Brookside Energy increases Oklahoma oil and gas holdings by 17%
US-focused Brookside Energy (ASX: BRK) is moving quickly to capitalise on the world class oil and gas plays of Oklahoma’s Anadarko Basin, growing its lease holding by 17%.
Through efforts made by its partner and US operations manager Black Mesa Production, the Western Australian company has increased its working interests in the basin to more than 2000 acres (8.5 sq km) in less than two months.
The increase in holdings is located within the company’s leasing focus areas, targeting the up-dip liquids rich “core” situated along the Anadarko Basin margin.
Brookside today reported that leasing and acquisition activities were continuing, with plans to capture additional acreage through the remainder of the 2018 calendar year.
“The company is continuing to move quickly to capitalise on a short window in which to build on its material position in the high-margin repeatable parts of the Anadarko Basin plays,” it stated.
The leasing has been funded by a previously announced US$3 million facility provided by Oklahoma Energy Consultants. Brookside said it had commenced discussions to expand this facility to provide further leasing and acquisition liquidity.
Last week, Brookside said it expected to earn around US$2 million over the next 12 months due to the steady ramp up of oil and gas production at its Stack oil and gas acreage in Oklahoma.
There are currently nine wells on the acreage producing a net output of about 300 barrels of oil equivalent per day. However, Brookside’s interest in an additional 14 wells that are either already drilling, being completed or are currently permitted are expected to boost production to around 1000 boepd.
According to the company, the development and production results, as well as the recent acquisitions, provided “upward momentum for undeveloped acre valuations” and confirmed Brookside’s acreage accumulation and re-valuation business model.
“Strong production rates drive large reserves per well, which in turn drives higher leasehold acreage values,” Brookside managing director David Prentice said last week.