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Brookside Certify Oklahoma Oil Reserves

26 April 2023 12:24
ASX: BRK

Following a transformative year for the Company, Brookside has delivered an Independent Reserves Certification for its SWISH AOI showing a net reserve value of US$170.5 million pre-tax with Proved and Probable Reserves of 11.9 million Barrels of Oil Equivalent.

Alongside this announcement, the Company intends to carry out an on-market buyback of up to 500 million ordinary shares, with the board now perceiving that its present market capitalisation doesn’t reflect the value of its assets, taking into account its outstanding 2022 financial results, which generated A$53 million in revenue, and the recent independent reserves certification.

The Company engaged Hass Petroleum Engineering Services to complete an independent reserves estimate for its acreage located in the Stephens and Carter Counties of Oklahoma. This assessment encompassed twenty undrilled sites within Brookside’s operated Drilling Spacing Units, of which four were classified as Proved Undeveloped Reserves.

The strong net reserve economics shows a total net sales topping out at US$629.0 million with a pre-tax future net income of US$336.2 million.

Located in Oklahoma’s renowned Anadarko Basin, the SWISH AOI contains Brookside’s current operating wells, including Ranger, Jewell, Flames and the latest addition Wolfpack. This area has been a significant triumph for the Company, with several wells yielding early and breaking records.

Ranger, for example, was able to beat expectations and bring in over US$13.2 million dollars in revenue after just seven months of operation, pumping out 173 thousand Barrels of Oil Equivalent and recouping all drilling and completion costs.

Brookside’s youngest well in the AOI looks to be repeating this success, with Wolfpack generating an estimated US$2.5 million dollars in revenue in its first month of flow-back after producing over 40,000 Barrels of Oil Equivalent.

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(Chart Indicating Brooksides Holdings within the SWISH AOI)

Net reserves do not include volumes attributable to the Bradbury AOI where the Company is currently developing its Juanita Well, with production testing set to commence soon following the uncovering of over 1,119 feet of gross pay across the primary, secondary and tertiary pre-drill target zones.

The Company said it has appointed CPS Capital group to conduct the Share Buy-Back on its behalf and intends for it to commence no earlier than 15th of May 2023 and expects completion to occur by the end of the year.

BRK’s Australian Stock Exchange-listed share price has risen 15.38 per cent today, currently selling at 1.5c (11.57 pm UTC+ 8 hours).

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