(MENAFN - ABN Newswire) Jewell Unit Development Set to Commence Perth, Sep 12, 2019 AEST (ABN Newswire) - Brookside Energy Limited ( ASX:BRK ) (Brookside or the Company) is pleased to provide an update on activities within the Company's SWISH Area of Interest (SWISH AOI) in the world-class Anadarko Basin, Oklahoma.
- Brookside achieves another milestone as it sets out to commence development of its first operated Drilling Spacing Unit (DSU) within the SWISH AOI in the SCOOP Play
- ASX listed Stonehorse Energy Limited ( ASX:SHE ) (Stonehorse) has agreed to participate (as a well-bore only Working Interest owner) in the high impact Jewell 1-13-12SXH well (Jewell Well)
- The Jewell Well will be operated by Brookside's US partner and manager of operations, Black Mesa Energy, LLC (Black Mesa), and will be the first well to be drilled by Brookside within one of a number of operated DSU's that the Company will control within the SWISH AOI
- The majority of the elections required to be made under the previously announced Pooling Order have been received and the Company now expects to acquire a ~90% Working Interest in the Jewell DSU (~80%NRI)
- Stonehorse has further agreed to fund 100% of the costs associated with site works to build an all-weather location and set the conductor casing ahead of the commencement of drilling operations
Commenting on the announcement, Brookside Managing Director, David Prentice said: "It is very pleasing to be able to provide this update for our shareholders. A successful production test of our first operated well in the SWISH AOI will be transformational for Brookside, unlocking very significant value in terms of proved undeveloped reserves and in providing proof of concept for the larger acreage position.
"We are delighted that Stonehorse has agreed to participate in the drilling of this highly anticipated well and look forward to continuing our association with their Board and shareholders as we expand our activities in this highly sort after part of the SCOOP Play. "Drilling and completion activity within the SWISH AOI and in close proximity to the Jewell DSU in particular continues to ramp-up with operators reporting results that are very supportive of our pre-drill estimates for the area. "The last quarter of calendar 2019 promises to be a very exciting period for our shareholders and we look forward to providing regular updates as drilling operations get underway and when production testing commences."
The Board of Stonehorse has agreed (pursuant to the terms of the Step-In Agreement between LS Operating, LLC (a wholly owned subsidiary of Stonehorse) and BRK Oklahoma Holdings, LLC (a wholly owned subsidiary of Brookside) to participate as a well-bore only Working Interest owner in the Jewell Well within Brookside's SWISH AOI in the SCOOP Play.
The Jewell Well will be operated by Brookside's US partner and manager of operations, Black Mesa. The Black Mesa team have a long and very successful history, having worked together for over 30 years at companies 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.
As previously announced, the Oklahoma Corporation Commission has confirmed the establishment of an 880-acre DSU for the Jewell Unit (Pooling Order). The majority of the elections required to be made under the Pooling Order have been received and the Company now expects to acquire a ~90% Working Interest in the Jewell DSU (~80%NRI).
With the DSU established and a path to funding for the first well identified, the Company is now moving forward with preparations for the commencement of drilling operations. In this regard, Stonehorse has agreed to fund 100% of the costs associated with site works to build an all-weather location and set the conductor casing ahead of the commencement of drilling operations. These costs will ultimately be borne by the final Working Interest participants, pro-rata based on their interest in the Jewell Well.
Brookside Energy is an Perth-based ASX listed company that generates shareholder value by developing oil and gas plays in the world-class Anadarko Basin.
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.
This model is commonly used by private equity investors in the sector, and has been successfully piloted by Brookside in the northern Anadarko Basin's STACK Play.
Brookside's US partner and manager of operations, Black Mesa is an experienced midcontinent operator, which identifies opportunities and executes development under a commercial agreement with Brookside. The business model effectively assigns risk and provides commercial incentives to maximise value for both parties.
The Company is now set to scale-up its activities and asset base significantly with its operatedinterests in the SWISH AOI.
The table in link below sets out some of the key technical parameters used to describe the development potential of the Jewell Well DSU.
To view tables and figures, please visit:
About Brookside Energy Ltd
Brookside is an Australian publicly held company listed on the Australian Securities Exchange (ASX:BRK). The Company was established in 2004 and first listed via an Initial Public Offering in October 2005. The Company has established deep and valued relationships in the oil and gas sector over the last 10 years through its successful activities in the oil and gas sector focused on the mid-continent region of the United States. Brookside's goal is to build value per share through a disciplined portfolio approach to the acquisition and development of producing oil and gas assets and the leasing and development of acreage opportunities.