Brookside Energy Ltd (ASX:BRK) had notched up another success in the SWISH Area of Interest (AOI) in Oklahoma’s world-class Anadarko Basin with commercial production of oil and rich gas underway at the high-impact Flames 3-10-1S-3W WXH1 Well.
This “company-making” milestone at the company’s third SWISH AOI well was passed during the very early part of the flow-back and stimulation fluid recovery operations.
“Fantastic achievement on its own”
Managing director David Prentice said the establishment of commercial production on the Flames Well “is a fantastic achievement on its own”.
However, “when combined with the now sustained strong production from our other two very successful SWISH AOI wells (Jewell and Rangers) it marks the achievement of a company-making milestone – the finalisation of our HBP (Held by Production) program.”
Brookside has an approximate 71.3% working interest in the Flames Well, which is operated by its controlled subsidiary Black Mesa Energy LLC.
The location of the Flames Well and Brookside’s three operated SWISH AOI DSUs.
Flow rates increasing
Oil and gas flow rates are increasing in line with the company’s modelled flow-back profile.
Although 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 begin commercial production and sales.
Brookside has already sold significant volumes of oil and rich gas into the spot market with oil trucked to a nearby pipeline terminal and gas transported via pipeline to a gas processing plant.
“As a team, we are delighted to have completed this part of our strategy and we would like to thank our shareholders for their support, the Black Mesa team and all the great people working across all the service companies and consultants who have helped us to reach this point, safely, on budget and with fantastic production outcomes,” Prentice said.
Strong oil, gas and NGL prices
The combination of premium quality light sweet crude and liquids-rich gas production and an unhedged production allows Brookside to take full advantage of the current strength of oil, gas and NGL prices and all future price upside.
With commercial production now established in the Flames DSU, this unit is classified as HBP. This classification will ultimately enable Brookside to book proved developed and proved undeveloped reserves within this DSU.
The company will update the market with IP24 (peak rate), IP 30 and IP 90 production rates as these are achieved.
Prentice added: “With this done, we now embark on the next part of our strategy, to extract maximum value for the large inventory of proven low-risk, high-return development wells that this HBP program has created.”
About Flames Well
Kenai Drilling Company drilled the Flames Well in Carter County, Oklahoma.
It was drilled as a full-length horizontal well targeting the Woodford Formation at an average depth of ~7,800 feet. The well was drilled to a total measured depth of ~18,140 feet.