Brookside Energy Ltd (ASX:BRK) has topped off a transformational 2022 by returning record after-tax profit of A$15,096,105 for the 12 months, a major turnaround on the A$2,611,336 loss in the previous 12 months.
The transformation was driven by the company executing its strategy to prospect for, prove up and then monetise oil and gas assets within the world-class Anadarko Basin of Oklahoma.
Momentum that began in 2021 with the drilling of the Jewell Well accelerated into 2022 with Brookside drilling multiple wells, growing production, adding acreage and, most importantly, generating significant revenue growth and a maiden after-tax profit.
Revenue increases
2022 saw the company generate revenue of A$52,996,833, considerably higher than the $12,580,636 generated in 2021.
Brookside produced 613,533 BOE (Gross Operated) and grew its acreage position by 41% year-on-year to approximately 4,615 Working Interest leasehold acres.
Busy on the ground
The impressive end-of-year figures follow the company completing its Held-By-Production (HBP) program in the SWISH Area of Interest (AOI) during 2022 by bringing onto production the Rangers and Flames wells.
With three Drilling Spacing Units (DSUs) HBP’d Brookside launched its Phase Two Development Program by drilling the Wolf Pack Well in the Rangers DSU, which by the end of the year had reached total depth and was being completed.
The Juanita Well, BRK’s first well in the newly formed Bradbury AOI, was also spudded and has returned very encouraging early results with oil shows and elevated gas readings encountered in the first of 10 targeted potential reservoirs.
Land holdings increased
During 2022, the Brookside team was also successful in increasing land holdings in the SWISH AOI.
This work saw the addition of a fourth operated DSU, the Bruins unit, in the core of the SWISH AOI holdings, and a tripling of its acreage position in the Bradbury AOI where three DSUs are now controlled by BRK.
In a statement about the financial results, BRK said: “As we now reach the end of the first quarter of 2023, the team remains focused on delivering on our 'Prospect, Prove-up and Monetise' strategy.
"With oil and gas prices softer in the first quarter and inflation affecting costs across oil field services, it is important that we hold to the rate of return and payout metrics that ensured we delivered this wonderful financial performance and continue to keep shareholder returns at the front of our minds."