Brookside Energy hits new production rate record in Oklahoma

Brookside Energy ASX BRK oil production Oklahoma

Oil and gas developer Brookside Energy (ASX: BRK) has pleased its shareholders by reporting more record-breaking figures from the Anadarko Basin plays in Oklahoma, where it is developing a range of oil assets in partnership with Black Mesa Production.

Its most recent well to commence production lies within its Stack Play holdings located within the Cana Wet Gas part of Blaine County in Oklahoma. Brookside’s acreage is currently subject to active development through horizontal drilling with a new well going online that’s producing 15% oil and 85% gas.

Brookside said its relatively small stake in the new well currently operating in the Anadarko basin “continues to deliver excellent initial production rates,” with an initial production rate of around 5,400 barrels of oil equivalent (boe) per day and a 30-day production rate of around 4,200 boe per day.

Brookside also said that its well has produced about 154,000 boe in its first 38-days of flow back and is “set to pay-out in less than 18-months.”

Significantly, the record production rate achieved is almost 3.5 times higher than the rate achieved from the parent well drilled in the recently divested Stack Play development unit, which achieved a sale price of US$28,600 per acre, according to Brookside.

Upbeat drilling

Brookside holds a 2% working interest in this well and the associated 1,280-acre development where it was drilled.

The well was funded via its drilling joint venture and was completed via a 30-plus stage stimulation design to a depth of 23,000 feet, with a treatment rate of close to 80bbl/min and average treatment pressure of 10,000PSI.

According to the operator, Black Mesa, the area is “highly prospective for productive Meramec”, with approximately 450 feet of gross thickness and “excellent reservoir qualities.”

The area currently has 20 rigs running and several large well-funded US-listed oil and gas companies currently active including Devon Energy, Marathon Oil, Newfield Exploration, Continental Resources and Cimarex Energy.

According to Black Mesa, the Stack Meramec Play is one of the select few plays in the United States that remain economic at today’s prices.

“We are once again delighted to be able to report on a new record initial production rate from one of our non-operated working interest wells in the Stack Play. Excellent initial production rates like these continue to demonstrate the very high productivity and reserve potential of wells being drilled across the Anadarko Basin plays and ultimately justify further increases in per acre valuations,” said David Prentice, managing director of Brookside Energy.

Brookside also reports that the initial production data from its most recent well (together with sustained longer-term production data), “will be used to establish the quantity of recoverable undeveloped oil and gas contained within the development unit” and the attendant value per acre.

Today’s production update helped Brookside Energy shares to gain over 23% and currently trading at A$0.016 per share.

Filip has written in both Australia and abroad during his career, covering everything from the global economy, politics and geopolitical issues to commodities and small cap stocks on the ASX.