BRK

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1.2¢ brookside energy limited

Thanks Dan ~ appreciate the post.Like many I am, and will...

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Dollar@nearly51

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08/11/22

18:26

Post #: 64654888
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Originally posted by danpech: ↑

We need to understand this acquisition process is exactly the same as all the other previous acquisitions of undeveloped acreage which lead to the original 3 DSU’s.

It is all about leasing the land from the farmers via primary leasing, picking up acreage from land speculators / traders who look to flip for profit, and if possible, parties holding the acreage like other small E&P players … depending on quality, location and demand for the land, it can lease out anywhere from a few hundred to a few thousand dollars per acre for undeveloped acreage. So based off previous DSU, it would be a reasonable to estimate the cost to be ~ US$ 1000-2000 per acre.

The major cost is not in the accumulation and formation of the DSU, but in the drilling of the DSU initial well. BRK don’t want to disclose the cost per acre ( average) because they are always in a competitive contest for new acreage and don’t necessarily want competitors know what they are paying… and vice versa. Once pooling orders are given, all and sundry can see the various price/ royalty options available for the acreage that is pooled and the final BRK WI level is determined. The OCC bases the pooling prices on the average acreage acquiring costs of the operator with some variation.

In terms of keeping capital for existing projects, once those DSU’s are HPB they are basically on the monetisation/ disposal end of the conveyor and any further development drilling is strategic in nature, rather than drilling for production only purposes.

BRK will always need new acreage being picked up to replace those assets that will be disposed of. They will also ideally hold extra capital so they are well placed financially to take advantage of opportunities that always arise.

Those that highlight the fact whilst BRK have sold non operated acreage for a profit over the last 5 years, they haven’t sold any operated acreage as yet. Whilst that is correct up to now, all I can say is watch this space.

Cheers

Dan

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Thanks Dan ~ appreciate the post.

Like many I am, and will continue to watch this space

I am holding, just not feeling the love at the moment and a niggling feeling telling me to keep a close eye on Management and 1. Operating Expenses 2. Working Capital for existing projects 3. Available funding and expenditure for acquisitions of new acreage 4. Income from sale of operated acreage.

Important they fund ALL activities from cash flow and not tap up the shareholders for any overspends or working capital shortfalls if they mismanage......

Thanks again

Good Luck All

BRK Price at posting: 1.2¢ Sentiment: Hold Disclosure: Held
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Last 1.2¢		Change 0.000(0.00%)		Mkt cap ! $57.27M

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Thanks Dan ~ appreciate the post.Like many I am, and will...

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