Perth - Brookside Energy Limited (ASX: BRK) (Brookside or the Company) notes today's announcement by Stonehorse Energy Limited (ASX: SHE) (Stonehorse) regarding the performance of the Bullard #1-18-07-UWH well and is pleased to provide the following further disclosure.
The Bullard well is a Woodford Shale producer located in the core of the southern part of the SCOOP Play in the Anadarko Basin in Oklahoma. The well is operated by Rimrock Resource Operating, LLC
Brookside has retained a 5.20% non-operated Working Interest in this well and a 20.81% Working Interest in the undeveloped acreage in the associated Drilling Spacing Unit (DSU)
Consequently (and consistent with the Company's land and leasing focussed strategy), Brookside retains its full 20.81% Working Interest in the proved undeveloped locations within this DSU
The outstanding performance of the Bullard Well (set to achieve pay-out1 in less than two years on realised pricing of US$58/Bbl and US$1.61/Mcf) highlights the quality of the reservoir and the significant reserve potential that is created when the performance of the initial or parent well in a DSU is in-line with or exceeds our pre-drill estimates
The Woodford Shale (the world-class silica rich source rock for the hydrocarbons in the Anadarko Basin) is currently being exploited successfully by many of the tier-one operators that are active in the SCOOP Play
The Woodford Shale is also the 'secondary target' (behind the Sycamore Formation) for wells drilled within Brookside's SWISH AOI acreage
Commenting on the announcement, Brookside Managing Director, David Prentice said: 'We are delighted to provide this further update on the performance of the Bullard well. The well's productivity to date has been remarkable, delivering significant and important cashflow to the business at a time when we were investing heavily in new leases in the SWISH AOI and ultimately providing the catalyst for significant additional proved undeveloped reserves in this DSU.
'This is another great example of the flexibility that our business model provides enabling us to take advantage of some early cashflow, then monetising the well bore interest while retaining full exposure to the proved undeveloped reserves.
'In addition to the stunning results we are seeing from the Sycamore in the SWISH AOI, we are now also starting to see some early data emerge from Woodford wells drilled recently in the AOI. Early indications from these wells are positive and we are looking forward to providing further updates over the coming weeks and months.'
Background
Brookside Energy Limited is a Perth-based ASX listed company that generates shareholder value by developing oil and gas plays in the world-class Anadarko Basin. The Anadarko Basin is a proven Tier One oil and gas development province with significant existing oil and gas gathering and transportation infrastructure, a competitive and highly experienced oil and gas service sector, and a favourable regulatory environment.
Brookside is executing a 'Real Estate Development' approach to acquiring prospective acreage in the Anadarko Basin and adding value to it by consolidating leases and proving up oil and gas reserves. The Company then has the option of selling the revalued acreage or maintaining a producing interest. This model is commonly used by private equity investors in the sector, and has been successfully piloted by Brookside in the northern Anadarko Basin's STACK Play.
Brookside's US partner and manager of operations, Black Mesa Energy, LLC, is an experienced mid-continent operator, which identifies opportunities and executes development under a commercial agreement with Brookside. The business model effectively assigns risk and provides commercial incentives to maximise value for both parties. The Company is now set to scale-up its activities and asset base significantly with its operatedinterests in the SWISH AOI.
Contact:
David Prentice
Tel: (+61 8) 6489 1600
Email: david@brookside-energy.com.au
Forward-Looking Statements and Other Disclaimers
This announcement may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of Brookside Energy Limited ('Brookside Energy' or 'the Company'). These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Brookside Energy does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.
This announcement does not constitute investment advice. Shareholders should not rely on this announcement. This announcement does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this announcement are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
The information set out in this announcement does not purport to be all-inclusive or to contain all the information, which its recipients may require in order to make an informed assessment of Brookside Energy. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this announcement.
To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from this announcement arising out of negligence or otherwise is accepted.
ABOUT BROOKSIDE ENERGY LIMITED
Brookside is an Australian publicly held company listed on the Australian Securities Exchange (ASX: BRK). The Company was established in 2004 and first listed via an Initial Public Offering in October 2005. The Company has established deep and valued relationships in the oil and gas sector over the last 10 years through its successful activities in the oil and gas sector focused on the mid-continent region of the United States. Brookside's goal is to build value per share through a disciplined portfolio approach to the acquisition and development of producing oil and gas assets and the leasing and development of acreage opportunities.
ABOUT BLACK MESA ENERGY, LLC
Black Mesa Energy, LLC is a Tulsa-based oil & gas exploration and production company focused on profitable development of petroleum properties located in the Mid-Continent oil province of the United States. Our lean and highly specialised technical and operations team is committed to providing attractive returns for our investors and shareholders by generating and drilling high quality oil and gas prospects. The founders of Black Mesa have worked together for over 30 years at companies they previously founded, including Medallion Petroleum, InterCoast Energy and Brighton Energy. Over the course of their careers, the Black Mesa team has drilled hundreds of horizontal wells and thousands of vertical wells in numerous mid-continent oil and gas basins. In addition to the financial backing from the Black Mesa shareholders, Black Mesa partners with outside investors on larger-scale projects by offering nonoperated direct working interest participation.
BROOKSIDE ENERGY LIMITED 
