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Brookside Energy in strong FMDP start as flowback delivers US$4.3 million

Published 08/10/2024, 09:30 am
Updated 08/10/2024, 10:00 am
© Reuters.  Brookside Energy in strong FMDP start as flowback delivers US$4.3 million

Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has had a great start to production at the Flames Maroons Development Plan (FMDP) wells of the SWISH Project in Oklahoma’s prolific Anadarko Basin with revenue of approximately US$4.3 million since flowback and testing began last month.

The four new FMDP wells have produced approximately 80,000 barrels of oil equivalent (BOE) (87% liquids) in the first weeks of flowback and testing.

Encouraging flowback rates

Combined daily production from the new development wells, which adds to the company’s existing four reserve definition wells in SWISH, has reached around 3,900 barrels of oil equivalent per day (BOEPD) and this is with less than 6% of stimulation fluid recovered.

Brookside’s managing director David Prentice said: "We are very pleased with the early results from flowback and testing of our first pad development in SWISH.

“The production rates we are seeing from both the Woodford Shale and Sycamore formations are very encouraging and speak to the quality of our acreage.

"Generating approximately US$4.3 million in gross revenue so early in the flowback and testing phase highlights the potential of these wells to deliver strong, sustained production over time.”

More to come

The three wells on the Sanford Pad - Fleury, Maroons and Iginla - are producing significant volumes of oil and gas.

This, in itself, is highly encouraging for Brookside as ~75% of the total completed lateral length of these wells is within the Woodford Shale, a formation that typically takes longer to clean up and begin producing compared to the highly fractured Sycamore Limestone.

Production from the Rocket Well at the Flames pad, with a two-mile lateral in the Sycamore formation, is also showing strong early volumes during flowback and testing.

IP24 (peak rate), IP30 and IP90 rates will be reported for each of the FMDP wells as these milestones are achieved.

“We look forward to reporting peak and longer-term production rates as these wells continue to clean up and produce over the coming weeks and months," Prentice added.

SWISH AOI full field development production profile showing the significant and long-term production contribution from the FMDP multi-well development (orange).

About the FMDP

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.

With FMDP flowback and first sales already established, 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 wells 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.

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