Brookside Energy Reports Strong Financial and Operational Growth in 2024

3 min read | January 30, 2025 04:59 PM PST | By Team Kalkine Media

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Brookside Energy Reports Strong Financial and Operational Growth in 2024 — Image source: shutterstock

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Highlights

Record Cash Flow Growth: Achieved A$21.1 million in cash receipts and a 667% quarter-on-quarter surge in net operating cash flow.

FMDP Completed Under Budget: Field Development Management Plan (FMDP) finalized ahead of schedule, with CAPEX savings of ~15%.

Production Milestones: SWISH Play wells delivered cumulative production of 2.5 million BOE, with FMDP wells reaching record output.

Brookside Energy Ltd (ASX:BRK) reported a robust quarter, achieving A$21.1 million in cash receipts from sales and a significant increase in net operating cash flow, reaching A$12.2 million—marking a 667% quarter-on-quarter growth. The strong financial performance resulted in an end-of-quarter cash balance of A$11.3 million, reinforcing financial stability despite capital expenditure on development projects.

FMDP Completed Ahead of Schedule and Under Budget

The company successfully executed its Field Development Management Plan (FMDP) ahead of schedule and below budget. The total capital expenditure for the project amounted to approximately A$36 million net to Brookside, reflecting a ~15% saving against the original budget. The investment was primarily funded through operational cash flow and cash reserves, highlighting financial discipline in large-scale project execution.

With FMDP wells now operational, Group Net Production reached a record 226,189 barrels of oil equivalent (BOE), with liquids comprising 67% of the total. This represented a 129% quarter-on-quarter increase, achieving an average daily net production rate of 2,459 BOE per day in Q4 2024.

The four FMDP wells delivered a combined gross initial production (IP) rate of 4,330 BOE per day over 24 hours (IP24) and 3,761 BOE per day over 30 days (IP30), with liquids yields of approximately 80%. On a normalized basis, a single well with a 10,000-foot lateral produced around 1,400 BOE per day gross for IP24 and 1,200 BOE per day gross for IP30. These production results aligned with the performance of the Flames Well, the parent well in the FMDP.

Brookside increased its average working interest in FMDP wells to approximately 70%, securing a larger share of production revenue and enhancing profitability.

SWISH Play Wells Achieve Record Production

The SWISH Play wells, operated by Brookside, recorded gross production of 392,435 BOE during the quarter, bringing cumulative production to 2.5 million BOE as of December 31, 2024. Production remained strong despite temporary shut-ins of the Jewell and Flames wells for strategic recovery measures.

Temporary production shut-ins were implemented to mitigate potential interference from Continental Resources' Gapstow Full Field Development (FFD) near the Jewell well and FMDP operations near the Flames well. Production levels returned to pre-shut-in levels following the operational adjustments.

Gapstow Development Begins Production

Continental Resources' Gapstow Full Field Development (FFD) commenced production and sales during the quarter, with strong initial production rates recorded. These volumes and associated cash receipts will be recognized in subsequent quarters. The Gapstow development is expected to contribute approximately 150 BOE per day (70% liquids) net to Brookside over an initial two-year period, boosting Proved Developed Producing (PDP) reserves.

Progress on US Listing and Capital Restructuring

Brookside advanced its plans for a US listing on the NYSE American exchange through the issuance of American Depositary Shares (ADSs). Additionally, the company completed a share capital consolidation, with shares resuming normal trading on October 25, 2024.

2025 Strategy: Growth and Drilling Expansion

Building on its operational success in 2024, Brookside outlined its 2025 strategy, emphasizing production growth and targeted drilling expansion. The company plans to develop three new SWISH Play 10,000-foot lateral horizontal wells, with the first well expected to spud in Q1 2025. Preparatory activities, including pad selection, surface agreements, and regulatory approvals, are already underway.

Brookside Energy continues to expand its operational footprint, strengthening production capabilities while maintaining financial resilience.

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