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Brookside Energy Ltd

Brookside Energy secures US$1.15 million by sale of well bore interests to Stonehorse Energy

This transaction is another example of Brookside’s successful business model working in practice - acquire, upgrade, re-value and then sell.

Brookside Energy Ltd - Brookside Energy secures US$1.15 million by sale of well bore interests to Stonehorse Energy
The company has monetised value after bringing the wells into production

Brookside Energy Ltd (ASX:BRK) has signed an agreement with Stonehorse Energy Ltd (ASX:SHE) for the sale of well bore interests from within Brookside’s Anadarko Basin holdings in Oklahoma, US.

Stonehorse has agreed to purchase working interests in the Bullard #1-18-07-UWH and Henry Federal #1-8-5XH wells, located in the SCOOP and STACK Plays in the Anadarko Basin.

The acquirer will pay a total of US$1.15 million for a 15.6% working interest in the Bullard well and a 2.3% working interest in the Henry Federal well.

This equates to an average of about US$21,000 per acre (based on assumed ultimate full-field development of four to five wells per drilling spacing unit or DSU).

Brookside will retain a working interest in both well bores and importantly, the company will retain 100% of its interest in the proved undeveloped reserves in each of these DSU’s.

Brookside managing director David Prentice said: “We are delighted that Stonehorse has exercised its right to step-in to these wells.

“Consistent with their production focussed strategy, this acquisition will add significant cashflows to their emerging portfolio of oil and gas assets in the Anadarko Basin.

“The pipeline of very high quality opportunities that Stonehorse can access via the agreement with Brookside and the relationship with Black Mesa Energy, sets them apart from many of the other ASX listed oil and gas companies that are active in the US basins.

Successful business model

“Most importantly for Brookside shareholders, this transaction is yet another example of our very successful business model working in practice (acquire, upgrade, re-value and then sell).

“In addition to the obvious benefits that come from our ability to generate working capital at any point during the value creation process, this transaction provides another valuation data point for the future potential for our broader undeveloped acreage position.

“Our strategy is working – through the hard work of the Black Mesa Energy team in Oklahoma, we are adding value every day and we have the flexibility to crystallise value in the acreage position whenever it makes sense to do so.”

Quick facts: Brookside Energy Ltd

Price: 0.009 AUD

Market: ASX
Market Cap: $8.99 m
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