Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) is on the cusp of production from the Flames-Maroons Development Plan (FMDP) in Oklahoma’s Anadarko Basin after completing its four-well drilling program ahead of schedule and with zero HSE incidents.
This major milestone was passed with the Rocket Well, the fourth and final well in the FMDP, which Brookside describes as a transformational development program, successfully drilled and casing cemented in place.
Fabrication of surface production infrastructure has commenced, including installation of an 18-tank battery on the Sanford Pad and the company expects completion operations to begin in late July/early August.
“Track record of growth”
Brookside’s managing director David Prentice said: “Thanks to a strong financial performance over 2023 Brookside was in the enviable position of being able to keep our track record of growth intact and commence the development of the FMDP in early 2024, fully funded.
“I am very gratified at the incredible operational performance of our team to complete the drilling of these four production wells ahead of schedule bringing this important project to the cusp of production.”
Production and first sales are anticipated by late quarter three or early quarter four of 2024.
"With the FMDP drilling in the rearview mirror, we reiterate our target of growing net production to 2,500 BOEPD [78% liquids] by Q4 2024,” Prentice said.
“The FMDP production and, importantly the cash flow it will yield, forms a key plank underpinning Brookside’s forecast to grow net production to 6,300 BOEPD by ~Q3 2028."
SWISH AOI full field development production profile showing the significant and long-term production contribution from the FMDP multi-well development (orange).
Rocket drilling completed
The FMDP is targeting the highly productive Sycamore Lime and Woodford Shale formations in the core of the southern SCOOP Play in the Anadarko Basin.
Drilling of the lateral section of the Rocket Well has been completed with the well reaching a total measured depth of 17,955 feet.
Production casing was successfully run in the lateral section of the well and cemented in place in preparation for completion operations. The Kenai 19 drilling rig has been rigged down and is demobilising from location.
This well was drilled into an existing, well-defined reservoir insufficiently drained by vertical production.
The brittle nature of the Sycamore in association with this structural complexity led to the well encountering numerous hydrocarbon-filled fractures throughout the length of the lateral.
Further, the Rocket Well was effective in targeting virgin, undrained portions of the Sycamore reservoir within the broader drilling unit.
Three weeks ahead
Of the four wells in the multi-well drilling program, three were drilled from the Sanford Pad - the Fleury, Maroons and Iginla Wells - with the final well, the Rocket Well, drilled from the Flames Well pad.
This campaign began in February 2024 with the four wells cumulatively drilling ~62,420 feet(~19.03 kilometres).
Each well reached its projected pre-drill lateral length with the lateral fully cased and casing cemented in place. Each was optimally placed within its respective formation taking advantage of the thickest, undrained portion of the formation and the natural fracture regime.
These wells were drilled ahead of schedule taking only 115 days to drill vs the projected drilling time of 136 days, three weeks ahead of schedule. Brookside said the efficient and safe drilling of these wells, ahead of schedule, was a credit to the operations team and showcased the company’s operational capability.
Completion operations
The Kenai drill rig used in the program has been rigged down and is being demobilised from the Flames Pad. Sanford Pad facility construction is progressing on schedule with an 18-tank battery set on location and prefabricated piping expected to arrive on location later this week for installation.
Work has started on connecting the Sanford Pad to the nearest gas trunkline in preparation for sale of liquids rich gas once production commences.
Completion operations are expected to begin in late July/early August with flowback and first sales anticipated to begin in late Q3/early Q4.
Revenue expectations
With FMDP flow-back and first sales scheduled for late 3Q/early 4Q2024, the FMDP is forecast to produce 715,000 BOE (78% liquids) net to Brookside in its first year of operation with average production boosted to 2,300 BOEPD net to Brookside and revenue to US$70 million (Net Income US$26.6 million) in FY2025.
Revenue over the life of the well is projected to be US$164 million with net income of US$58 million from 2,100,000 BOE Net (~60% liquids).
The FMDP will be the first of many planned step changes in the growth of Brookside’s production, revenue and net income, contributing to Brookside’s success for years to come.