- Brookside Energy (BRK) has successfully raised $8.25 million to drill the Jewell Well, which is located in Brookside’s SWISH area of interest (AOI) in Oklahoma’s Anadarko Basin
- The Jewell Well is the first in a five-year well development drilling program across Brookside’s three drilling spacing units within the SWISH AOI
- The placement received a lot of interest which reflects the recognition of the value of the Jewell Well
- The placement also comes with a one-for-two free-attaching option that are exercisable at 1.1 cents by June 30 2022
- Company shares are up 25 per cent and trading at one cent
Brookside Energy (BRK) has raised $8.25 million to fund the drilling of the Jewell Well, which is located in Brookside’s SWISH area of interest (AOI).
The SWISH AOI is situated within the South Central Oklahoma Oil Province (SCOOP) oil and gas play in the Anadarko Basin of Oklahoma.
The Jewell Well is a highly-anticipated well as it is the first in a potential five-year well development drilling program across Brookside’s three operated drilling spacing units (DSUs) in the SWISH AOI. The other two include the Flames and Rangers DSUs.
The $8.25 million placement was highly oversubscribed. Brookside believes this reflects the recognition that the development of the Jewell Well will be a “catalyst” in unlocking the value of Brookside’s acreage position.
“We are delighted with the response we have received from our existing shareholders (and from new investors) to this placement and would like to thank CPS Capital Group for assisting us with this very successful raising,” Managing Director David Prentice said.
Up to 1.1 billion shares have been issued to CPS’ sophisticated and professional investor clients at 0.75 cents per share. The placement also comes with one free-attaching listed option for every two shares subscribed for. The options are exercisable at 1.1 cents each on or before June 30, 2022.
Now that the capital raise has been completed, Brookside Energy is positioned to capitalise and develop the estimated 11,606,000 net barrels of oil equivalent (BOE) prospective resource base attributable to its three DSUs.
“This is a very exciting time for the company and the team at Black Mesa Energy and we are looking forward to breaking ground on the Jewell Well location very shortly,” David concluded.
Brookside will now accelerate operations and will initially target the Sycamore formation in the SWISH AOI. Future wells in the Jewell DSU will also target the Woodford formation, which just like the Sycamore formation, continues to deliver outstanding sustained productivity in nearby offsetting wells.
Company shares are up 25 per cent and trading at one cent at 12:46 pm AEDT.