- Perth-based Brookside Energy (BRK) has farmed out a portion of the Jewell Well in Oklahoma, U.S. to oil and gas company Stonehorse Energy (SHE)
- Jewell Well is part of Brookside’s SWISH AOI and is the first well in a potential 20-well development drilling program, controlled by SHE’s subsidiary, Black Mesa Energy
- Under the terms of the agreement, Stonehorse has agreed to fund up to 50 percent of all costs associated with drilling and completing the Jewell Well
- Brookside will retain 100 per cent of its working interest in the acreage, plus interest in the Flames and Rangers drilling spacing units and production from all future wells
- The well is now fully funded, allowing site preparation and drilling to begin
- Brookside Energy is trading steady at 1.1 cents, while Stonehorse is in the grey at 2.1 cents per share
Brookside Energy (BRK) has farmed out a portion of the Jewell Well to oil and gas company Stonehorse Energy.
The Perth-based company’s Jewell Well is located in the SWISH area of interest (AOI) in the Anadarko Basin in Oklahoma, U.S. It is the first well in a potential five-year, 20 well development drilling program across the three drilling spacing units (DSU) controlled by Brookside in the SWISH AOI.
Under the terms of the agreement, Stonehorse has agreed to fund its proportionate share of all costs associated with drilling and completing the Jewell Well to earn its proportionate working interest share — up to 50 per cent.
Brookside will retain 100 per cent of its working interest in the acreage, plus interest in the Flames and Rangers drilling spacing units and production from all future wells.
However, Brookside’s controlled subsidiary Black Mesa Energy, will operate the Jewell Well. The Tulsa-based subsidiary is entitled to a 25 per cent working interest back-in after payout in the DSU.
The company says drilling of the Jewell Well will unlock significant value in the company’s SWISH AIO acreage, estimated at 11,606,000 net barrels of oil equivalent.
“We are very pleased to welcome Stonehorse as a partner in the Jewell Well,” said Brookside Managing Director, David Prentice.
“Our team on the ground in Oklahoma is moving quickly to advance the spudding of the Jewell Well, including work to prepare the all-weather drill pad and lock in the various service companies. We are all delighted that with funding in place we can now begin to unlock the considerable value that lies within our tier-one SWISH AOI acreage position.”
Brookside Energy is trading steady at 1.1 cents while Stonehorse is in the grey at 2.1 cents per share at 10:18 am AEDT.