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Brookside Energy (ASX:BRK) - CEO, David Prentice - The Market Herald
CEO, David Prentice
Source: The Market Herald
  • Oil and gas explorer Brookside Energy (BRK) has reported strong sales analysis data for its non-operated working interest wells in the Anadarko Basin in Oklahoma
  • At the forefront of the analysis is the payout profile of Brookside's Sooner Trend Anadarko Canadian and Kingfisher (Stack) play wells
  • The payout, in this case, refers to the point at which all the expenses relating to bringing a well to production have been paid back through sales from that well
  • Brookside says of all the wells in the area which have paid out so far, 75 per cent of them did so in 12 months, with an average payout time of 16 months
  • These results create long-term value and validate the company's acreage selection and acquisition process
  • Nevertheless, despite the company's confidence, Brookside shares are down over 8 per cent this afternoon and worth just over half a cent each

Brookside Energy (BRK) has reported strong sales analysis data for its non-operated working interest wells in the Anadarko Basin in Oklahoma.

The company said the data validates its acreage selection and acquisition process for its Sooner Trend Anadarko Canadian and Kingfisher (STACK) play in the area.

At the forefront of the analysis is the payout profile of the STACK play wells. In this case, payout refers to the point at which 100 per cent of the costs and expenses related to drilling, testing, and equipping a well for production have been paid back through oil and gas sales from that well.

Brookside said of all the wells that have paid out so far, 75 per cent of them did so in 12 months. The average time to payout was 16 months.

According to the company, this rapid payout profile creates long-term value for the wells. As such, the company's strategy of focussing on exploitation instead of exploration — as well at its commitment to high-quality reservoirs — ensures strong rates of return from its assets even through commodity price cycles.

Brookside Managing Director David Prentice said results like today's are the foundation for the success of the business.

"The rapid return of capital invested is one of the most important metrics for us (alongside capital discipline) when we look to make an investment, whether it be in operated drilling, leasehold acquisition and trading or in producing property acquisitions," David said.

"We are building good momentum across the business and look forward to keeping our shareholders and investors up to date as we continue to unlock the value in our premium acreage position in the SWISH AOI in the southern part of the SCOOP play in the Anadarko Basin," he said.

The South Central Oklahoma Oil Province, or SCOOP, play is Brookside's other core Oklahoma focus.

Brookside said it has established a five-year, 20-well inventory of "drill-ready" locations in the Anadarko Basin area.

Despite the company's confidence, however, Brookside shares are down 8.33 per cent this afternoon and currently trading for 0.55 cents each at 12:37 pm AEDT. Brookside has a $6.75 million market cap.


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