Join our daily newsletter At The Bell to receive exclusive market insights
- Brookside Energy (BRK) begins commercial production of oil and gas from its Flames Well in the Anadarko basin, Oklahoma
- Although the company is still in the early stages of the flow-back and stimulation fluid recovery process, the rate of production has enabled the start of sales
- Volumes of oil and rich gas have been sold into the spot market, with oil trucked to a nearby pipeline terminal and gas transported via pipeline to a gas processing plant
- It closes out the company’s Held by Production program and Managing Director David Prentice says BRK will now focus on extracting the maximum value from each well
- Brookside shares last traded at 1.5 cents on August 3
Brookside Energy (BRK) has begun commercial production of oil and gas from its Flames Well in the Anadarko basin, Oklahoma.
Last month, the company began flow-back operations and recovered oil and gas that was flowing to temporary facilities to remove sand and other debris.
Now, Brookside said although it was still in the very early part of the flow-back and stimulation fluid recovery process, the rate of production had enabled the start of commercial production and sales.
The well is producing premium light sweet crude and liquids-rich gas, and, if production continues unhedged, BRK said it would be able to take “full advantage” of the strong pricing environment for oil, gas and natural gas liquids.
Volumes of oil and rich gas have been sold into the spot market, with oil trucked to a nearby pipeline terminal and gas transported via pipeline to a gas processing plant.
With commercial production now established in the Flames Drilling Space Unit (DSU), this unit is classified as held by production (HBP), enabling the company to book proved developed and proved undeveloped reserves.
It adds to production at Brookside’s other wells in its SWISH Area of Interest, Jewell and Rangers, finalising the company’s Held by Production program.
Managing Director David Prentice said capping off the program was a “company-making milestone”.
“As a team, we are delighted to have completed this part of our strategy and we would like to thank our shareholders for their support, the Black Mesa team and all the great people working across all the service companies and consultants who have helped us to reach this point, safely, on budget and with fantastic production outcomes,” Mr Prentice said.
“With this done, we now embark on the next part of our strategy, to extract maximum value for the large inventory of proven low-risk, high-return development wells that this HBP program has created.”
Brookside shares last traded at 1.5 cents on August 3.
