Brookside Energy Limited: Jewell Well Operations Update Completion and Flow-back Operations
Perth, Western Australia – 25 August 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 1).
HIGHLIGHTS
- Operations to mill out all the isolation plugs used in the multi-stage hydraulic stimulation have been completed successfully, on schedule, safely and without incident
- Circulation of drilling fluid utilised in these operations is underway prior to the commencement of flow-back operations, with fluid in the wellbore being circulated to clean-up and remove any remaining debris from the removal of the isolation plugs and the stimulation process
- Oil was recovered to surface during these operations
Present Operations
A coiled tubing unit was mobilised to the Jewell Well location and rigged up. The isolation plugs used for each stimulation stage were subsequently successfully milled out and drilling fluid is being circulated in the wellbore to clean-up and remove any remaining debris from the milling operations and the stimulation process. In line with expectations, during operations to circulate the drilling fluid, oil was recovered to surface. These operations have been completed on schedule, safely and without incident.
Activity Planned
Complete the clean-up operations and prepare to commence for flow-back operations. This final stage of the overall completion operations, to recover fluid used in the stimulation process and flow the well to the permanent production facilities on location is expected to take approximately 14-days to complete.
Commenting on the announcement, Brookside Managing Director, David Prentice said:
“We are once again delighted to report the successful execution of this next stage of the completion process on the Jewell Well.
“The operational success we continue to achieve in our SWISH AOI, reflects the good work and diligence of the Black Mesa team, our specialist contractors and consultants and all of the services companies and partners we have used on this project.
“We are looking forward to reporting on the flow-back and initial production results over the coming weeks and to providing updates as we move forward with our Rangers development.”
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).
Prospective Resources Cautionary Statement
The estimated quantities of petroleum that may potentially be recovered by the application of future development projects relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
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 Continental Resources, Inc. (Continental) (NYSE: CLR) 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 2). [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, another Continental operated well, the 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 3, the production rate of the Courbet well is considerably higher than BRK’s conservative estimate for the Jewell Well.
Figure 1: SWISH activity map showing the location of Brookside DSUs
Figure 2: 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 3: 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
Managing Director
Brookside Energy Limited
Tel: (+61 8) 6489 1600
Gracjan Lambert
Executive General Manager Commercial
Brookside Energy Limited
Tel: (+61 8) 6489 1600
Omar Taheri
Founder
SparkPlus
Tel: +65 8111 7634
omar@sparkplus.org
Eliza Gee
Director
ASX Investor
Tel: +61 432 166 431
eliza@asxinvestor.com.au
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 an Australian public company listed on the Australian (ASX: BRK) and Frankfurt (8F3: FSE) stock exchanges. The Company was founded in 2015, to focus on the mid-continent region of the US, where our deep and valued relationships enable us to work with local communities to ensure sustainable growth and value creation through the safe and efficient development of energy assets. Focused on exploitation not exploration, the Company generates shareholder value through a disciplined portfolio approach to the acquisition and development of oil and gas assets and the leasing and development of acreage opportunities. The Company’s US subsidiary and manager of operations, Black Mesa, is an experienced mid-continent operator, which identifies opportunities and executes development for Brookside. Our business model effectively assigns risk and provides commercial incentives to maximize value for both parties.
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:
- "1P reserves" = proven reserves (both proved developed reserves + proved undeveloped reserves).
- "2P reserves" = 1P (proven reserves) + probable reserves, hence "proved AND probable."
- "3P reserves" = the sum of 2P (proven reserves + probable reserves) + possible reserves, all 3Ps "proven AND probable AND possible.
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.