Brookside Energy Ltd (ASX:BRK) has moved its Rangers oil and gas well into production.
The energy asset — one of three wells in a held by production plan (HBP) over Brookside’s acreage in Oklahoma’s Anadarko Basin — has officially entered commercial operations, and the company says “significant volumes” have already been sold.
Rangers is producing premium light, sweet crude and liquids-rich gas, and with unhedged production, the company can take full advantage of the strong pricing environment for all three production streams: oil, gas, and natural gas liquids.
With commercial production now established, the Rangers drill spacing unit (DSU) is classified as HBP, paving the way to establish proved developed and proved undeveloped reserves in this DSU.
Oil and gas sales will advance as flow-back operations continue, and Brookside will report an IP24 (peak rate), IP30 and IP90 rates as these are achieved.
“Company-making wells”
Brookside managing director David Prentice said the company was “absolutely delighted” to deliver news of the milestone at Rangers to shareholders.
“There is an enormous amount of effort required from everyone involved to efficiently drill and complete these wells and to then carefully flow them back and finally to establish production,” he explained.
“We are all very proud of the work completed by the Black Mesa team and all our contractors, consultants and the various teams of the service companies involved.
“We now have our second high-impact well in SWISH online and delivering production into record-high prices.
“These are company-making wells, with very strong production and economic metrics that are transforming our business as they come into production, bringing cash flow, and importantly adding high-quality low risk reserves of oil and gas that we can now monetise.
“It is a wonderful time to be a Brookside shareholder.”
Bringing Rangers online
Rangers is operated by Brookside’s subsidiary, Black Mesa Energy.
The well was drilled to a total measured depth of around 17,460 feet, with roughly 7,500 feet of lateral section drilled in the Sycamore Foundation.
This was subsequently cased with production tubing, which was perforated and treated to allow oil and rich gas production.
Commercial production commenced during the very early part of the flow-back and stimulation fluid recovery operations at the well, in which Brookside holds an approximate 80% working interest.
Promisingly, the company says oil and gas flow rates are increasing in line with its modelled flow-back profile.
Even though the well is still in the very early part of the flow-back and stimulation fluid recovery process, the rate of oil and rich gas production has already allowed it to commence commercial production and sales.
Ranger’s end products have been sold into the spot market, with oil trucked to a nearby pipeline terminal and gas transported via pipeline to a gas processing plant.