Brookside steps up to operator status with massive US leasing campaign
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Special Report: US-focused oil company Brookside Energy is building a bigger position in the Anadarko Basin as it progresses its strategy to become an operator.
Brookside (ASX:BRK) is now sitting on 6,000 acres in ‘SCOOP’, a shale play whose full name is the South Central Oklahoma Oil Province.
Managing Director David Prentice says the company already has reserves of 3.45 million barrels of oil equivalent (Mboe) in the STACK (Sooner Trend (oil field), Anadarko (basin), Canadian and Kingfisher (counties)) play in Oklahoma.
And while this initial non-operated position in STACK is great start for Brookside, the real transformation for the company will come from its SWISH project in the SCOOP Play, also located in the prolific Anadarko Basin.
It is here that Brookside has the opportunity to become an operator and at the same time dramatically increase the scale of the business.
‘We’ve been working for 12 months on taking what we have learned in the non-operated STACK play and getting an operator position in SCOOP, because the extra leverage in doing that for shareholders is enormous,” he told Stockhead.
It’s an area that has already caught the attention of much bigger companies and private equity players.
NYSE-listed Encana Corporation is getting an average of 1044 Boe a day from an eight well site, while rival Continental Resources have highlighted enormous upside in their SCOOP project, SpringBoard.
Continental is expecting to run about 12 operating rigs in that acreage and is already producing about 13,000 gross BOE per day, with 45 wells drilled waiting on completion (including 27 targeting the Woodford and Sycamore reservoirs, where Brookside is).
Continental says they produced 6,900 Boe per day from a single seven-well unit, or drilling area.
Mr Prentice says they have seven units in the same general location.
The seven development units being targeted range in size from 320 acres to 1280 acres and to date the company controls an average of 28 per cent of the acres available to be leased in each unit.
But the plan now is to prove that their units can produce similar rates of oil and gas.
“The next catalyst for taking that from potential to reserves is to drill wells. We’re looking at getting ready to spud the first well in our SWISH play soon in the first half of this year,” Mr Prentice said.
“We’re have production data by end of June and be in a position to talk about reserve potential by end of the year.”
Black Mesa is continuing to work on high-grading, trading, and additional leasing to firm up the final acreage position within the SWISH area of interest.