Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has reached a “pivotal moment” in its history with multi-well completion operations underway at the Flames-Maroons Development Plan (FMDP) in the southern SCOOP Play in Oklahoma’s Anadarko Basin and production within three months.
Production and first sales are expected late this quarter or early in quarter four, which will transform the company’s production profile, growing net production to 2,500 BOEPD (78% liquids) by the end of the year before the addition of further production from Continental Resources’ Gapstow FFD.
“Unwavering focus”
Brookside’s managing director David Prentice said: "I am thrilled to announce the beginning of completion operations at the FMDP” in what is “a pivotal moment in the history of our company".
“I am incredibly proud of the entire team. The efforts of our operations group in particular, to safely plan and execute a development of this scale, on time and under budget, is a testament to their planning and execution skills, as well as our unwavering focus on efficiency.”
Mobilisation of completion equipment to the Rocket Well.
Completion underway
At the Rocket Well on the Flames Pad completions crews and equipment including pumps, storage vessels and all other supporting equipment are on site and spotted on location and 24/7 completion operations have started.
Following Rocket, which is targeting the Sycamore Formation, equipment and crew will be moved to the three-well Sanford Pad and the Iginla, Maroons and Fleury wells will be completed.
“The successful delivery of the next phase of the FDMP — completing these wells and bringing them to sales — will result in unprecedented production and sales growth for the business,” Prentice said.
“This achievement positions us to seamlessly transition into the full field development of our remaining low-risk, high-margin oil and gas reserves in the SWISH AOI.”
SWISH AOI full field development production profile showing the significant and long-term production contribution from the FMDP multi-well development (orange).
Rocket first of four
Rocket will be the first of the four FMDP wells to be completed and will be stimulated with a high-intensity fracture stimulation comprised of ~46 separate stages using the plug and perforate method.
Completion of the three Sanford Pad wells will utilise the zipper frac technique to maximize efficiency by performing completion operations on two of the three wells at any given time.
The two-mile Iginla Well will be zippered first along with the one-mile Maroons Well.
Once the high-intensity frac of the Maroons Well is finished, the Iginla Well will be zippered with the one-mile Fleury Well with both the Fleury and Iginla wells finishing at about the same time.
Upon completing the frac operations, all completion equipment will be moved off location to make room for a coiled tubing rig that will be used to drill out the isolation plugs in the Maroons and Fleury wells.
Following this a standalone snubbing unit will be moved in and rigged up on the Rocket Well to drill out the plugs and install production tubing after which the standalone snubbing unit will be moved to the Iginla Well and the plugs will be drilled out and production tubing installed.
FMDP revenue
The FMDP is a multi-well drilling program targeting the highly productive Sycamore Lime and Woodford Shale formations in the SCOOP area of the southern Anadarko Basin.
Of the four wells in the multi-well drilling program, three were drilled from the Sanford Pad; the Fleury, Maroons and Iginla wells, with the final well, the Rocket Well, drilled from the Flames Well pad.
With FMDP flow-back and first sales scheduled for late 3Q/early 4Q2024, the FMDP is forecast to produce 715,000 BOE (78% liquids) net to Brookside in its first year of operation with average production boosted to 2,300 BOEPD net to Brookside and revenue to US$70 million (Net Income US$26.6 million) in FY2025.
Revenue over the life of the well is projected to be US$164 million with net income of US$58 million from 2,100,000 BOE Net (~60% liquids).
The FMDP will be the first of many planned step changes in the growth of Brookside’s production, revenue and net income, contributing to Brookside’s success for years to come.