Brookside Energy Ltd sits in a strong cash position for the quarter, achieving A$21.1 million in cash receipts from sales, with net operating cash flow surging 667% quarter-on-quarter to A$12.2 million.
Record operating cash flow, along with A$3.1 million in additional cash inflows, partially offset the A$19.0 million in capital expenditure related to the FMDP. As a result, the company ended the period with a strong cash balance of A$11.3 million.
The strong financial performance demonstrates the company’s strong operational performance.
Brookside Energy project locations in the Anadarko Basin.
FMDP completed ahead of schedule and under budget
Brookside successfully completed its Field Development Management Plan (FMDP) ahead of schedule and under budget, with the remaining capital expenditure (CAPEX) settled during the quarter.
The total FMDP CAPEX amounted to approximately A$36 million net to Brookside, reflecting a ~15% saving against the initial budget.
This investment was primarily funded through cash reserves and operational cash flow, demonstrating the company's financial discipline and efficiency in executing large-scale projects.
With the FMDP wells now operational, Group Net Production reached a record 226,189 barrels of oil equivalent (BOE), with liquids comprising 67%, for the December quarter—representing a 129% increase quarter-on-quarter.
This record output enabled the company to meet its fourth-quarter production forecast, with Net Production averaging 2,459 BOE per day.
The four FMDP wells delivered combined gross initial production (IP) rates of 4,330 BOE per day over 24 hours (IP24) and 3,761 BOE per day over 30 days (IP30), with liquids yields of around 80%.
On a normalised basis, a single well with a 10,000-foot lateral produced around 1,400 BOE per day gross for IP24 and 1,200 BOE per day gross for IP30. These results align with those of the Flames Well, the parent well in the FMDP.
Brookside increased its average working interest in FMDP wells to approximately 70%, securing a larger share of production revenue and enhancing profitability.
SWISH Play wells deliver record output
Operated SWISH Play wells recorded gross production of 392,435 BOE during the quarter, bringing cumulative production to 2.5 million BOE as of December 31, 2024.
Cumulative production for SWISH operated wells normalised to a notional 10,000-foot lateral and cumulative gross production as at December 31, 2024 for the SWISH operated wells.
Production growth remained strong despite the Jewell and Flames wells undergoing expected recovery to pre-shut-in levels following temporary shut-ins during the quarter.
These measures were implemented to mitigate potential interference from Continental Resources’ Gapstow full-field development (FFD) near the Jewell well and FMDP operations near the Flames well.
SWISH Project well locations.
Gapstow development begins production
The Continental Resources-operated Gapstow Full Field Development (FFD) started production and sales during the quarter, delivering strong initial rates. Production volumes and associated cash receipts will be recognised in subsequent quarters.
Production is expected to contribute around 150BOE/per day (70% liquids) net to Brookside over an initial two years as well as boosting PDP reserves.
Production by quarter net to Brookside’s Working Interest and net of royalties.
Progress on US listing and capital restructuring
The company advanced preparations for its planned listing of securities via American Depositary Shares (ADSs) on the NYSE American exchange. Brookside also completed its share capital consolidation, with shares resuming normal trading on 25 October 2024.
2025 strategy targets growth and drilling expansion
Building on its 2024 operational success, Brookside outlined its 2025 strategy, prioritising inventory growth and targeted drilling. Plans include three new SWISH Play 10,000-foot lateral horizontal wells, with the first well set to spud in Q1 2025.
Pre-spud activities, such as pad selection, surface agreements and regulatory approvals, are already underway.