Brookside Energy Ltd (ASX:BRK) has a new substantial shareholder in WA-based Great Southern Flour Mills Pty Ltd securing a 7.18% stake.
Great Southern Flour purchased 63 million shares on November 13 after buying 3,962,306 shares on November 11 and 5 million on August 27.
This takes the total number of shares held in the company with a large stake in Oklahoma’s prolific Anadarko Basin to almost 97 million shares.
New funding initiative
Brookside last week launched a new funding initiative to secure capital for drilling and completion of the highly anticipated Jewell Well in the basin’s SWISH Area of Interest.
The company 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.
Jewell well support
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.
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.”
Jewell timetable
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.