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- Five new horizontal wells advancing across Southern SCOOP, Northern SCOOP and Cherokee plays
- Secured non-operated interests in five additional proposed horizontal wells
- Opportunities provide further potential to grow production and cash flow
Brookside Energy (ASX: BRK) has secured non-operated interests in five additional proposed horizontal wells across three areas, targeting the Cherokee, Woodford and Sycamore formations in the US.
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The additions build on the company’s established 11-well operated production base in the SWISH play.
Working interests are currently estimated to range from approximately one to 12%, providing further opportunities for production and reserve growth.
MD and CEO, David Prentice, said together with Brookside’s recently completed acquisition of Lone Star’s US oil and gas interests, these opportunities provide further potential to grow production and cash flow outside the company’s operated SWISH program.
“Our operated activity remains the foundation of our business, but we’re building other sources of production and cash flow across the Anadarko Basin,” Mr Prentice said.
“We’re seeing good opportunities through both our existing acreage positions and new non-operated investments. They allow us to participate in quality developments with relatively modest capital commitments, without taking resources away from our operated program.
“Successful development of these wells would add to our production base and help us build scale.”
Based on current working-interest estimates and indicative development costs, Brookside’s total investment across the five wells is expected to be approximately US$3.5 million, with the program to be funded from existing working capital and operating cash flow.
Brookside holds working interests in a 1,920-acre drilling spacing unit (DSU) in the Southern SCOOP, established through its participation in a Woodford horizontal well drilled and completed in 2018. The well produced approximately 300,000 BOE gross in its first 12 months and approximately 1.0 MMBOE gross cumulatively to July 2026.
Regulatory applications have recently been filed for two proposed extended-length horizontal wells targeting the Woodford and Sycamore formations in this DSU.
Brookside has secured an approximately one per cent working interest in a proposed three-mile Woodford horizontal in the Northern SCOOP.
One well is planned as a three-mile horizontal and the other as a two-mile horizontal.
The Cherokee has emerged as one of the most active horizontal development plays in western Oklahoma, with increasing multi-well development and transaction activity across the play.
BRK is down 2.56% to 38.0¢. Mkt cap $36.89M.
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