Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has reached a milestone in its Flames-Maroons Development Plan (FMDP), with all four wells entering commercial production and initial oil and gas sales already underway.
The four FMDP wells, part of the SWISH Play within the Anadarko Basin, started early flow-back operations with encouraging results.
Fully operational
The company reports that the wells are now producing into fully operational production facilities.
Significant volumes of oil and gas have already been sold, with oil transported to a nearby pipeline terminal and gas directed to a processing facility via pipeline.
As flow-back operations continue, Brookside expects to release 24-hour peak rates (IP24), 30-day average rates (IP30), and 90-day average rates (IP90) in the coming weeks, offering further insight into the performance of the FMDP wells.
The four wells involved in the FMDP include the Fleury, Maroons and Iginla wells, drilled from the Sanford pad, and the Rocket well, drilled from the Flames well pad.
Brookside anticipates the FMDP will produce 715,000 barrels of oil equivalent (BOE) in the first year, with 78% of that volume being liquids.
This is projected to generate US$70 million in revenue and US$26.6 million in net income in the 2025 financial year.
The company expects the FMDP wells to produce a total of 2.1 million BOE over their lifespan, generating around US$164 million in revenue.
Strong foundation for future growth
Brookside believes the FMDP will set a strong foundation for future growth, marking the first of many planned developments in its Anadarko Basin portfolio.
Brookside managing director David Prentice said: “We are excited to report that all four FMDP wells are now in production and contributing to sales.
“This milestone marks the successful execution of this ambitious plan and the transition into commercial production and sales.
“The FMDP operations commenced in mid-February with the spud of the Iginla Well, and within just over seven months, we’ve achieved first sales – a tremendous effort by our team.
“Early production results are very promising, and we look forward to sharing more detailed metrics in the coming weeks.
“Our ongoing focus is to maximise value for shareholders while delivering sustainable growth across our portfolio.”