It’s getting harder and harder to buy a piece of oil play Brookside Energy
Link copied to
Brookside Energy’s shares register is becoming more tightly held as the top 40 shareholders gradually take up more shares.
The US-focused oil producer (ASX:BRK) says its top 40 shareholders now hold 7 per cent more of the register than they did in 2017 — a total of 67 per cent of the company.
Sixty per cent of those investors are high net worth individuals and 26 per cent are institutions.
The register looks to be tightening up nicely with buy-side interest over the last two months soaking up a good chunk of the tradable shares outside of the top 40.
Brookside is a property play rather than a strictly oil business.
It buys cheap undeveloped oil leases in Oklahoma, pretties them up by proving the underlying oil reserves, then looks to sell the acreage for a tidy profit.
It’s producing about 300 barrels of oil equivalent (BOE) a day from its Anadarko Basin properties in Oklahoma, an area that’s among the most productive oil and gas regions in the US.
Brookside’s last sale was in July when it offloaded an oil and gas lease for nearly double what it paid.
The RA Minerals Royalty Acreage package was a steal in 2016 for $US878,000 and sold for $US1.5 million, the company sold this 96.5 acre piece of its “STACK” projects in Oklahoma for an average of $US15,300 ($20,651) per acre.
This sale came on the back of an earlier acreage sale from “STACK” that achieved almost $US30,000 ($41,000) per acre.
The so-called STACK and SCOOP plays in Oklahoma’s Anadarko Super Basin have been described as two of the “hottest new areas” for oil development in the US.
This special report is brought to you by Brookside Energy.
This advice has been prepared without taking into account your objectives, financial situation or needs. You should, therefore, consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before acting on the advice.
If this advice relates to the acquisition, or possible acquisition, of a particular financial product, the recipient should obtain a disclosure document, a Product Disclosure Statement or an offer document (PDS) relating to the product and consider the PDS before making any decision about whether to acquire the product.