Overview

Metric	Q1 FY25	Q4 FY24
Sales Revenue	A$18.1m	A$21.05m
Operating Income	A$4.55m	A$12.16m
CAPEX & Other Outflows	A$3.09m	A$15.92m
Net Cash Flow	+A$1.33m	-A$2.36m
Exchange Rate Impact	-A$134k	+A$1.4m

Key driver of reduced production was a natural decline rate and the timing of revenue recognition from Gapstow wells (sales recognised in Q2).

Reserve Summary (Effective 01 Jan 2025)

Category	BOE	% Change
PDP (Proved Developed Producing)	2.65 million	↑ 50.1%
1P (Total Proved)	4.98 million	↑ 21.8%
2P (Proved + Probable)	12.35 million	↑ 6.8%

PDP replacement ratio = 268%, meaning Brookside more than doubled its 2024 output through reserve growth.

Hedging

• Gas: 60,000 MMBTU/month at US$4.25 (Mar–Oct 2025)

• Oil: 7,800 barrels/month at US$62.73 (Apr–Sep 2025)Aimed at insulating Bruins flush production from volatility.

Forward Outlook (Q2 FY25 and Beyond)

Near-Term Catalysts

• Bruins Well Completion & Flowback (Q2): Expected to boost production materially (76% WI to BRK).

• Gapstow Revenue Recognition (Q2): Sales from Gapstow (27.5k BOE net to BRK) to be recognized, supporting cash flow.

• NYSE Listing Progress: PCAOB audits nearing completion; registration with SEC and NYSE listing expected to accelerate in Q2.

Strategy

• Balanced approach in a lower oil price environment: slowing CAPEX, increasing operational efficiency, and prioritising cash generation over aggressive expansion.

• Continued focus on capital discipline, reserving optionality via undrawn US$8.5M facility with UMB Bank.

• Hedging protects near-term revenues while maintaining exposure to price upside.

Financial Resilience

• Cash: A$12.7M + Unused Facility: A$39.8M → Total liquidity: A$52.5M

• Zero debt drawn as of Q1, with financial covenants met (minimum 1:1 current ratio, debt leverage <3:1).

• Estimated cash needs covered without raising capital.

Growth Path

• Expand inventory within SWISH Play (Oklahoma, Anadarko Basin).

• Diversify with both operated and non-operated interests (e.g., Continental Resources-led Gapstow wells).

• NYSE listing likely to broaden investor base and improve liquidity.

Investment Takeaway

Brookside Energy is executing a disciplined growth model—focused on production from low-cost, high-margin liquids-rich wells in the Anadarko Basin. Key drivers in Q2 will be revenue recognition from Gapstow and new production from Bruins. The reserves upgrade reflects strong capital efficiency and high asset quality. If the NYSE listing proceeds smoothly, BRK could see enhanced valuation through access to larger U.S. capital pools.

*gpt4o