Brookside Energy Ltd (ASX:BRK) has again demonstrated the increasing value of its position in the world-class Anadarko Basin of Oklahoma with the Rangers Well paying out in just seven months from the start of production.
Achievement of payout within seven months with all drilling and completion costs now fully recovered for the company’s second production well in the SWISH Area of Interest (AOI) considerably beats pre-drill estimates.
Very rapid payout
This very rapid payout is a result of strong Rangers Well production rates, a strong mix of oil and liquids-rich gas and decade-high commodity prices.
The high-impact Rangers 36-25 SXH1 Well has produced approximately 173,400 BOE (~83% oil and NGLs) in its first seven months of production, generating revenues of US$13.243 million for the same period.
“Committed to executing plan”
Managing director David Prentice said: “We are incredibly pleased to report on the payout of our second operated SWISH AOI well, this is another fantastic achievement for the business and a milestone that cannot be ignored when looking at the enormous amount of value we have created in the large inventory of high-impact, low-risk proved undeveloped wells.
“While we are frustrated that the results we are delivering are not currently being recognised by the market, we remain committed to executing our plan, building out the asset base, monetising and returning value to shareholders when we can.”
High-quality reservoirs
Brookside said the quick payout of the Rangers Well was further confirmation of the very high-quality Sycamore and Woodford reservoirs that it was exploiting in this area.
“This is particularly important as we embark on our Phase Two development drilling in the SWISH AOI with our Wolf Pack Well currently drilling.”
Prentice added: “The team is focused and we are always looking for opportunities to promote our amazing story, build confidence among our existing shareholders and importantly to attract new investors that recognise the significant opportunity that our assets represent.”