Hi mate... They will convert proved and probable undeveloped...

Hi mate...

They will convert proved and probable undeveloped resources / reserves to PDP, and the conversion rate should be close to 100% or more than 100% if they get outperformance . Their cashflow from SWISH won't start to decline until post2028/29. As SWISH capital spend will have been completed before the last DSU is online in 2028, there will be significant free cash generation by this asset, even whilst it is in decline. What I would love to have visibility on SWISH production into the legacy phase post 2029.

It is unlikely BRK will be able to replace the reserves from other assets in the SWISH AOI, CLR has pretty well tied the whole region up, so they will need to find a new hunting ground or two. New productive zones in new locations in the Anadarko basin and beyond are popping up fairly frequently. IMO project 2 will almost certainly be not near SWISH... and they will need to start pretty soon.

You are 100% correct on the buyers front... unlike 5+ years ago, very few folks are currently paying prices for PUD reserves which come anywhere close to the returns generated by development... the real advantage for BRK is this means substantial long term, low decline production ( even after material decline) from 20+ SWISH wells . BRK would not have any production of significance if they sold off their reserves.

I can't see capital returns of significance until the SWISH AOI development is completed.. they may be able to use the mentioned US$10-15 million facility to fund early stage drilling and completion of the post FMDP to build cash which may aid in a smaller buy back, especially if commodity prices help out, we shall see.

Post 2028, there will be truckloads of free cash for 2-3 years( yes declining, but material ), for capital management, whilst being able to fund any new projects they would have in the locker.