Brookside’s Wolf Pack well pays out in just 13 months

Special Report: Brookside Energy’s Wolf Pack Well has paid out within a short 13 months of starting production, with all drilling and completion costs now fully recovered.

The latest positive news for one of the few ASX companies in the North American oil and gas sector comes despite the well being drilled during a period of peak drilling and completion costs.

The Wolf Pack Well delivered gross sales volumes of ~424,000 barrel of oil equivalent in its first 13 months of operation, generating revenues of over US$21 million for the same period at an average realised price of US$50/BOE.

Along with the Jewell and Rangers wells, this is Brookside Energy’s (ASX:BRK) third well to pay out, with all others also paying out in 13 months – or much less in the case of Jewell Well with six months’ payout and Rangers Well at seven months.

Brookside puts the very rapid payout down to Wolf Pack’s excellent production rates and high liquids yields of approximately 79% over the period.

Wolf Pack Well reached a peak rate (at IP24 rating) of 2034 BOE per day (88% liquids, 12% gas) and an IP30 rate of 1869 BOE per day (88% liquids, 12% gas), both record rates for a Brookside operated well.

The well is Brookside’s fourth in the SWISH Area of Interest (AOI) in the southern SCOOP Play within Oklahoma’s prolific Anadarko Basin.

Managing Director, David Prentice said: “We are delighted to report on this impressive milestone for the Wolf Pack Well.

“Achieving payout in just 13 months is a remarkable achievement and is even more noteworthy given that it was accomplished during a period of peak drilling and completion costs.

“The exceptional initial and sustained production rates, coupled with strong liquids yields, have driven these results and this is testament to the quality of our SWISH AOI acreage and the great work of our team and service providers to identify, secure and then efficiently develop these very high quality reserves.

“This success once again underscores our commitment to delivering significant value to our shareholders and investors as we move into full field development of our SWISH AOI acreage.”

Profits set to gush

Today’s news comes less than a month after research house MST Access initiated coverage on Brookside Energy with a valuation at almost 5x its current share price.

While already generating strong profits and operating cashflows, MST expects Brookside’s profits to grow to almost $40m as soon as FY26.

MST noted Brookside is sitting among a rare cohort of junior resources and energy plays generating a healthy profit, which a production uplift is likely to bolster in the years ahead.

Stuart Baker of MST valued BRK on an NPV basis at 5.7c/share, 375% up on its current trading price of 1.2c.

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.