Ann: Quarterly Activities Report and Appendix 5B - Dec 2018, page-19

Yes US based joint venture I believe, and off balance sheet funding source

Yes forgot to mention this below.

1. Pursuant to the terms of the Drilling Joint Venture as set out set out in the Company’s announcement dated 25 July 2016, titled “Brookside Secures STACK Joint Venture Partner”, Brookside will only receive its Working Interest share of net revenue after 100% of drilling and completion capital associated with the relevant well has been returned to the Drilling Joint Venture.

https://hotcopper.com.au/threads/2819868/

Some more about the joint venture best explained by the company itself. Below

✓ Estimated, cash flow received from Drilling Joint Venture wells set to reach ~US$1,900,000 in calendar 2018 (US$670,000 received in calendar 2017), with approximately US$1,000,000 re-deployed to date to fund drilling and completion costs and increased working interests associated with joint venture wells ✓ Company actively leasing in the SCOOP Play (SWISH), with a ~8,000-acre


Production and Cash flow

The During the quarter, oil and gas sales continued (predominantly attributable to the Company’s Drilling Joint Venture).

Black Mesa estimates that cash flow received from Drilling Joint Venture wells will reach ~US$1,900,000 in calendar 2018 (US$670,000 received in calendar 2017), for a total of ~US$2,600,000 since inception (approximately 18 months from receipt of first revenue). Approximately US$1,000,000 of the sales proceeds received to date have been re-deployed to fund drilling and completion costs and increased working interests associated with joint venture wells.

This is central to Brookside’s business model as it provides an off-balance sheet source of capital for drilling and completion costs associated with the next series of ‘initial wells’ in currently undrilled development units and enables Brookside to ‘book’ 100% of the Proved Undeveloped or PUD reserves for the undrilled infill.


Not investment advice, do your own research, and consult a licensed adviser