Brookside Energy’s reserves surge 50% to offer barrel loads of production momentum

Special Report: Brookside Energy has delivered a hefty boost to its oil and gas reserves, giving the junior producer strong growth in its near-term revenue-generating assets and long-term reserve base.

The independently verified FY2024 reserve update has lifted Brookside’s (ASX: BRK) proved developed producing (PDP) net reserves by 50.1 per cent to 2.65 million barrels of oil equivalent (BOE). Total Proved (1P) net reserves climbed 21.8 per cent to 4.98 million BOE, enhancing BRK’s shorter term production profile.

Total Proved plus Probable (2P) Net Reserves increased by 6.8 per cent to 12.35 million BOE, adding volume to the long-term reserve base.

Pumped up production potential

Notably the PDP reserves surged by 1.41 million net BOE, more than double Brookside’s FY24 production of 525,000 barrels.

That’s a 268% replacement rate on a PDP basis, 170% on a 1P basis, and 150% on a 2P basis, demonstrating the junior producer’s consistent organic growth.

Critically, BRK locked in these reserve gains at a finding and development (F&D) cost of just US$16.40 per BOE which is well below the 2023 global public company average of US$20.06 per BOE.

Upwards trajectory

Brookside’s robust reserves uplift follows a strong 2024, including the December quarter’s record net production of almost 2500 BOE per day – a 129% increase on the previous quarter.

That generated $21.1 million in cash receipts from sales for the company, one of only a few ASX-listers operating in the North American oil and gas sector.

Finishing the previous quarter with a strong cash balance of A$11.3 million, the company is ideally placed to pursue its 2025 strategy of further growing inventory and completing more targeted drilling in Oklahoma’s prolific Anadarko Basin, including three new wells at the SWISH project.

Brookside is additionally participating as a non-operator in seven wells within the Gapstow FFD, also in the Andarko Basin, with a cumulative working interest of 20.9%.

Managing director David Prentice said: “We’re definitely excited to have added to our reserves and have opportunities to grow reserves even more.

“With our forecast strong production uplifts and additional inventory developments, we are confident in our ability to deliver sustainable returns for our shareholders.”