Brookside Energy Limited (ASX: BRK) (Brookside or the Company) is pleased to provide an update on its activities in the World-Class Anadarko Basin plays in Oklahoma, US.
- Landreth BIA 1-14H well achieves payout in just 11-months=
- ~342,000BOE produced in the first 12-months of production (61% oil)
- Well has generated net revenuei of US$230,000 in less than 12-months for Brookside’s 2.5% Working Interest
- Brookside set to receive 75% of future net revenue from this well following the return of drilling and completion capital to the Drilling Joint Venture
- Importantly ~70% of the total forecast net revenue for this well is generated in the first 28-months of its operation
- This very strong “capital recycle rate” is a driver of increased drilling and completion activity, more high quality oil and gas reserves and ultimately higher per acre valuations
Commenting on the announcement, Brookside Managing Director, David Prentice said;
“We are pleased to report another very significant milestone for both the Company and the Drilling Joint Venture, with our first well achieving payout. For a well to return 100% of the drilling and completion capital in just 11-months in the current pricing environment is remarkable.
“The Anadarko Basin Plays continue to deliver excellent reservoir quality rock that is driving outstanding economics and supports higher per acre valuations.
“We are very much looking forward to replicating this kind of result in some of our higher Working Interest wells and ultimately into our SWISH opportunity where we are focused on securing much larger Working Interests.
“Our non-operated Working Interest wells keep delivering and the opportunity to “scale this up” as we increase our Anadarko basin land holdings is very exciting.”