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Highlights
- Brookside Energy focuses on expanding drilling inventory in the Anadarko Basin.
- Strategic initiatives include adding new drilling locations and leveraging geological data.
- Plans for three lateral wells and projected growth in production and capital efficiency.
Brookside Energy (ASX:BRK) has announced its strategy for 2025, focusing on disciplined growth and value creation through targeted drilling in the Anadarko Basin, Oklahoma. The company aims to expand its inventory of high-quality oil and gas drilling locations while capitalizing on the significant geological data it has accumulated.
Instead of initiating full-field development immediately, Brookside intends to build a robust inventory by identifying additional premium drilling sites and conducting a strategic drilling program. This decision reflects a cautious approach amid recent oil price fluctuations, with the company anticipating continued volatility into the early months of 2025.
Expansion of Drilling Inventory
Brookside Energy is actively working to enhance its inventory in the SWISH Play area of the Anadarko Basin. The company is progressing toward adding a fifth Drilling Spacing Unit (DSU), which will strengthen its ability to replace reserves and support sustainable growth. These efforts include identifying underdeveloped opportunities and leveraging extensive geological, geophysical, and reservoir data to unlock further value.
As part of this expansion, Brookside plans three horizontal wells with 10,000-foot laterals in 2025. Preparatory work, including surface agreements and regulatory approvals, has already commenced for the first well, expected to spud in the first quarter. The remaining two wells are scheduled for the third quarter and will target newly identified locations within the basin.
Focus on Sustainable Growth
Brookside's strategy includes maintaining financial flexibility and allocating capital responsibly. The company prioritizes projects aligned with its long-term growth objectives, ensuring that its expenditures remain balanced with cash flow. For 2025, Brookside has allocated a budget of $18.3 million (US), which includes drilling, completion, and land costs.
Production from the SWISH Play is projected to grow significantly, with a potential increase of 30%-40% above the 2024 average. Brookside expects its net production in 2025 to double compared to pre-FMDP levels, driven by contributions from the ongoing development program and the 2025 wells.
Upcoming Developments
Brookside will present an updated five-year development plan in a webinar early in the new year. The company’s growth initiatives for 2025 include strategic acreage acquisition, prospecting, and leveraging its existing data to enhance operational efficiency. This forward-looking approach ensures the company remains well-positioned to navigate market conditions while delivering sustainable growth.
