Special Report: Brookside Energy is set to more than treble net production in Oklahoma’s Anadarko Basin, with forecasts indicating revenue and net income will grow in line with that trajectory.

Brookside (ASX:BRK) says it plans to launch Full Field Development in the SWISH Area of Interest early next year, giving Brookside (ASX:BRK)  a major boost in its efforts to become a substantial oil producer.

Forecasts include a significant surge in net production, with figures estimated to hit 4500 barrels of oil equivalent per day by FY2028, comprising a substantial 72% in liquids.

Based on conservative price projections, the SWISH AOI FFD is forecast to generate revenue of US$104 million and net income of US$51 million for FY2028.

Over the next five years, the SWISH AOI is poised to generate substantial cumulative revenue of US$360 million and cumulative net income of US$156 million.

That modelling includes West Texas Intermediate (WTI) at US$70/barrel and gas at US$2.50/Thousand Cubic Feet.

But low operating costs and high liquids yield give Brookside excellent leverage to higher oil prices: A US$20/Bbl increase in WTI to US$90/Bbl could propel revenue to US$132 million and net income to US$67 million for FY2028.

Similarly, with natural gas prices reaching US$3.50/Mcf and oil holding at US$90/Bbl, revenue could soar to nearly US$139 million, with net income hitting US$70 million for the same period.

The pathway for the continuous development of the SWISH AOI Reserves will be bolstered by the successful completion of the FMDP multi-well program currently being executed within the company’s Flames Drilling Spacing Unit.

That will see another 16 horizontal wells drilled in pad development campaigns across the Bruins, Jewell, and Rangers DSUs.

Brookside has also provided its updated FY2023 reserve update, which includes Independently Certified Reserves of 11.6MBOE net to Brookside, with 8.5MBOE net undeveloped reserves to be unlocked via pad development of the Bruins, Jewell and Rangers DSUs.

 

Strong cashflow, low risk

Brookside’s share of the capital expenditure to drill, complete and tie-in these wells is estimated to be US$126 million over three years and this is forecast to be funded from working capital and a modest credit facility of up to US$15 million.

“I am delighted to provide our shareholders and investors with details of this exciting milestone on the pathway for the monetization of the high-margin, low-risk oil, and gas reserves we have defined within our SWISH AOI,” Brookside Energy MD David Prentice said.

“Today’s announcement of the SWISH AOI FFD, sets out details of our continued journey to becoming a substantial oil producer and follows our recent commitment to the FMDP multi-well drilling program that is currently underway.

“Following the execution of the FMDP operations in FY2024, the Company will kick-off operations for the SWISH AOI FFD early in 2025, with our net production forecast to average approximately 4500 BOE for FY2028, a more than threefold increase from current production rates.

“The SWISH AOI FFD will be see us move forward with the efficient and cost-effective development of approximately 8.5 million net BOE of low-risk high liquids content reserves contained within the Bruins, Jewell, and Rangers DSUs.”

 

 

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.

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