Brookside Energy Ltd (ASX:BRK) has notched up a strong financial performance in the first half of 2023 at its operations in the Anadarko Basin of Oklahoma with its highest production revenue to date along with record gross production and record group net production.
Production revenue was the company’s highest since inception with gross revenue of A$26.8 million for the six months while net profit for the period (adjusted for non-cash items) was A$14.9 million.
Record daily gross operated production was achieved at the end of the period of 2,628 BOE per day with record group net production (including non-operated production) of 1,603 BOE per day.
Record production
For the six months ending June 30, Brookside achieved record gross production of 403,167 BOE (74% liquids) with record group net production for the period of 240,613 BOE (72% liquids).
With four operated wells on production in the SWISH Area of Interest (AOI), the company had a strong balance sheet with cash and receivables at end of period of A$28.4 million and no debt.
“Delighted” with results
Managing director David Prentice said: “We are delighted to present these results for the first half of 2023.
“The strong financial performance is fundamentally driven by the quality of our assets and the efforts of our team to deliver these profits from these low-cost liquid’s rich reserves in the Anadarko Basin in Oklahoma.
“We look forward to the second half of 2023 and to 2024 as we move forward with our disciplined approach to unlocking value in what looks to be a period of strengthening prices for oil.”
SWISH activity map showing the location of Brookside’s operated wells and Drilling Spacing Units (DSUs).
SWISH AOI reserves
There are 11.9 million BOE independently certified proved and probable (2P) reserves net to Brookside’s working interest and net of royalties (net reserves) for the SWISH AOI, with strong net reserves economics of pre-tax NPV10 of US$170.5 million (A$254.5 million), total net sales of US$629 million (A$939 million) and pre-tax future net income (net of capex) of US$336.2 million (A$501.8 million).
The net reserves did not include volumes attributable to acreage to be acquired in future pooling, equal to approximately 20% of the current net reserves, or from results from ongoing work in the Bradbury AOI.
Plenty of activity
During the half-year to June 30, 2023, the company saw significant activity across the business. By the end of June Brookside had four operated wells on production - the Jewell, Rangers, Flames and Wolf Pack wells.
The Wolf Pack Well was the first well in Brookside’s Phase Two Development Drilling program and its most successful well to date, reaching a peak rate (IP24) of 2,034 BOE per day (88% liquids, 12% gas), a record IP24 rate for the company.
During the period Brookside produced its one millionth BOE, including 715,000 BBLS of liquids, less than two years since its first operated well came on production, with cumulative production at the end of the period totalling 1,183,300 BOE.
In May the company started production testing of its first drilled well in the Bradbury AOI, Juanita well, with testing of one of the primary targets delivering very strong results with a peak production test rate of 329 barrels (BOEPD) (75% Oil), and an average rate of 174 BOEPD (76% oil) over a 27-day period. Testing is continuing.
Brookside Project, Oklahoma.
About the Anadarko Basin
The Anadarko Basin is a geologic depositional and structural basin centred in the western part of Oklahoma that is oil and gas-rich, and generally well-explored (mature).
The basin is a proven tier-one oil and gas development province with significant existing oil and gas gathering and transportation infrastructure, a competitive and highly experienced oil and gas service sector, and a favourable regulatory environment.
Activity continues to focus primarily on two world-class oil and gas plays – STACK and SCOOP.
The STACK (Sooner Trend, Anadarko Basin, Canadian and Kingfisher (LON:KGF) Counties) and SCOOP (South Central Oklahoma Oil Province) plays are being developed using modern horizontal drilling and completion techniques targeting the Mississippian aged formations (that sit above the Woodford Shale) and the Woodford Shale itself (the organic-rich source rock for the hydrocarbons in the basin).
The SWISH AOI is in the core of the SCOOP Play, identified and named by Brookside’s controlled subsidiary and manager of US operations, Black Mesa.