Brookside Energy begins oil & gas sales as Jewell Well enters production

  • Sep 14, 2021
  • Proactive Investors

Brookside Energy Ltd (ASX:BRK) has passed a major milestone with commercial production and sales established at the high-impact Jewell 13-12-1S-3W SXH1 well in the SWISH Area of Interest (AOI) in the world-class Anadarko Basin of Oklahoma, USA.

This was achieved during the early part of the flow-back and stimulation fluid recovery operations at Jewell and comes only four months after the well was spudded.

Providing further encouragement is that oil and gas flow rates are already approaching Brookside’s pre-drill base case volume estimates and are increasing in line with the modelled flow-back profile.

Brookside managing director, David Prentice said: “Today marks a major milestone in the early life of our company with our first operated horizontal oil and gas well in the SWISH AOI, successfully turned to sales just four months after the well was spudded.”

The early rate of production has already allowed Brookside to commence commercial production and sales with production now turned from temporary facilities to the company’s permanent production facilities on the Jewell Well location.

Material volumes of oil and gas have already been sold, with oil trucked to a nearby pipeline terminal and gas transported via pipeline to a DCP Midstream gas processing facility.

SWISH AOI activity map showing the location of Brookside DSUs.

The Jewell Well is producing premium light sweet crude and liquids-rich gas and with unhedged production Brookside can take full advantage of the strengthening pricing environment for all three production streams - oil, gas and natural gas liquids (NGLs).

“I’m obviously very proud of everyone involved (consultants, contractors and service companies) and I’m delighted to be able to report these early results from our flagship Jewell Well, but I would like to make special mention of the great people that make up the Black Mesa team, whose years of hard work and diligence have delivered this success,” Prentice said.

“Our industry operates around the clock, and we have little time to reflect on this success as we move forward with the Rangers Well, the next well in our potential five-year, 20-plus well development drilling program, and we look forward to bringing everyone news on that front and importantly the ongoing production performance of the Jewell Well over the coming weeks.”

With commercial production now established, the Jewell Drilling Spacing Unit (DSU) is classified as Held by Production (HBP), paving the way for the establishment of proved developed and proved undeveloped reserves in this DSU.

Oil and gas sales will continue as flow-back operations continue, and the company will report an IP24 (peak rate), IP30 and IP90 rates as these are achieved.

Brookside is developing its 'core of the core' acreage position in the SWISH AOI in the highly sought-after Sycamore-Woodford trend in the southern SCOOP Play in the Anadarko Basin.

Location map showing Brookside’s three operated SWISH AOI DSUs.

The company has embarked on a potential five-year, 20-plus well development drilling program across its three operated development areas/DSUs (Jewell, Rangers, Flames) that it controls in the SWISH AOI to develop a conservatively estimated 11,606,000 net BOE Prospective Resource (best estimate, unrisked).

Initial wells drilled in the SWISH AOI are targeting one of two primary producing formations in the SWISH AOI, the Sycamore formation.

This formation continues to deliver strong sustained productivity in nearby offsetting wells. To date, the Continental Resources, Inc. (NYSE:CLR) (NYSE:CLR) operated Flash 1-8-5MXH well about three miles west of the Jewell DSU has produced ~580,000 BOE in approximately 19-months, considerably higher than Brookside’s conservative estimate for the Jewell Well.

Future wells will also target the Woodford formation, which just like the Sycamore formation continues to deliver sustained productivity in nearby offsetting wells.

To date, another Continental operated well, the Courbet 1-27-22XHW well around one mile southwest of the Jewell DSU has produced ~430,000 BOE in approximately 14-months.