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Australian oil and gas junior Brookside Energy (ASX:BRK) has this week secured a fifth Drilling Space Unit (DSU) for its SWISH Play in the Anadarko Basin in Oklahoma, boosting drill inventory at the acreage by as much as 26%.
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The new 960-acre DSU is adjacent to the explorer’s already-established Jewell and Bruins DSUs, which immediately “enhances Brookside’s position in this highly sought-after area” and gives it a chance to test its “scalable” model.
The company has lodged regulatory filings with the Oklahoma Corporation Commission and is all set to start development at the DSU once that red tape is conquered.
A multi-well, all-weather pad to support development will be built at the same time.
“This is another strong step forward in the execution of our strategy to grow production, build scale, and return capital,” Brookside’s CEO and managing director, David Prentice, said. “We’ve proven that our development model is efficient, repeatable, and capital disciplined, and we’re now scaling that success.”
“Scaling” is right: Beyond this DSU pickup, Brookside has plenty of plans it’s been cracking on with for some time, including another listing and more buys.
This, Mr Prentice described to shareholders as the company’s “next big phase.”
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First up, the gas and oil explorer is looking to add two more horizontal wells with 8,000-foot laterals (one targeting Sycamore and one for Woodford Shale) – a move that echoes the play Continental Resources rolled out at Gapstow.
Other expansions also loom large in the company’s plans: It’s monitoring the Simpson Group and Caney Shale sub-plays already connected to its SWISH setup.
On top of all that, Brookside has been looking into an NYSE listing for some time.
Price-wise, BRK has been -1.2%, to 41cps early on Tuesday.
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