Brookside Energy's Gapstow Full Field Development Nears Completion
BRK (BRK) Share Update August 2024 Monday 5th
Brookside Energy Announces Progress on Gapstow Full Field Development
Brookside Energy Limited (ASX: BRK) has provided an update on its Gapstow Full Field Development project, with the final well expected to reach total depth this week.
Instant Summary:
- Final well of Gapstow Full Field Development expected to reach total depth this week.
- Tank battery construction and completion operations have commenced.
- Production from Gapstow FFD expected to start in early Q4 2024.
- Estimated production of ~150 BOEPD (70% liquids) net to Brookside over initial 2 years.
Project Progress
Brookside Energy Limited (ASX: BRK) has announced significant progress in its Gapstow Full Field Development (FFD) project, operated by Continental Resources. The final well in the nine-well project is expected to reach total depth this week. The other wells have already reached total depth and have been cased with production casing. The average total measured depth of the wells is approximately 22,000 feet, with lateral lengths of around 12,500 feet.
Continental Resources has also commenced tank battery construction and completion operations for the drilled wells. Preparation for frac operations on the remaining drilled uncompleted (DUC) wells is ongoing, and full-time completion operations are imminent.
Production Timeline
Production from the Gapstow FFD is anticipated to begin in early Q4 2024. The project is expected to contribute approximately 150 barrels of oil equivalent per day (BOEPD), with 70% of the production being liquids, net to Brookside over the initial two years. This production will be in addition to the output from Brookside's Flames Maroons Development Plan (FMDP), which is expected to commence in late Q3 or early Q4 2024.
About the Gapstow FFD
The Gapstow FFD program is located on acreage south of and contiguous with Brookside's Bruins and Jewell Development Spacing Units (DSUs). The project is centered around the highly productive Gapstow Well, which has produced approximately 415,000 barrels of oil and almost 1 billion cubic feet of gas in 11 months. The nine wells are being drilled in a 'wine rack' pattern targeting the Sycamore Lime and Woodford Shale formations.
Brookside is participating as a non-operator in seven of the nine Gapstow FFD wells, with a cumulative working interest of 20.9% and a cumulative net revenue interest of 15.7%. This participation includes two wells targeting the Sycamore Lime formation and five targeting the Woodford Shale formation.
The completion of the final well in the Gapstow FFD and the commencement of production in early Q4 2024 are expected to positively impact Brookside Energy's stock. The anticipated production of approximately 150 BOEPD net to Brookside will contribute significantly to the company's revenue stream. Additionally, the simultaneous progress in tank battery construction and completion operations demonstrates efficient project management, which could further boost investor confidence.
Investor Reaction:
Analysts are likely to react positively to the news, given the project's potential to enhance Brookside Energy's production capabilities and revenue. The efficient progress in drilling and completion operations, coupled with the anticipated early Q4 production start, may lead to a favorable outlook for the company's stock. However, investors will be keenly watching the actual production figures and any potential delays in the timeline.
Conclusion:
Investors should keep an eye on Brookside Energy's upcoming production commencement in early Q4 2024. The successful completion of the Gapstow FFD project and the additional production from the Flames Maroons Development Plan could provide significant growth opportunities for the company. Staying informed about Brookside's progress and strategic developments will be crucial for making well-informed investment decisions.