Brookside Energy Ltd (ASX:BRK) continues to enhance the quality of its acreage in the SWISH Area of Interest (AOI) in Oklahoma’s world-class Anadarko Basin with the high-impact Rangers 36-25 SXH 1 Well returning strong daily production rates during flowback.
The Rangers Well, the company’s second of three development wells in the AOI, has recorded a daily production rate of 1,310 BOEPD, ~87% oil and gas liquids, with only 21% of stimulation fluid recovered to date.
Production at Rangers, in which Brookside holds a working interest of ~80%, is modelled to continue to increase steadily as more stimulation fluid is recovered.
“Already a strong producer”
Managing director David Prentice said: “We are very pleased with the results from the flowback of our Rangers Well to date.
"This well is already a strong producer generating significant revenue for Brookside and our shareholders.”
The Rangers Well has already produced about 73,160 BOE (~87% oil and gas liquids) during only the first 2.5 months of production, reinforcing the quality of Brookside’s SWISH acreage and its strategy of drilling low-risk high-impact development wells.
Gross revenue on an 8/8th’s basis generated by the Rangers Well to date is already estimated to exceed US$6.75 million based on WTI at US$110 per barrel and natural gas at US$8 per Mcf which will be highly accretive to Brookside's balance sheet.
“Proved up value of Rangers DSU”
“As expected, the Rangers Well is exhibiting a flowback profile consistent with our pre-drill estimates and modelled reservoir characteristics, yielding more total liquids than our highly successful Jewell Well, at a similar stage of stimulation fluid recovery,” Prentice said.
“Combined with our Jewell Well and, the soon to be on production Flames Well, Brookside’s prospects have never looked better with growing revenue and production combined with a strong pricing environment.
“With the successful drilling, completion and flowback of our Rangers Well we have proved up the value of our Rangers DSU and reinforced to the market our ability to deliver on our strategy, quickly cementing our position as a top operator and significant ASX listed energy company."
Oil and gas sales will continue as flowback operations continue, and the company will report an IP24 (peak rate), IP30 and IP90 production rates as these are achieved.
About the Rangers Well
Rangers Well is operated by Black Mesa Energy, a controlled subsidiary of Brookside, and was drilled by Kenai Drilling Company in Stephens County, Oklahoma.
The well was drilled as a mid-length horizontal well targeting the Sycamore Formation at an average depth of ~9,750 feet.
It was drilled to a total measured depth of ~17,460 feet, with ~7,500 feet of lateral section drilled in the Sycamore that was subsequently cased with production tubing to be perforated and treated to allow production of oil and rich gas.