Brookside Energy (ASX:BRK) posts losses in turbulent market

• Oil and gas business Brookside Energy (BRK) has reported losses in its half-year report after a turbulent six months for the market
• The total comprehensive loss for the six months to June 30 was around $1.3 million, a significant slide from last year’s profit of over $227,000
• The company made a gross profit of just over $111,000 for the half-year mark, substantially lower compared to last years result of $923,000
• During the half-year period, Brookside formed a joint venture with Stonehorse Energy (SHE) called the ‘Orion Project’
• The aim of the Orion Project is to purchase oil and gas properties in the Anadarko Basin
• Brookside shares are trading for 0.5 cents each

Oil and gas business Brookside Energy (BRK) has reported deeper losses in its half-year report after a turbulent six months for the market

Brookside has announced its reviewed half-yearly report today — which shows the company made a gross profit of just over $111,000, substantially lower to last years figure of $923,000.

The total comprehensive loss for the year was around $1.3 million, a significant slide to last year’s profit of over $227,000.

Brookside ended the first half of 2020 cash flow negative at $163,776, compared to last year’s gain of $615,640.

Brookside’s total equity for the end of the half was $7.6 million, which is down from this time last year at $8.9 million.

Cash at the end of the half year period was approximately $624,000, which is lower than 2019’s $704,417.

Meantime, the company continues to advance its activities in the Anadarko Basin despite the highly volatile market and the worldwide pandemic.

The company reacted quickly to the changing conditions through cost reductions, restructuring and overall said it placed itself well to capitalise on the market volatility.

In June, Brookside formed a joint venture with Stonehorse Energy (SHE) called the ‘Orion Project.’ The aim of Orion is to purchase oil and gas properties in the Anadarko Basin.

The Anadarko Basin is considered a Tier One oil and gas development region, with significant oil and gas gathering and transportation infrastructure.

Early last month, the Orion project completed workover operations at the recently purchased Mitchell 12-1 Well.

While in September, the company raised $1.38 million via a capital raise, the majority of these funds will go towards the Orion Project.

Brookside remains in the grey today and is trading for 0.5 cents per share.