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Corporate Spotlight

“disciplined portfolio approach to the acquisition and development of producing oil and gas assets and the leasing and development of acreage opportunities”
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December - Results of Maiden Oil and Gas Reserve

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OIL & GAS

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Maiden Oil and Gas Reserves 

ASX Announcement 6 December 2018


Confirm Success of Acreage Acquisition and Re-valuation Model


Perth, Western Australia – December 6, 2018 - Brookside Energy Limited (ASX: BRK) (Brookside or the Company) is pleased to provide shareholders and investors with details of our maiden estimate of oil and gas reserves attributable to our holdings in the worldclass Anadarko Basin in Oklahoma.


Highlights 

  • Net oil and gas reserves of 3.45 MMboe attributable to ~20% of Brookside’s total Anadarko Basin holdings 
  • Proved reserves (PDP and PUD) estimated at 2.83 MMboe (~82% of total reserves), with a further 617 Mboe attributable to the Probable reserve category 
  • Combined NPV10 (PDP, PUD and Probable) of US$12.5 million with forecast future net revenues of US$37.75 million 
  • NPV10 per acre at ~US$30,000 confirms highly successful and scalable acreage acquisition and re-valuation business model 

Commenting on the announcement, Brookside Managing Director, David Prentice said:


“These outstanding results clearly demonstrate the effectiveness of our acreage acquisition and re-valuation business model, the quality of the acreage and oil and gas reservoirs identified within it and very importantly, the calibre of our team in Oklahoma that is responsible for identifying, securing and developing these opportunities.


In the short term we will continue to work hard to close the gap between our current market capitalisation of ~US$10 million and the combined value of these proved reserves and the potential of the remaining 80% of our Anadarko Basin holdings.asd 


Beyond that we are very excited by the opportunity we have to reward our shareholders as we scale-up both reserves and acreage, with development of our acreage and increases to our holdings in this world-class basin.”


Background

Brookside’s partner and manager of US operations, Black Mesa Production, LLC (Black Mesa) has prepared an estimate of the oil and gas reserves and future net revenues for certain petroleum property interests owned by Brookside. These interests consist of non-operated working interests and royalty interests in Oklahoma (see Appendix 1 for details of the relevant properties and operators). The estimated net reserves and future net revenues for these interests are summarised by reserve category in Table 1.


The estimated future net revenue shown in Table 1 should be realised from the sale of the estimated net reserves after the deduction of Black Mesa’s “back-in after payout” (as set out in the Drilling Program and Acquisitions Program Agreements), royalties, production taxes, direct operating costs and required capital expenditures, where applicable. Future net revenue is before the deduction of federal and state income taxes.


The estimates shown are for proved developed producing, proved undeveloped, and probable reserves. The estimates do not include any possible reserves that may exist within these properties. These estimates do not include any value that could be attributed to interests in undeveloped acreage beyond those tracts for which undeveloped reserves have been estimated.


The property interests evaluated in this release were obtained by Brookside pursuant to the terms of the Drilling Program and Acquisitions Program Agreements between Black Mesa Production and BRK Oklahoma Holdings, LLC (BRK Oklahoma) (refer to the Company’s ASX announcement dated May 24, 2016).


Click here to view the full announcement

LATEST ASX ANNOUNCEMENT

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Casey Capital Becomes a Substantial Shareholder Brookside Establishes Advisory Board

ASX Announcement 25 October 2018

Perth, Western Australia – October 25, 2018 - Brookside Energy Limited (ASX: BRK) (Brookside or the Company) is pleased to welcome a new substantial shareholder, Casey Capital to its register. Casey Capital has acquired its holding via on-market purchases in another strong indication of the increasing market recognition for the acreage acquisition and re-valuation business model we are executing in the worldclass Anadarko Basin plays in Oklahoma. The Company is also pleased to announce the establishment of an Advisory Board, which will be chaired by Casey Capital, Chairman, Mark Casey.

About Casey 

Capital Casey Capital is a privately-owned enterprise with over 30 years of experience in development and funds management across all sectors and over AUD2 billion in projects under management. Casey Capital has a strong track record in applying tested development methods to maximize asset value through working closely with partners and applying stringent due diligence, project management and financial metrics.

In addition to its property focus which includes interests in residential, commercial and retirement villages across Australia, Casey Capital holds strategic investments in the digital financial services technology space along with several other interests in the digital space. 

Casey Capital joins, Merchant Funds and The Twentieth Century Motor Company as substantial shareholders alongside several other sophisticated and institutional shareholders on the Company’s share register.

Role of the Advisory Board 

The role of the Advisory Board will be to assist with the communication of the very successful “real-estate/property” aspect of Brookside’s unique business model to investors in Australia that are familiar with the returns that can be realized from the acquisition and development of property in Australia and to generally assist in raising the profile of the Company and its success in the Australian investment community.

As outlined above, the Company is pleased to announce the appointment of Casey Capital Chairman, Mr Mark Casey, as the first member of the Advisory Board. Mark will chair the Advisory Board and joins our Managing Director, David Prentice as a founding member of the Advisory Board.

In the coming months, the Company will look to appoint an additional Advisory Board member with skills and experience that complement the existing Brookside Board, the executive team and the team at Black Mesa (our partner and manager of US operations).

These Advisory Board appointments are non-executive roles and with the exception of Managing Director David Prentice, members will be compensated via the issue of unlisted optionsi .


Commenting on the announcement, Casey Capital’s Chairman, Mark Casey said; 

“Casey Capital is pleased to announce that it has acquired a strategic stake in Brookside Energy.

“This is an exciting investment that fits well into the Casey Capital vision as it encompasses both excellent real estate holdings along with growing cash flows as more wells in Oklahoma come on line. 

“We are also pleased to accept the offer from Brookside to sit on its Advisory Board and provide invaluable expertise in all facets of real estate, from acquisitions to leasing negotiations along with providing significant financial resources. 

“We are very pleased that Casey Capital and Brookside have joined forces to continue and increase the momentum the Company has established in creating a world-class company in the oil and gas sector in the US via an Australia owned entity.”

Commenting on the announcement, Brookside Managing Director, David Prentice said; 

“We are absolutely delighted to welcome Casey Capital as a substantial shareholder and Mark as Chairman of our Advisory Board. 

“We think there is very strong alignment between the success that Mark and Casey Capital have enjoyed in Australia in the property sector with what we are doing in the Anadarko Basin in Oklahoma. 

“I’m very excited to be working with Mark and very much look forward to the role the Advisory Board will play in advising and guiding us as we continue to build on our portfolio in this world-class basin and importantly making sure that we realise value for our shareholders here in Australia.” -

Click here to view the full announcement

ANADARKO BASIN

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ANADARKO BASIN, OKLAHOMA

The Anadarko Basin is a geologic feature covering approximately fifty thousand square miles primarily in west-central Oklahoma, but including the upper Texas Panhandle, southwestern Kansas, and south-eastern Colorado. The basin contains sedimentary deposits ranging in thickness from two thousand feet on its northern and western flanks to forty thousand feet in its southern portion. Significant oil and gas discoveries have been made throughout this region, including the Hugoton-Panhandle Gas Field of Kansas, Oklahoma, and Texas in the 1920’s and numerous others in Oklahoma, such as the West Edmond Field, the Union City Field, and the Elk City Field, after 1950.

The Anadarko Basin is recognised as a heavyweight among United States shale regions in terms of oil and natural gas production.  The basin has a long history of oil and gas production with current production estimated to be in the order of 600,000 barrels of oil equivalent per day.

The combination of science, technological advancement, and experimentation over the last three years (in a sub US$60 oil price environment) has led to broad productivity gains across the so called shale regions. The implementation of these improved drilling and development techniques has seen a dramatic surge in activity across the Anadarko Basin. The region’s current active rig count of 129 is behind only the Permian Basin in Texas, with the Anadarko Basin recognised as sitting among the top most productive oil and gas regions based on EIA data.

The majority of the activity within the Anadarko Basin is centred on the STACK (Sooner Trend Anadarko Canadian and Kingfisher) and SCOOP (South Central Oklahoma Oil Province) plays of Oklahoma.

Current estimates point to annual drilling and completion capital expenditure across the STACK and SCOOP Plays at in excess of US$3.0 billion.  This investment is driven largely by the productivity of the wells being drilled in these plays, with IHS estimating a break-even point of under US$30 per barrel for the top producing wells in the STACK Play, which is comparable to wells drilled in the top Permian plays.

The Company commenced its leasing campaign in the STACK and SCOOP Plays in early 2016 and this program is currently ongoing. Further details in relation to the Company’s holdings across the STACK and SCOOP Plays can be found via disclosures listed under the Investors tab.

WWW.BROOKSIDE-ENERGY.COM.AU

PRESENTATION

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