Brookside Energy Limited (ASX: BRK) is an Oil & Gas company. It is an Australian publicly held company, listed on the Australian Securities Exchange. It has established deep and valued relationships in the oil and gas sector over the last ten years through its successful activities in the industry focused on the mid-continent region of the United States.
The company on 7 March has released its investor presentation where it has mentioned about several business operations. The company has maintained a business model based on strategic acreage sales. It has closed several strategic acreage sales from its non-operated STACK Play holdings during a period of the last twelve months. BRK achieved multiples of up-to ten times average undeveloped acreage acquisition costs, validating its business model. Moreover, the company has reinvested $2.5 million in a highly accretive SWISH AOI leasing campaign. The sale proceeds were from acreage sales.
The company is well placed for Step Change Growth going forward. It has core world-class Anadarko Basin holding secured with visibility to expand up to 6,000-acres. Currently, thirteen wells are producing, and further nineteen wells are at various stages of development. It has an experienced team with a long history of success in the United States. The company has a strategy of off-balance sheet funding which drives growth and minimises dilution. The company has further several investment propositions that can act as a catalyst for growth.
It has maiden reserves of 3.45 MMboe which is attributable to ~20% of the company’s acreage position. It has a combined Net Present Value of US$12.5 million with forecast future net revenues of US$37.75 million. The net present value per acre valuation is US$30,000. It is a confirmation of successful and scalable acreage acquisition and re-valuation business model. The SWISH AOI leasing campaign is underway which targets seven high-grade development units in the liquids-gas condensate core of the world-class SCOOP Play.
The non-operated Stack play wells have strong productivity. The forecast average time to achieve pay-out is approximately twenty-nine months. The parent wells (PDP wells) prove-up a large number of high-quality low-risks proved undeveloped wells (PUD’s) in each development unit.
The SWISH platform of the company will provide transformational reserve growth for the company. The SWISH AOI leasing campaign has delivered a potential ~6,000-acre position in the liquids-gas condensate core of the Woodford-Sycamore Trend of the SCOOP Play, with a focus on seven high-grade development units with the opportunity to establish a high working interest (operated position) in four units.
On the price-performance front, the stock of Brookside Energy Limited last traded at $0.013 with an increase of 18.182% during the day’s trade and with a market capitalisation of $10.99 million. The stock has generated a negative YTD return of 8.33% and a negative return of 15.38% over the last three months (As on 06 March 2019). It has a 52-week high price of $0.023 and a 52-week low price of $0.010.
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