Brookside Energy Ltd (ASX:BRK) has launched a new funding initiative to secure capital for drilling and completion of the highly anticipated Jewell Well in the SWISH AOI in Anadarko Basin of Oklahoma, USA.
The company has agreed to collaborate with experienced leading national accounting and business advisory firm Hall Chadwick to launch the well-bore funding initiative.
A unit trust has been established, the SABO Development Trust, in which investors will be offered the opportunity to subscribe for units.
The funding initiative is also supported by Brookside’s partner in the Orion Project Joint Venture, Stonehorse Energy Limited (ASX:SHE) which has also registered its interest in participating as a working interest participant in the Jewell well alongside the SABO Development Trust.
"Pleased to collaborate"
Managing director David Prentice said: “We are very pleased to be collaborating with both Hall Chadwick and Stonehorse on this funding initiative for the Jewell well.
“During the last two years the Sycamore-Woodford trend in the SWISH AOI has delivered some remarkable results, confirming the very high productivity of these reservoirs and demonstrating the value that can be unlocked through modern horizontal drilling and completion techniques.”
SABO Development Trust will fund a working interest share of the drilling and completion costs for the Jewell well and, once production and sales are established, will receive its proportionate share of the revenue generated from the well.
The Jewell well will be operated by the highly experienced Oklahoma based team from Brookside’s controlled subsidiary Black Mesa Energy, LLC.
Next important step
Prentice continued: “Successful development of the Jewell well will not only generate significant returns for the particpants but will also be the next important step in proving up the value of the oil and gas reserves that will be established in Brookside’s three drilling spacing units in the SWISH AOI.
“This is a very exciting time for us and our shareholders and we look forward to keeping them informed as we progress through to the end of the year and into 2021.”
Collectively, the Black Mesa team have more than 200 years of commercial, technical, and operational experience having drilled over 1,000 vertical wells and almost 200 horizontal wells onshore in the United States.
A working timetable for the Jewell well development assumes that a rig is contracted in December 2020, with earthworks to build the location and set the conductor to commence in early January 2021.
The well is expected to spud in the March quarter of 2021, with completion operations to be scheduled for mid-April 2021 and first sales expected in the June quarter of 2021.