Brookside Energy Ltd’s (ASX:BRK) Orion Project joint venture with Stonehorse Energy Ltd (ASX:SHE) has successfully brought on to production the Thelma 12-1 Well in Murray County, Oklahoma, with an initial production rate of 130 barrels of oil per day (bopd).
Production optimisation is ongoing with daily production expected to stabilise at a long-term optimal volume of about 30 bopd.
"Cracking start to 2021"
Brookside managing director David Prentice said: “This is a cracking start to 2021 for Brookside, the joint venture and the Black Mesa team.
“To identify this new behind pipe discovery and to bring it into production and then to sales safely and efficiently is a credit to the whole team."
"Significant future cash flows"
Stonehorse managing director David Deloub said: “A fantastic result delivered by the Black Mesa team on behalf of Stonehorse.
“We are particularly excited by the establishment of a potential new pipeline of low-cost vertical oil wells which, in conjunction with a strengthening oil price is expected to deliver significant future cash flows to the company going forward.”
Second load to be sold in January
Early analysis indicates that an optimal daily production rate of around 30 barrels will be achieved resulting in the best balance between production rate (and associated revenue stream), efficient and safe reservoir performance and maximum oil recovery.
Sales from the Thelma Well commenced on December 30, 2020, with an initial load of 313 barrels of oil. It is estimated that a second similar-sized load of oil will be sold in the third week of January 2021.
Oil sales commenced in a strengthening oil price market, which has continued to appreciate in the new year.
The success of the workover, perforation, clean-up and production from one of the numerous identified 'behind pipe' zones of interest in the Thelma Well has provided the team with confidence in the ability to recover additional volumes from the remaining identified zones.
Capitalising on the success of the Thelma Well, the joint venture has acquired an additional 40 'held by production' (HBP) acres contiguous to the Thelma acreage.
The additional acreage gives the JV the option to drill a low-cost vertical well with access to seven known potential reservoirs, all of which are proven producers in the area.
Furthermore, future analysis has the potential to identify other potential producing formations at depth.
Successful restoration of commercial production in the Thelma Well has established a new Area of Interest in the SCOOP Play, the Bradbury Prospect, complementing Brookside’s existing SWISH AOI.
Prentice added: “It is also very pleasing to have some early success in expanding our position in the Bradbury Prospect AOI and we look forward to scaling up this new initiative and adding to our already impressive portfolio of low-risk high return projects across the Anadarko Basin”
The Thelma Well is at a depth of around 5,787 feet, about 20 miles east-northeast of Brookside Energy’s Jewell DSU in the SWISH AOI, an area that has exhibited high oil production per unit with multiple discrete high porosity high permeability target zones.