Brookside Energy Ltd’s (ASX:BRK) shares are trading about 9% higher intra-day at 1.2 cents after achieving payout for its Landreth BIA 1-14H well in the Anadarko Basin plays, Oklahoma, US in just 11 months.
The Marathon Oil, Co. (NYSE:MRO) operated well (Brookside 2.5% working interest) has produced about 208,000 barrels of oil and 801,000 MCF (million cubic feet) of gas in its first 12 months of production (about 342,000 BOE total).
Brookside’s 2.5% Interest in this well has generated a net revenue of US$230,000 in less than 12-months and achieved payout (i.e. the time taken for a well to recover 100% of drilling, completion and operating costs from sales).
The results were achieved from a 4,600-foot lateral producing from the Meramec formation in the world-class Anadarko Basin plays.
The company is now set to receive 75% of future net revenue from this well following the return of drilling and completion capital (about US$210,000) to the drilling joint venture.
Importantly, about 70% of the total net revenue forecast for this well is generated in the first 28-months of its operation.
Brookside managing director David Prentice said: “We are pleased to report another very significant milestone for both the company and the drilling joint venture, with our first well achieving payout.
“For a well to return 100% of the drilling and completion capital in just 11-months in the current pricing environment is remarkable.
“The Anadarko Basin Plays continue to deliver excellent reservoir quality rock that is driving outstanding economics and supports higher per acre valuations.
“We are very much looking forward to replicating this kind of result in some of our higher working interest wells and ultimately into our SWISH opportunity where we are focused on securing much larger working interests.
“Our non-operated working interest wells keep delivering and the opportunity to “scale this up” as we increase our Anadarko basin land holdings is very exciting.”