Latest news with #BrooksideEnergy
Herald Sun
5 days ago
- Business
- Herald Sun
BRK rides high in Oklahoma
Brookside Energy completes Bruins Well stimulation safely, on time and within budget Preparations are now underway for flow-back and testing at Brookside's ninth well in Oklahoma's SWISH Play acreage The Australian junior expects initial production and sales from Bruins this quarter as planned Special Report: Brookside Energy has successfully completed stimulation operations at its Bruins Well as it prepares for flow-back, testing, and initial production and sales. Brookside Energy (ASX:BRK) is continuing it run of success in Oklahoma's prolific Anadarko Basin with the Bruins Well stimulation operations finished safely, on time and within budget. Preparations are now underway for flow-back, and testing and first sales are on track for this quarter from Brookside's ninth well in the SWISH Play acreage. The company says the high-intensity fracture stimulation of the Woodford Formation, located in the southern half of SCOOP (South Central Oklahoma Oil Province), was executed with 42 stages, all of which were successfully completed. Significant step in SWISH Managing director, David Prentice said: 'We're very pleased to have safely and efficiently completed stimulation operations on the Bruins Well, on time and on budget. 'Bruins represents another important step in the development of our SWISH Play acreage. With flow-back now imminent and first sales on track for this quarter, we look forward to this well contributing to cash flow and further validating the quality of our acreage.' 'I'm immensely proud of the team for the care and diligence they continue to demonstrate in delivering these projects safely, on schedule and within budget.' Prentice added that Bruins represented a key step in unlocking the full potential of Brookside's Bruins Drilling Spacing Unit (DSU), and the company is focused on achieving optimal production and cash flow from the well in the near term. Highly encouraging for Brookside is that real-time monitoring during the operations confirmed that each stage effectively stimulated the reservoir, with pressures, sand and fluid volumes aligning with the company's pre-completion design. The plugs which served as check valves to provide zonal isolation during the high-intensity multi-stage stimulation of the well have been successfully drilled out and production tubing has been installed. Well placed in market The latest news from Bruins confirms Brookside's reputation as a smart operator in the American oil and gas sector. The company has low operating costs of only ~$9 per barrel of oil equivalent (BOE), a strong cash position and plus 2P net reserves at 12.35 million barrels of oil (MMBO), giving the resilience to withstand the current choppy conditions in the market. Prentice has said that even if Brookside stopped drilling after Bruins and prices stayed low for the next five years, the company would still generate more cash flow than its current cap during that time. 'Best of all, our oil and gas reserves would still be in place ready to develop when prices rebound,' he said. This article was developed in collaboration with Brookside Energy, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Originally published as Brookside Energy rides high in Oklahoma
Mercury
01-05-2025
- Business
- Mercury
Brookside's strategy fuels success in US oil and gas sector
Brookside Energy has reported a 50% increase in Proved Developed Producing (PDP) reserves to 2.65 million BOE, bringing its PDP reserves replacement ratio of 268% The latest results come as one of the only ASX-listers in the American oil and gas sector looks to production from its ninth well in Oklahoma's SWISH Play next quarter In response to the current moderating oil prices, Brookside is focusing on near-term cash generation alongside disciplined development pacing and operational efficiencies Special report : Brookside Energy has reported another strong quarter of production with upticks reserves and cash from its acreage in Oklahoma's prolific Andarko Basin. The latest results have been released as the Australian junior prepares for first production from the Bruins Well, which has been successfully spudded after reaching an impressive total measured depth of 16,718 feet within 30 days. Brookside (ASX: BRK) has just installed production casing at Bruins ahead of schedule and the company is looking forward to its ninth well in the SWISH Play contributing to its production and cash flow when it comes online in the second quarter of 2025. Sustained volumes Brookside's Group Net Production for the March quarter totalled 172,762 barrels of oil equivalent (BOE) – 56% liquids. This reflected the company's share of production from the non-operated wells in the Gapstow development and the continued strong performance of its operated SWISH Play wells, including the FMDP wells. Production for the period averaged 1,920 BOE per day on a net basis, with liquids-rich barrels continuing to drive revenue and margin strength. While Gapstow production volumes were recognised in the March quarter, Brookside's share of this revenue has not yet been received from the operator and will be reported in the second quarter. Cash receipts during the quarter were A$18.1 million from sales volumes of approximately 285,132 BOE, at a realised price per BOE of US$39.91. The company finished the quarter with a strong cash position of A$12.68 million, up almost 12 per cent on the previous quarter. Reserves up Brookside's independently assessed year-end reserves showed material growth across all categories: Proved Developed Producing (PDP) stands at 2.65 million BOE, up 50.1 per cent; Total Proved (1P) is 4.98 million BOE, up 21.8 per cent; and Total Proved and Probable (2P) is 12.35 million BOE, up 6.8 per cent. The PDP reserves increase of 1.41 million BOE more than doubled Brookside's FY2024 production of 525,456 BOE, representing a very robust 268 per cent replacement ratio. Step change Brookside's non-operated portfolio delivered a step-change in production during the March quarter following the full-cycle contribution from eight Gapstow wells operated by American company Continental Resources. Over the first 90 days of production the Gapstow wells achieved gross production of ~1.65 million BOE and Brookside's net production was ~27,500 BOE. Brookside's cumulative Net Revenue Interest (NRI) is ~16%7, with the production and cash flow materially enhancing its financial performance. These results validate the productivity of the SWISH Play and Brookside's strategy of complementing its operated developments with high-quality non-operated wells. SWISH Play Brookside's SWISH Play-operated wells continued to perform in line with expectations during the quarter, with cumulative production from the eight wells reaching 2.75 million BOE. Notably the liquids yields – a key element of free cash flow generation – remain within forecasted levels. Additionally, Brookside's four FMDP wells, which mark its first operated multi-well pad development in the SWISH Play, are performing as forecast. They are also outperforming (on a normalised basis) the Flames Well, the 'parent well' in the FMDP Drilling Spacing Units (DSU). Balanced strategy Managing director David Prentice said the results underscored the strength of Brookside's asset base and efficiency in converting investments into long-life producing reserves. 'While continuing to expand our drilling inventory and pursue future growth opportunities, we remain committed to capital discipline. 'In response to moderating oil prices, Brookside is adopting a balanced strategy, focusing on near-term cash generation, operational efficiency, and disciplined development pacing, while seeking to maximise shareholder returns – consistent with the approach of leading US companies in the sector.' He said this strategy gave the company the resilience it needs to withstand the current conditions: 'The oil market volatility is serving as a reminder that our business is built to thrive in tough markets. 'We run lean with lower than industry average operating costs around $9 per BOE so we remain cash flow positive even at lower oil prices. 'In fact, if we stop drilling after Bruins and prices stayed low for the next five years, we'd still generate more cash flow than our current cap during that time. 'And the best part, our oil and gas reserves would still be in place ready to develop when prices rebound.' Brookside's SCOOP SWISH is in the southern part of the of the Anadarko Basin, in an area dubbed SCOOP, where other companies have followed Brookside's lead. SWISH, by the way, stands for Sycamore and Woodford shale In the Southern Half of SCOOP, while the latter acronym stands for South Central Oklahoma Oil Province. Prentice said: 'We made this discovery and some of the clever work we did early on in prospecting delivered up these results. 'We named our particular part of the world in southern SCOOP the SWISH. And the plays, or the sub play if you like, have been so successful that the name has been picked up by the other operators. 'We're now in a situation where we've got some of the larger, more successful companies surrounding us, so we're right in the middle of a very hot area.' Brookside is also making progress to become more accessible to the huge number of American investors interested in the O&G sector by listing on the New York Stock Exchange. This article was developed in collaboration with Brookside Energy, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Originally published as Brookside's strategy fuels success in US oil and gas sector
Yahoo
29-03-2025
- Business
- Yahoo
Returns Are Gaining Momentum At Brookside Energy (ASX:BRK)
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So on that note, Brookside Energy (ASX:BRK) looks quite promising in regards to its trends of return on capital. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Brookside Energy: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = AU$12m ÷ (AU$108m - AU$15m) (Based on the trailing twelve months to June 2024). So, Brookside Energy has an ROCE of 13%. On its own, that's a standard return, however it's much better than the 7.2% generated by the Oil and Gas industry. View our latest analysis for Brookside Energy Above you can see how the current ROCE for Brookside Energy compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Brookside Energy . Investors would be pleased with what's happening at Brookside Energy. Over the last five years, returns on capital employed have risen substantially to 13%. The amount of capital employed has increased too, by 1,049%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. One more thing to note, Brookside Energy has decreased current liabilities to 13% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. Therefore we can rest assured that the growth in ROCE is a result of the business' fundamental improvements, rather than a cooking class featuring this company's books. To sum it up, Brookside Energy has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with a respectable 98% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. In light of that, we think it's worth looking further into this stock because if Brookside Energy can keep these trends up, it could have a bright future ahead. If you'd like to know more about Brookside Energy, we've spotted 2 warning signs, and 1 of them is significant. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
