'Our strong performance is being overlooked': Brookside Energy
Brookside has made over US$13m from one well in seven months, to an overwhelming lack of interest
Source: iStock
Mentioned
KEY POINTS
- Brookside MD David Prentice has today cited frustration with ASX participants, given that the company remains low-profile despite strong results
- Since its completion 7 months ago, Brookside has made US$13.2m in sales from its Rangers well
- The company is established in Oklahoma, a major US energy jurisdiction often overlooked itself in favour of neighbouring Texas
Brookside Energy (ASX:BRK) has managed to recover the money it spent developing its Rangers well in Oklahoma as the frack well continues to pump out oil and gas to sales in volumes above early expectations.
Brookside completed Rangers only seven months ago, and with those funds now returned to the company through hydrocarbon sales Brookside describes its return on investment as “rapid.”
In short, Brookside has made US$13.2m over seven months from Rangers, with gross production of 173.4k barrels of oil equivalent (BOE). The ‘equivalent’ part of that figure refers to gas and condensate production equivalent to the volume of a full crude oil barrel (42 gallons, or, 190 litres.)
Geological considerations
Brookside points to the success of its Rangers well as evidence that Sycamore and Woodford geological reservoirs are high-value and high-impact hydrocarbon assets.
Brookside refers to its tenement as the ‘Swish Area of Interest (AOI);’ that acreage overlies both formations.
Oklahoma, often overlooked in favour of neighbouring state Texas, is a major oil and gas production jurisdiction in the US.
Frustrated with an uninterested market
“We are frustrated the results we are delivered are not currently being recognised by the market,” Brookside MD David Prentice said.
“[However,] we remain committed to building out the asset base, monetising operations and returning value to shareholders when we can.”
Prentice described Brookside as in search of marketing and promotional opportunities, as well as attracting recognition of the company’s significant opportunities for value.
A look at Brookside's one-year charts highlights the MD's frustrations cited today.
