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- Stonehorse Energy is growing its presence as an oil and gas producer in America, buying into two well bores from fellow ASX-listed Brookside Energy at the Oklahoma-based Anadarko Basin
- For nearly $1.7 million, Stonehorse secured itself working interest in a basin which currently produces roughly 600,000 barrels of oil a day
- Brookside’s Managing Director said Stonehorse can now expect significant cashflows to its portfolio
- Since announcing the buy yesterday, Stonehorse’s share price has climbed over 27 per cent, brining it to 1.4 cents each
Stonehorse Energy has purchased a working interest in two well bores from ASX-listed Brookside Energy in the Anadarko Basin, Oklahoma.
Shareholders seem to be impressed with the buy, with Stonehorse’s share price climbing 27.27 per cent since it was announced yesterday.
The oil and gas company will pay roughly $1.69 million (US$1.15 million) for a 15.6 per cent working interest in the Bullard well and a 2.3 per cent working interest in the Henry Federal well.
Approximately 600,000 barrels of oil are produced at the the Anadarko Basin each day, according to Brookside.
Stonehorse informed the market the two wells it has bought into have been successfully drilled, completed, and turned into sales. The Henry Federal well is initially producing 1319 barrels of oil per day.
Executive Director of Stonehorse David Deloub explained the company is in a unique position, compared to its peers, due to its back-in after pay-out arrangement with Oklahoma-headquartered Black Mesa Energy.
“This arrangement with Black Mesa provides Stonehorse with a significant operational and financial advantage compared to its ASX-listed peers that are operating in this sector,” David Deloub said.
Brookside’s Managing Director David Prentice expressed he believes Stonehorse will benefit financially from the buy.
“This acquisition will add significant cashflows to their emerging portfolio of oil and gas assets in the Anadarko Basin,” David Prentice said.
Stonehorse also has interest in the Sutton and Burgess wells at the Anadarko Basin. At Sutton its working interest is 25 per cent and at Burgess its working interest is 96.8 per cent.
Stonehorse’s share price is currently sitting at 1.4 cents each, following a 7.69 per cent increase today.
Brookside’s share price is up 12.5 per cent with shares currently trading for 0.9 cents each.
