Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has been busy on the corporate front, appointing a new non-executive director and acquiring residual back-in interest from US directors as part of a strategic expansion.
From March 1, Chris Robertson will join the Brookside board as an independent non-executive director. His appointment comes as part of the company’s initiative to strengthen its board during a period of growth.
Senior roles within funds management
With his 34 years of experience in the investment market and a 20-year tenure in senior roles within the funds management industry, Robertson will bring relationship-building capabilities and expertise to bear on the company's future endeavours.
Robertson, a significant shareholder since 2016, possesses an insider’s understanding of Brookside’s strategic goals along with a grasp of the challenges of shareholder engagement.
His role will include responsibilities on the Audit and Risk Committee and the Remuneration and Nomination Committee.
Based in Sydney, Robertson's considerable network among east-coast shareholders, institutional investors and brokers is expected to enhance the company's growth and bolster investor relations significantly.
“We are delighted to welcome Chris to the board,” Brookside Chair Michael Fry said.
“Chris’ valuable experience and strong relationships with our shareholder base on the east coast of Australia and the investment community generally will benefit Brookside significantly as we move forward with our plans to harvest cash flow from our SWISH AOI reserves and use this as a platform for continued growth.
“On behalf of the board, I warmly welcome Chris to Brookside and look forward to working with him as we continue the exciting next phase of growth for the company.”
Acquisition of back-in interest
In a move to align its corporate structure with other US-listed exploration and production (E&P) companies and drive financial efficiencies, Brookside has resolved to acquire the remaining 11.6% back-in after payout interest (BAPO Interest) from US-based senior executives.
The acquisition is part of Brookside's ongoing efforts to close the gap between its net asset value and market capitalisation, especially with the promising FMDP project expected to significantly increase production and cash flow within the next 12 months.
The US-based senior executive group will be compensated through a combination of a 1.3% royalties on future production from the SWISH AOI acreage and cash payments starting at the end of the first quarter of 2025, amounting to seven instalments of around US$618,000 each.
The Tulsa-based senior executive team, including the newly appointed CFO, Shane Gray, is committed to maximising shareholder value through the FMDP operations and exploring new growth avenues beyond the company's existing drilling inventory.