Brookside Energy (ASX:BRK) has beefed up its position in the SWISH Area of Interest in Oklahoma to 2,000 acres — five times larger than a previous $30,000 per acre play.
AT A GLANCE
- Brookside manages to bring its SWISH acreage up to 2000 acres
- It did so in an area where drillers such as Encana Corp and Continental Resources are active — including production of 1,000 barrels of oil equivalent per day for Encana from eight horizontal wells within a 1,280 acre area
- It is aiming for a repeat of its STACK play, where it managed to work up acreage to a $30,000 per acre valuation
The company told its shareholders today that through a series of trades it was able to consolidate its holdings in the SWISH AOI to 2,000 acres.
It now has a core of operated drilling spacing units (the amount of land allocated for the drilling of a well) while it also has an interest in “a number” of non-operated units — five of these units in various stages, from drilling to producing.
Brookside is currently trying to repeat what it managed to do at the nearby STACK AOI, where it was able to work up valuation of $30,000 per acre — or a net present value of $12.5 million.
However, with SWISH now five times larger than STACK, Brookside will be hoping for material upside.
“We are delighted to achieve another milestone in the scaling-up of our ’land and leasing’ business model in the world-class Anadarko Basin plays in Oklahoma,” managing director David Prentice said.
He also said the team would continue to seek trading opportunities in the area.
About Brookside Energy
Brookside Energy Limited is an Australian publicly held company listed on the Australian Securities Exchange (ASX:BRK).
The company was reinstated to official quotation on the ASX on 5 August 2015, following completion of the company’s recapitalisation.
Brookside Energy has established deep and valued relationships in the oil and gas sector over the last 10 years through its successful activities in the industry focused on the Anadarko Basin in the United States.
Its 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.
This content is produced by Star Investing in commercial partnership with Brookside Energy. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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