Brookside Energy’s already tightly-held register has a new substantial holder
Special Report: Brookside Energy has a new substantial shareholder on its register.
The company (ASX:BRK) told investors today Casey Capital has acquired a strategic stake via via on-market purchases and will play an important role in the newly-established advisory board.
Casey Capital is a property-focussed fund with over $2 billion in projects under management.
The US-focused oil producer says its top 40 shareholders now hold 70 per cent of the company. Approximately sixty per cent of those investors are institutional or high net worth investors.
A property play rather than a strictly oil business
Brookside buys undervalued, undeveloped oil leases in Oklahoma, pretties them up by proving the underlying oil reserves, then looks to sell the acreage for a tidy profit.
And it’s working selling a lease in May in the STACK play for an average of $US28,600 ($38,000) per acre — more than 10 times what they paid in 2016.
Then in July they did it again, selling another STACK lease for $1.5m, or nearly double what they paid for it.
The arrival of Casey on the register validates their business model and demonstrates increasing market recognition.
Managing Director David Prentice said, “We think there is very strong alignment between the success that Mark and Casey Capital have enjoyed in Australia in the property sector with what we are doing.”
Welcoming a new advisory board
In addition to coming on the register, Casey Capital’s Chairman Mark Casey has joined as the Chair of a newly established advisory board.
The function of the advisory board is to continue to communicate and explain Brookside’s unique business model to the market.
Mark Casey said, “This is an exciting investment that fits well into the Casey Capital vision as it encompasses both excellent real estate holdings along with growing cash flows as more wells in Oklahoma come on line.”
In the coming months the company says it will look to appoint additional members to strengthen and broaden the already strong management team.
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