Brookside Energy (ASX:BRK) - Managing Director, David Prentice
Managing Director, David Prentice
Source: The Market Herald
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  • Oil and gas company Brookside Energy (BRK) has launched a new funding initiative for its Jewell Well development in Oklahoma
  • As part of the funding plan, Brookside will team up with accounting firm Hall Chadwick to launch a trust for keen investors
  • All of the capital raised from the SABO Development Trust will go towards advancing drilling and completion of Jewell Well
  • At this stage, the oil and gas stock hopes to have a rig contracted by December, before earthworks begin in January and sales begin in the June quarter of 2021
  • Shares in BRK are currently trading grey at 0.5 cents per share

Brookside Energy (BRK) has launched a new funding initiative for its Jewell Well development in the Anadarko Basin of Oklahoma.

The oil and gas company announced today it was partnering with leading accounting and business advisory firm Hall Chadwick to launch a unit trust.

The trust, known as the SABO Development Trust, will offer interested investors the opportunity to subscribe for units.

It’ll then fund a working interest share of the drilling and completion costs for the Jewell Well.

Additionally, once Jewell’s production and sales are established, the trust will receive a proportionate share of the revenue generated from the well.

“We are very pleased to be collaborating with both Hall Chadwick and Stonehorse on this funding initiative for the Jewell well,” Brookside Energy Managing Director David Prentice said.

“Successful development of the Jewell well will not only generate significant returns for the participants but will also be the next important step in proving up the value of the oil and gas reserves that will be established in Brookside’s three drilling spacing units in the SWISH AOI,” he added.

At this stage, Brookside hopes to have a rig contracted for the Jewell Well development by December 2020.

Earthworks will then begin in early January 2021, before the well is expected to spud in the March quarter.

Completion of operations is scheduled for mid-April 2021, with first sales expected in the June quarter next year.

Shares in Brookside Energy are currently trading grey at 0.5 cents per share at 2:23 pm AEDT.

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