Hi mate You basically outlined the significance in your post....

Hi mate

You basically outlined the significance in your post.

They were looking for bypassed oil and gas in an area of proven production. It seems the deeper exploration target may not have come through but the initial primary zone tested better than expected. Always a very good sign in this situation .

In their own words....

"“These initial test rates have exceeded our projections, solidifying our confidence in the long-term production capabilities of this zone and the area more generally."

and

"These initial test rates have exceeded our projections, solidifying our confidence in the long-term production capabilities of this zone and the area more generally."

and

“We are actively leveraging the data and insights gained from these test results to optimize our plans to expand our footprint within the Bradbury AOI."

So early indications are that yet again, the BRK technical team have come up trumps in prospecting and well on the way to proving another home grown " discovery"

Even with a better than expected test result from one zone, the well still can get better with more testing higher up.

What is very exciting is BRK have the average reserve at 130,000 BOE per well, not per zone, but per well. They have already produced over 5000 BOE in just 27 days on a production test where they were" playing" around with the flows to find the optimal rate of production. In essence they have produced ~4% of the expected average reserve during the first month of testing. As this is a conventional reservoir and unfracked ( less energy into the zone), the initial production rate will not be supercharged like in the SWISH wells, but typically, there is a much longer production plateau and flatter decline curve. So this could mean a potential larger reserve then the typical 130 k BOE . In saying this, still way too early for any concrete statements but the results so far make it a possibility, rather than not ( ie, if the well IP 24 at 1o0 BOEPD and averaged at say 45 BOEPD).

Will be very interesting what the higher up zones deliver, and what will that means in terms of production from this zone. For example, if there is another very good , above expectations flow will they decide to produce the higher zone first until depletion, or can they comingle the zones to increase flow rates?

Then there is the second location. They have already stated if the Juanita results are positive, they will quickly drill the second location ( no timeframe given yet). ... and then there is the BRK land grab that should hopefully occur on the back of this result. At the AGM. David mentioned the potential for 6+ well locations which implies 6+ DSU's ( probably 40 acres so 240 + acres ) . As mentioned before, the majors will not come in and lease this paly as they are not interested in small vertical wells so competition for leases should hopefully not heat up too much... but then the leaseholders may want BRK to pay much more per acre if the results are " too good" so it will be interesting to see how BRK goes forward in terms of lease acquisition.

As you mentioned, there is a good possibility that BRK will be able to engineer an oil and gas field of significance ( a fault block and 100-150 BOEPD at a time), with high margin , low cost, low decline vertical wells which they will drill for production, whilst at the same time, they monetise the SWISH assets over the next 6-18 months.

Cheers

Dan