Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) will gain greater benefit from the high-margin Flames-Maroons Development Plan (FMDP) wells at its SWISH Project in Oklahoma’s prolific Anadarko Basin after increasing its average working interest.
Following successful completion of regulatory activities and a thorough review of title to confirm revenue distribution decks, the company’s average Working Interest in the FMDP has risen to approximately 70%.
“Tremendous outcome”
“The FMDP continues to deliver in terms of production and financial return, and this higher ownership stake is a tremendous outcome for the business,” Brookside’s managing director David Prentice said.
The increase is primarily driven by a more than 7% gain in Working Interest for the two wells targeting the Sycamore formation — the Rocket and Maroons Wells.
At Fleury 3-1S-3W WH3 Brookside now has a Working Interest (WI) of 81% and a Net Revenue Interest (NRI) of 61% and at Iginla 3-10-1S-3W WHX2 it holds a WI of 80% and an NRI of 60.5%.
The company's WI at Maroons 3-1S-3W SH1 is 63% and the NRI is 47% while at Rocket 3-10-1S-3W SHX2 the WI is 55.5% and NRI is 42%.
Location of the four FMDP wells: Fleury, Maroons and Iginla wells (drilled from Sanford Pad) and Rocket Well (drilled from existing Flames Well pad). Also shown are Continental Resources’ Courbet and Gapstow full-field development projects south of the FMDP and Jewell/Bruins DSUs.
Attractive economics
The FMDP wells have already demonstrated strong production results and attractive economics for Brookside.
Gross operated production has increased by 178% to more than 5,000 barrels of oil equivalent per day (BOEPD) since being brought online in September 2024.
"This increase in our working interest reflects the diligence of our land team and underscores Brookside's ability to capitalise on opportunities that add value for our shareholders and strengthen our long-term growth trajectory,” Prentice added.
About the FMDP
Completed in September 2024, the FMDP represents the first of many planned step changes in the growth of Brookside’s production, revenue and net income at the company’s flagship SWISH Project.
The FMDP consists of four new wells which increase the company’s inventory of producing wells at SWISH to eight and net average daily production is expected to increase from approximately 1,400 BOE to 2,500 BOE by the end of this year.
These new wells target the highly productive Sycamore Lime and Woodford Shale formations in the SCOOP area of the southern Anadarko Basin.