Experience benefits Brookside as local oilmen lead it to black gold
Special Report: Oklahoma oil and gas land play Brookside Energy didn’t accidentally stumble over the region where it wants to make a fortune — it was led there by a very experienced team.
Brookside (ASX:BRK) is in the business of buying oil and gas leases in Oklahoma’s STACK and SCOOP areas cheaply, undertake some renovating in the form of defining reserves, and then sell them off when prices are high.
STACK and SCOOP have been described as two of the “hottest new areas” for oil development in the 130,000 sq km Anardarko Basin — one of the most productive oil and gas regions in the United States.
Managing director David Prentice says part of the reason Brookside was able to pick leases up for rock bottom prices from early 2016 was due to the experience of US partner Black Mesa.
“The team on the ground at Black Mesa are Oklahoma natives and have many decades experience in the Anadarko Basin, so they are very familiar with the land and leasing environment there,” he told Stockhead.
They’ve been at this a while
The team at Black Mesa is led by Bill Warnock, a man who did accidentally stumble into the oil leasing game in 1985 when he launched a company called Medallion Petroleum. He then thought oil prices couldn’t fall much further and now was the time to buy.
They did have further to fall, but not before Medallion had sold a property with oil reserves. The money from that sale kept them afloat through challenging years while peers became mired in debt.
In 2013, Mr Warnock was one of the top minds that Mr Prentice chased down to sit on the board of the forerunner of Brookside, ASX-listed Red Fork Energy.
Ten years later oil prices had plunged from $US112 a barrel in mid-2014 to $US42 in August 2015.
Mr Prentice says it was at that point when they decided to start Brookside, back-door list it into Red Fork, and launch Black Mesa as a US start-up.
“The relationship with Bill in particular led to the establishment of Black Mesa and through that he was able to bring a team of guys he’d worked with over decades to build a team,” Mr Prentice said.
“That’s a team of people who have worked together for several decades and done half a dozen startups similar to Black Mesa.
“The nice thing for Brookside is that they bring together the full suit of oil and gas exploration and production professionals, everyone from reservoir engineering to landmen, operations, accounting, and geology.”
Chairman Mr Warnock’s team includes Chris Girouard and Lee Francis who were with him at Medallion, ex-Schlumberger engineer John Schumer, land manager Morgan Caywood, and geologist James Eddleman.
This special report is brought to you by Brookside.
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