Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) continues to tap into the oil & gas potential of the SWISH Area of Interest (AOI) in the SCOOP Play of Oklahoma’s world-class Anadarko Basin by electing to participate in the Gapstow Full Field Development (FFD) of Continental Resources.
Following its enormous success with the Gapstow Well and the Courbet full field development program, Continental is proceeding with the full field development of its acreage, which is south of and contiguous with Brookside’s Bruins and Jewells DSUs.
Brookside will participate in seven wells in the Gapstow FFD with a cumulative working interest of 20.9% at a net cost of US$2.5 million with this amount already included in the company’s 2024 capex budget.
Centred on Gapstow Well
This FFD program will be centred on the highly productive Gapstow Well which has produced approximately 415,000 BBLs of oil and almost 1 BCF of gas in 11 months.
The nine wells that make up the Gapstow FFD, will be drilled in a 'wine rack' pattern targeting the Sycamore Lime and Woodford Shale formation as per Continental’s Courbet full field development and Brookside’s Flames Maroons Development Plan (FMDP).
To grow PDP reserve base
Managing director David Prentice said: “I am very pleased to update our shareholders and investors with news of our election to participate alongside Continental on the exciting development in the SWISH AOI and the resulting increase in our production in FY2025 and beyond, compared to our prior guidance.
“Continental is an excellent partner with a strong history for efficient and highly successful development of oil and gas reserves across the Anadarko Basin, including within the SWISH area, most notably the recent success with the Courbet full field development project, south of and adjacent to our FMDP project.
“Participation in this venture with Continental, consistent with our liquids production focus, will grow our PDP reserve base and add important additional cashflow as we move into our operated SWISH AOI FFD in 2025.
“We look forward to providing further updates on the Gapstow FFD over the coming quarters.”
Continental Resources Gapstow Full Field Development on acreage contiguous with Brookside’s Bruins and Jewell DSUs showing the seven wells in which Brookside will participate - five Woodford wells (names ending with HXW) and two Sycamore wells (well names ending in HXM).
About the drilling
Drilling is being undertaken using three rigs and is expected to commence this quarter.
All the wells will be drilled prior to commencing completion operations, with the wells expected to be brought on production simultaneously in the fourth quarter of this year.
This will add an incremental ~150BEOPD (70% liquids) net to Brookside over an initial two years and boost the company's PDP reserve base.
Brookside has elected to participate as a non-operator in seven of the nine Gapstow FFD wells with two targeting the Sycamore Lime formation and five targeting the Woodford Shale formation.
The company will have a cumulative working interest of 20.9% and a cumulative net revenue interest of 15.7%.
Continental Resources will be the operator of the Gapstow FFD with Brookside’s estimated share of the drilling and completion costs (US$2.5 million) to be funded from working capital and cash flow.