Brookside ratchets up oil production with commercial win at Juanita
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Brookside Energy has increased oil production after achieving commercial production at its Juanita Well in the US, which delivered an initial peak rate of 130 barrels of oil per day.
This is a material contribution to Brookside Energy’s (ASX:BRK) production profile, importantly its more oil rather than gas. The Juanita Well averaged 112 barrels of oil per day (BOPD), which if sustained would equate to about a 10% increase in the company’s net liquids production versus the June quarter and 7% increase versus Brookside’s total net oil and gas production in the quarter.
The well was brought online after successful completion and comingling of two separate sands in the highly productive Simpson Group.
Production is being carefully controlled, as is standard practice at this stage in the life of a new well, to manage flow rates to prevent damage to the reservoirs and possibly compromise future production.
Fluid movement at the Juanita Well is being managed to ensure optimum reservoir performance and maximum recovery as Brookside learns more about the capability of these two zones.
Managing director David Prentice said the early results from the Juanita Well were very encouraging.
“With commercial production now established from these two zones, we are looking forward to gathering more data that will guide us in terms of next steps for this exciting new area of interest,” he said.
“This is another great result for the team.”
The Juanita Well is the first to be tested in the Bradbury Area of Interest (AOI), located within the Arbuckle Uplift in the Ardmore Basin and 20 miles west of the company’s other Anadarko Basin producing asset, the prolific SWISH AOI.
The Anadarko Basin has attracted multiple majors and independents all chasing low risk unconventional hydrocarbons, particularly liquids. The Basin is currently producing 440,000 BOPD as well as plenty of natural gas.
Each production test provides Brookside with more data not just on the well but also the local geology, helping to de-risk the project and identify future potential well locations.
There appears to be more potential at Juanita which may be revealed with more work. Brookside noted that the Juanita Well is targeting 10 potential oil reservoirs, including zones from within the highly productive Simpson Group, all of which are proven producers in the area.
The mean cumulative production from vertical wells in the Bradbury AOI is around 130 million barrels of oil (MBO) per well, including a 744 MBO producer less than a mile east of the Juanita Well location.
In the second quarter of the 2023 financial year, Brookside’s SWISH wells reached full production, with the four wells delivering gross production of 239,167 BOE and cumulative production to the end of the quarter of 1,183,300 BOE.
This handed Brookside record free cash flow of $7.5m, boosting the company’s cash pile to $23.5m.
This article was developed in collaboration with Brookside Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.