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Brookside Energy (ASX:BRK) - Managing Director, David Prentice (right). - The Market Herald
Managing Director, David Prentice (right).
Source: Brookside Energy
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  • Brookside Energy (BRK) has concluded negotiations to acquire 11 more producing wells and associated reserves in the STACK Play in the U.S.
  • The company has agreed to issue 125 million BRK shares for the wells, which equates to around US$8.30 (around A$10.71) per barrel of oil equivalent (BOE) acquired
  • The extra wells will deliver Brookside an almost four-fold uplift its current net daily production, increasing to 110 net BOE
  • The energy stock will officially acquire the 11 wells once the drilling joint venture (JV) concludes, at which point the JV will dissolve
  • Shares in Brookside Energy are trading up 4.76 per cent at 2.2 cents

Brookside Energy (BRK) has concluded negotiations to acquire 11 more producing wells and associated proved developed producing reserves.

All of the assets are located at the company's STACK Play, which is in the Anadarko Basin of Oklahoma, U.S.

BRK has agreed to issue 125 million of its own shares for the wells, which works out to be around US$2 million (about A$2.58 million).

It also equates to around US$8.30 (around A$10.71) per barrel of oil (BOE) acquired — a significant discount to the current forward strip pricing for oil and gas.

The energy stock will officially acquire the new wells once the drilling joint venture (JV) concludes, at which point the JV will dissolve.

Brookside is expecting an almost four-fold uplift its current net daily production, increasing to 110 net BOE, once the acquisition is complete.

Managing Director David Prentice said the new wells will deliver additional, stable, long life production for the company.

He also thanked Merchant Funds Management for helping organise the deal with the companies involved in the JV.

"We are absolutely delighted to have successfully concluded these negotiations with Merchant Funds Management to acquire this high-quality low-decline production stream in the STACK Play," he said.

Shares in Brookside Energy are trading up 4.76 per cent at 2.2 cents per share at 10:56 am AEDT.

BRK by the numbers
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