Brookside Energy Ltd (ASX:BRK) has received a strong endorsement of its Rangers Drilling Spacing Unit (DSU) in Oklahoma’s world-class Anadarko Basin with three of the largest oil and gas producers in the US confirming their participation.
Citation Oil and Gas Corporation, Continental Resources Inc. and Exxon Mobil Corporation (NYSE:XOM) subsidiary XTO Energy, Inc will hold Working Interests (WIs) in the Rangers DSU within Brookside’s SWISH Area of Interest (AOI).
This will see Houston-based Citation hold a 10.2% WI, Oklahoma City headquartered Continental with a 5.3% WI and Houston-based XTO with a 1.7% WI while Brookside retains a WI of approximately 80%.
“Strong endorsement”
Brookside managing director David Prentice said: “We are once again delighted to see some of the largest, most experienced and well-funded US operators joining with us in our SWISH AOI development program.
"This is a strong endorsement of the quality of our acreage and the operational capability of our Black Mesa team.”
Three participants
Citation is one of the largest private oil and gas companies in the US and is a very experienced and active player in the SWISH AOI and the Southern SCOOP area generally.
Continental (market capitalisation of US$19 billion) is a top 10 oil producer in the US, and the most dominant operator across the Anadarko Basin plays, with very large holdings throughout the STACK and SCOOP plays and a dominant position in the Southern SCOOP.
XTO is a subsidiary of super major Exxon Mobil (market capitalisation US$304 billion) that has extensive largely non-operated holdings within the Anadarko Basin.
A further 2.1% WI was taken up by a combination of private equity and smaller private oil and gas firms.
Active within SWISH AOI
“It is particularly pleasing to be partnering with Citation and Continental who are very active within the SWISH AOI with dominant landholdings and an impressive inventory that includes some of the best wells drilled in the highly sought-after Sycamore Woodford trend in the Southern SCOOP,” Prentice said.
Participation in the Rangers DSU includes an equivalent WI in the high-impact Rangers Well plus the opportunity to participate in future wells drilled in this DSU.
READ: Brookside Energy prepares for well completion operations at Rangers
Brookside expects to retain a ~80% WI in the Rangers DSU, with the company’s subsidiary Black Mesa as the operator.
“We are looking forward to keeping our shareholders updated as we move ahead to complete the Rangers Well for production and the commencement of sales,” the MD added.