Two new prolific producers come online for oil producer Brookside Energy
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Special report: Brookside’s two latest new wells in Oklahoma’s Anadarko Basin are producing a combined 4,969 barrels of oil equivalent a day.
The Dr. No. well achieved a 1,769 barrels of oil equivalent (BOE) per day rate, with 64 per cent of that being oil. The Ladybug well achieved 3,200 BOE/day.
Brookside’s (ASX:BRK) partner which operates the fields has now drilled and completed 16 horizontal wells within the Anadarko Basin plays STACK and SCOOP.
The so-called STACK and SCOOP plays have been described as two of the “hottest new areas” for oil development in the US.
Brookside buys cheap undeveloped oil leases Oklahoma, develops them to prove the underlying oil reserves, then looks to sell the acreage for a tidy profit.
Brookside managing director, David Prentice called the two wells “prolific producers” which confirm his view that the Anadarko plays are among the best oil and gas projects in the US.
“We continue to see outstanding results from the wells that we have participated in; in terms of both initial production rates and estimated time to payout,” he said.
“We have now established a “body of work” in terms of initial and sustained production that will feed into our maiden reserve report and provide further support for our acreage acquisition and revaluation business model.”
The company has established 14 wells with an average initial flow rate (IP24) of 2400 barrels of oil equivalent (boe), a term used when both oil and gas are produced.
The body of data now shows Brookside investors can expect payout times on wells in the area of about 30 months.
The relatively short time to recover all of the drilling and completion capital is enabling them to reinvest capital from the drilling joint venture with Black Mesa into new wells.
It will allow them to grow their oil and gas reserves without having to raise extra capital.
Brookside is producing about 300 barrels of oil equivalent (BOE) a day from its Anadarko Basin properties in Oklahoma. The 130,000 sq km Anadarko Basin is among the most productive oil and gas regions in the US.
This special report is brought to you by Brookside Energy.
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