November 2, 2022

Brookside Energy Ltd Reaches Major ‘Building a Business’ Milestone with Commercial Production at Third SWISH AOI Well

Brookside Energy Ltd (ASX:BRK) has scored another success in the SWISH Area of ​​Interest (AOI) in Oklahoma’s world-class Anadarko Basin with commercial oil and gas-rich production underway in blazes at high impact 3-10-1S- 3W WXH1 Well.

This “start-up” step at the Company’s third SWISH AOI well was achieved during the very first part of the flowback and stimulation fluid recovery operations.

“Fantastic achievement in itself”

Managing Director David Prentice said the establishment of commercial production on the Flames Well “is a fantastic achievement in itself”.

However, “when combined with the now sustained strong production from our other two very successful SWISH AOI wells (Jewell and Rangers), it marks the achievement of a significant milestone for the company – the completion of our HBP program ( Held by Production)”.

Brookside has an approximate 71.3% working interest in the Flames well, which is operated by its controlled subsidiary Black Mesa Energy LLC.

The location of the three UAD SWISH AOIs operated by Flames Well and Brookside.

Flow rates increase

Oil and gas flows increase in accordance with the company’s modeled backflow profile.

Although the well is still in the early stages of the flowback and stimulation fluid recovery process, the rate of oil and rich gas production has already allowed it to begin commercial production and sales.

Brookside has previously sold large volumes of oil and rich gas on the spot market, with oil transported by truck to a nearby pipeline terminal and gas transported by pipeline to a gas processing plant.

“As a team, we are thrilled to have successfully completed this part of our strategy and would like to thank our shareholders for their support, the Black Mesa team and all the great people working across all of the service companies. and consultants who have helped us get to this point, safely, on budget and with fantastic production results,” Prentice said.

High Oil, Gas and NGL Prices

The combination of premium light sweet crude and liquids-rich gas production and unhedged production allows Brookside to take full advantage of the current strength in oil, gas and NGL prices and any future price increases.

With commercial production now established in the DSU Flames, this unit is classified as HBP. This classification will ultimately allow Brookside to account for proved developed and proved undeveloped reserves under this DSU.

The company will update the market with IP24 (peak rate), IP 30 and IP 90 production rates as they are achieved.

Prentice added: “With that done, we are now embarking on the next part of our strategy, to extract maximum value from the large inventory of proven low-risk, high-reward development wells that this HBP program has created.”

About Flames Well

Kenai Drilling Company drilled the Flames well in Carter County, Oklahoma.

It was drilled as a full length horizontal well targeting the Woodford Formation at an average depth of approximately 7,800 feet. The well was drilled to a total measured depth of approximately 18,140 feet.