Crude Oil

Brookside up 10% as second Oklahoma well puts out over 1,000bpd

Thu 12 May 22, 12:54pm (AEST)
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Key Points

  • Brookside Energy has recorded over 1,000 barrels of oil equivalent per day from its Rangers well in early flowback
  • Company expects revenues to reflect values in the proximity of AUD$3m with WTI over $100bbl
  • Rangers Well is the second of a three well program for the company’s ‘Swish’ Area of Interest acreage

Brookside Energy (ASX:BRK) is up 10% in late morning trade to 2.1cps as the company sees over one thousand barrels of oil equivalent per day produced from its Rangers well, the second well onsite the company's Oklahoma project. 

Broken down, the company notes flowback providing 80% oil and some 20% gas and natural gas liquids, at the same time only 17% of stimulation fluid has been recovered, providing evidence the Rangers well could be Brookside's most high-value asset yet. 

So far, the Rangers well has produced some 27,400boe since being bought online this year. 

Map showing location of Brookside Energy's three wells
Map showing location of Brookside Energy's three wells

Revenue on back of strong flows 

Brookside is confident it has also generated significant revenue of some $3.4m with sales made while West Texas Intermediate (WTI) crude benchmarks sat raised above USD$100bbl. 

Brookside Energy operates in Oklahoma and has so far brought online its Jewell and Rangers well at the project. 

It is to further develop its third well, the Flames well, in the coming months. Its three well program is managed in a JV structure with Brookside retaining the lions share of interest at 80%. 

It works alongside Stonehorse Energy (ASX:SHE), a smallcap which recently diversified its portfolio into Queensland's Surat Basin. 

Oil volatility could see dramatic price rise 

The price of oil has dipped in recent days as the EU stepped back from its strong plans to launch an embargo on all Russian oil. 

JP Morgan predicted last month a full embargo on Russian oil could push Brent Crude prices up to $185bbl. 

While it appears that embargo plan has been significantly softened, should the price rise to $185bbl, the significant benefits for Brookside Energy, and all other oil producers, are obvious. 

Of course, that would conversely worsen cost of living pressures across the Western sphere. 

Brookside Energy's charts compared to the XEJ Energy Index
Brookside Energy's charts compared to the XEJ

 

Written By

Jonathon Davidson

Journalist

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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