Brookside Energy: Jewell Well Pre-Completion Operations
Perth, Western Australia – 29 July 2021 – Brookside Energy Limited (ASX: BRK) (FSE: 8F3) (Brookside or the Company) is pleased to provide shareholders and investors with an update on operations on the high-impact Jewell 13-12-1S-3W SXH1 well (Jewell Well) located in Brookside’s SWISH Area of Interest (AOI) in the world-class Anadarko Basin (Figure 3).
HIGHLIGHTS
- Pre-completion operations are underway and proceeding on schedule, safely and without incident
- Present operations include installation of the completion (Christmas) tree on the wellhead and pressure test this equipment, move in, and rig up coiled tubing unit, conduct mechanical integrity testing of the production casing and complete the cement bond log, and milling of the wellbore toe sleeve
- Standby for arrival of Liberty Oilfield Services completion equipment and personnel
Present Operations
Pre-completion operations have commenced and are proceeding on schedule, safely and without incident. The completion tree has been installed and pressure tested (see Figure 1.). A coiled tubing unit is on location to facilitate the mechanical integrity testing of the production casing and completion of the cement bond log. All tests have been completed successfully. Operations are currently underway to mill the toe sleeve and establish pressure and circulate fluid to clean-up the wellbore ahead of the commencement of completion operations.
Figure 1: Installation of the Christmas tree on the Jewell Well, Carter County, Oklahoma.
Activity Planned
Finalise pre-completion activities and prepare site, standby for arrival of Liberty Oilfield Services completion equipment and personnel.
Figure 2: Rigging up coil tubing unit on the Jewell Well location in Carter County, Oklahoma
Figure 3: Entering the wellbore with coiled tubing, Jewell Well location in Carter County, Oklahoma
Background
Brookside is developing its “core of the core” acreage position in the SWISH AOI located in the highly sought-after Sycamore-Woodford trend in the southern SCOOP Play in the world-class Anadarko Basin. Brookside has embarked on a potential 5-year, 20-plus well development drilling program across its three operated development areas / DSUs (Jewell, Flames, Rangers) that the Company controls in the SWISH AOI to develop a conservatively estimated 11,606,000 net BOE Prospective Resource[i] (best estimate, unrisked).
Initial wells drilled in the SWISH AOI will be targeting one of two primary producing formations in the SWISH AOI, the Sycamore formation. The Sycamore formation continues to deliver outstanding sustained productivity in nearby offsetting wells. To date, the Casillas Operating, LLC. operated Flash 1-8-5MXH well (located ~3-miles west of the Jewell DSU) has produced ~580,000 BOE in approximately 19-months, considerably higher than Brookside’s conservative estimate for the Jewell Well (see Figure 5). [ii]
Future wells will also target the Woodford formation, which just like the Sycamore formation continues to deliver outstanding sustained productivity in nearby offsetting wells. To date, the Continental Resources Inc. operated Courbet 1-27-22XHW well (located ~1-mile southwest of the Jewell DSU) has produced ~430,000 BOE in approximately 14-months.[iii] As can be seen in Figure 6, the production rate of the Courbet well is considerably higher than BRK’s conservative estimate for the Jewell Well.
Figure 4: SWISH activity map showing the location of Brookside DSUs
Figure 5: Flash Well cumulative oil production to date (barrels of oil) versus time (month) compared to the Jewell Well oil production type curve. Brookside has been very conservative in its production estimate for the Jewell Well producing from the Sycamore formation.
Figure 6: Courbet Well cumulative oil production to date (barrels of oil) versus time (month) compared to the Jewell Well oil production type curve. Brookside has been very conservative in its production estimate for the Jewell Well producing from the Woodford formation.
– ENDS –
Authority:
This announcement has been authorised for release by the Board of Directors of Brookside Energy Limited
For further information, contact:
David Prentice |
Omar Taheri |
Managing Director |
Founder |
Brookside Energy Limited |
SparkPlus |
Tel: (+61 8) 6489 1600 |
Tel: +65 8111 7634 |
|
|
Gracjan Lambert |
Eliza Gee |
Executive General Manager Commercial |
Director |
Brookside Energy Limited |
ASX Investor |
Tel: (+61 8) 6489 1600 |
Tel: +61 432 166 431 |
Forward-Looking Statements and Other Disclaimers
This announcement may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions, which are outside the control of Brookside Energy Limited (“Brookside Energy”, or “the Company”). These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal, or regulatory developments, political risks, project delay or advancement, approvals, and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Brookside Energy does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions, or circumstances on which any such forward looking statement is based.
This announcement does not constitute investment advice. Neither this announcement nor the information contained in it constitutes an offer, invitation, solicitation, or recommendation in relation to the purchase or sale of shares in any jurisdiction. Shareholders should not rely on this announcement. This announcement does not consider any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this announcement are not intended to represent recommendations of investments to persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
The information set out in this announcement does not purport to be all-inclusive or to contain all the information, which its recipients may require to make an informed assessment of Brookside Energy. You should conduct your own investigations and perform your own analysis to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this announcement.
To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts, or other representations contained in this announcement. No responsibility for any errors or omissions from this announcement arising out of negligence or otherwise is accepted.
ABOUT BROOKSIDE ENERGY LIMITED
Brookside Energy is a Perth-based ASX, and Frankfurt listed company that generates shareholder value by developing oil and gas plays in the United States, specifically the Anadarko Basin in Oklahoma. The Anadarko Basin is a proven Tier One oil and gas development province with significant existing oil and gas gathering and transportation infrastructure, a competitive and highly experienced oil and gas service sector, and a favourable regulatory environment. Brookside is executing a “Real Estate Development” approach to acquiring prospective acreage in the Anadarko Basin and adding value to it by consolidating leases and proving up oil and gas reserves. The Company then has the option of selling the revalued acreage or maintaining a producing interest. The Company is now set to scale-up its activities and asset base significantly with its operated- interests in the SWISH AOI.
Web http://brookside-energy.com.au
ABOUT BLACK MESA ENERGY, LLC
Black Mesa Energy, a Brookside Energy controlled subsidiary, is a Tulsa-based oil & gas exploration and production company focused on profitable development of petroleum properties located in the Mid-Continent oil province of the United States. Our lean and highly specialized technical and operations team is committed to providing attractive returns for our investors and shareholders by generating and drilling high quality oil and gas prospects. The founders of Black Mesa have worked together for over 30 years at companies they previously founded, including Medallion Petroleum, InterCoast Energy and Brighton Energy. Over the course of their careers, the Black Mesa team has drilled hundreds of horizontal wells and thousands of vertical wells in numerous mid-continent oil and gas basins. In addition to the financial backing from the Black Mesa shareholders, Black Mesa partners with outside investors on larger-scale projects by offering non-operated direct working interest participation.
GLOSSARY
APO WI |
After pay out working interest |
AFIT |
After Federal Income Tax |
AOI |
Area of Interest |
BBL |
Barrel |
BFIT |
Before Federal Income Tax |
BOE |
Barrels of Oil Equivalent |
COPAS |
Council of Petroleum Accountants Societies |
Development Unit or DSU |
Development Unit or drilling spacing unit is the geographical area in which an initial oil and/or gas well is drilled and produced from the geological formation listed in a spacing order. The spacing unit communitizes all interest owners for the purpose of sharing in production from oil and/or gas wells in the unit. A spacing order establishes the size of the unit; names the formations included in the unit; divides the ownership of the unit for the formations into the “royalty interest” and the “working interest”; Only one well can be drilled and completed in each common source of supply. Additional wells may be drilled in a Development Unit, but only after an Increased Density Order is issued by the Oklahoma Corporation Commission. |
Force Pooled |
The Oklahoma Corporation Commission is authorized to establish well spacing and drilling units covering any common source of supply of hydrocarbons, or any prospective common source of supply. Once the unit is established, the Commission can force pool the interests of all the owners who own interests in that unit and who have not voluntarily joined in the development of that unit. |
MBOE |
1,000 barrels of oil equivalent |
Mcf |
1,000 cubic feet |
MMBOE |
1,000,000 barrels of oil equivalent |
NPV10 |
The net present value of future net revenue before income taxes and using a discount rate of 10%. |
NRI |
Net Revenue Interest |
PDP |
Proved Developed Producing Reserves |
Pooling Agreements |
The pooling agreements facilitate the development of oil and gas wells and drilling units. These binding pooling agreements are between the Company and the operators |
Prospective Resource |
Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations. |
PUD |
Proved Undeveloped Reserves |
Reserve Categories |
These reserve categories are totalled up by the measures 1P, 2P, and 3P, which are inclusive of all reserve types:
|
STACK |
Sooner Trend Anadarko Basin Canadian and Kingfisher Counties – oil and gas play in the Anadarko Basin Oklahoma |
SCOOP |
South Central Oklahoma Oil Province - oil and gas play in the Anadarko Basin Oklahoma |
SWISH AOI |
Description of Brookside’s Area of Interest in the SCOOP Play |
Working Interest |
Percentage of ownership in a lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing, and operating a well or unit |
[i]Refer to the Company’s ASX release of 17 November 2020 for further information in respect of the prospective resource. There has been no material change to the prospective resource since that release.
[ii] Note - Brookside does not hold an interest in the Flash 1-8-5MXH well and these production results are presented for reference only.
[iii] Note - Brookside does not hold an interest in the Courbet 1-27-22XHW well and these production results are presented for reference only.