Brookside Energy Advances Multi-Well Development Plan with Successful Plug Drill-Out
BRK (BRK) Share Update September 2024 Tuesday 17th
Brookside Energy Completes Key Phase in Multi-Well Development Plan
Brookside Energy Limited (ASX: BRK) has successfully completed the drilling out of composite frac plugs on all four FMDP wells, marking a significant milestone in their Flames-Maroons Development Plan.
Instant Summary:
- All composite frac plugs successfully drilled out on all four FMDP wells.
- Well cleanup operations have begun to clear debris from drill-out and stimulation phases.
- Flowline installation and wellhead connections are in progress.
- First sales from the four FMDP wells are targeted for late Q3/early Q4 2024.
Operational Update
Brookside Energy Limited has provided an operational update on their multi-well Flames-Maroons Development Plan (FMDP) located in the southern SCOOP Play, Anadarko Basin. The company has successfully completed the drilling out of composite frac plugs, which were used to isolate zones during well stimulation, across all FMDP wells.
Cleanup operations are now underway to circulate drilling fluids and remove debris from the drill-out and stimulation processes. These operations are proceeding on schedule, and flowline installation along with wellhead hookup operations have also commenced.
Incident Report
During the 'rig down' phase of the plug drill-out operations, a reportable incident occurred, resulting in some damage to contractor equipment. However, it is important to note that no injuries were sustained by any personnel, and surface production facilities were not affected.
Production Timeline
First sales from all four FMDP wells are anticipated in late Q3 or early Q4 2024. This milestone positions Brookside to increase net production to 2,500 BOEPD (78% liquids) by Q4 2024. The FMDP is forecast to produce 715,000 BOE (78% liquids) net to Brookside in its first year of operation, with average production boosted to 2,300 BOEPD net to Brookside and revenue to US$70 million (Net Income US$26.6 million) in FY2025.
Future Projections
Revenue over the life of the wells is projected to be US$164 million with net income of US$58 million from 2,100,000 BOE Net (~60% liquids). The FMDP will be the first of many planned step changes in the growth of Brookside’s production, revenue, and net income, contributing to the company’s success for years to come.
The successful completion of the plug drill-out and the commencement of well cleanup operations significantly de-risk the FMDP project. This positions Brookside Energy for meaningful production growth and further value creation for shareholders. The company's stock is likely to see positive momentum as investors react to these developments.
Investor Reaction:
Analysts are likely to react positively to Brookside Energy's announcement, given the successful completion of a critical phase in the FMDP. The projected increase in production and revenue will likely bolster investor confidence and could lead to a positive market response.
Conclusion:
Investors should keep an eye on Brookside Energy's progress as they move towards first sales from the FMDP wells. The company's strategic execution and operational success are key factors that could drive future stock performance. Staying informed on Brookside's developments will be crucial for making well-informed investment decisions.