Brookside Energy (ASX: BRK) has boosted its leasing facility to US$4 million to give the company more cash to “aggressively” pursue acquisitions across Oklahoma’s Anadarko Basin in the United States.
Additionally, the facility maturity date has been extended to the end of 2019.
All other facility terms remain the same as when it was enacted in June last year.
This latest news follows the company’s announcement yesterday it has boosted its non-operated working interest in the recently commissioned Anadarko Basin well from 3.9% to 8%.
The newly producing well has also exceeded the company’s expectations by producing 1,400 barrels of oil equivalent per day (boepd). In its first 27 days of operation, the well has produced 34,000bpoed at 76% oil.
According to Brookside, the well is on track to achieve pay out in less than two years.
Earlier this month, Brookside reported it had grown its lease holding by 17% in the Anadarko Basin.
The company’s working interests in the basin now exceed 2,000 acres, which it has achieved in less than two months.
Brookside has a stake in 27 wells in the Anadarko Basin with its interest ranging from less than 1% to 48.3%.
In February, Brookside stated it expected to earn US$2 million over the upcoming 12 months from its interest in its producing assets in the basin.
The company achieved its first oil and gas sales in May last year with Brookside’s net production sitting at 300boepd by the end of February.
However, this production is anticipated to increase to 1,000boepd from an extra 14 wells that are in various stages of development.
Brookside’s wholly-owned subsidiary BRK Oklahoma Holdings possesses oil and gas royalties in Blaine County. The company also has leasehold interest in about 282 acres in Payne County – both in Oklahoma.
The market reacted positively to Brookside’s news with the company’s share price rising almost 6% to A$0.018 by early afternoon trade.