In terms of the reserves, you are 100% correct that the company has not changed their number since the originall announcement. The main factor that will affect reserves and EUR is acreage , rather than flow rates, which affect the payout period … just means producing more of the reserves are produced earlier.
Since the original reserve announcement, BRK have added to the operated SWISH position twice for an ~ 51 % increase in acreage. Without the need for complex calculation, appreciating that reserves are acreage dependant, it is obvious that there has been a significant increase in BRK’s reserve base, despite the company not quantifying that increase. As you posted, the reasoning is for competitive purposes and it does make it difficult for share holders to value the company. Having said that, the market has ignored the original reserve , the value attributed to it and cashflow produced , so any updates of the reserve will probably not change anything at this stage.
In regards to the over pressurised Sycamore zone, I wouldn’t read too much into that. This is the top zone of 10 of interest and I doubt they were looking to produce from it considering the primary target is the deepest zone, the Mc Lish and the secondary targets directly above being the Bromide and Viola. Oil and gas shows in the Sycamore were expected, the over pressure is more of a nuisance factor than anything . It shouldn’t be a factor in the deeper zones as it doesn’t mean they will be over-pressurised , so I don’t see a change in the flow rates of any successful deeper zones.
The main websites I use are the okcountyrecords.com for leasing, Oklahoma Corporation Commission for court cases, dockets etc and the Oklahoma States Tax portal which provides well production numbers.
Hope that helps
Gooooo the Socceroos
Cheers
Dan
BRK Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
(20min delay)