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Highlights
- Brookside Energy outlines plans to expand inventory through targeted drilling in the Anadarko Basin.
- Aims to enhance production and inventory to support sustainable growth in 2025.
- Focuses on maintaining financial flexibility and strategic capital allocation.
Brookside Energy (ASX:BRK) has announced its strategic growth plans for 2025, focusing on expanding its drilling inventory within Oklahoma’s Anadarko Basin. The company aims to build on its 2024 successes by identifying and securing high-quality drilling locations and conducting a targeted drilling program. These initiatives are part of a broader effort to enhance sustainable growth and create long-term value.
Expanding Drilling Inventory
Brookside Energy has initiated efforts to increase its inventory of low-cost, high-margin undeveloped drilling locations. The company is particularly focused on the SWISH Play area of the Anadarko Basin, where it plans to add a fifth Drilling Spacing Unit (DSU). This expansion is expected to enhance Brookside's capacity to replace developed reserves and extend its current four-year drilling inventory plan.
To achieve these goals, Brookside Energy is leveraging its extensive geological, geophysical, and reservoir data, as well as its expertise in the basin. The strategy includes evaluating underdeveloped areas to identify further opportunities for growth.
Flexible Growth Amid Market Dynamics
Acknowledging recent fluctuations in oil prices, Brookside Energy plans to remain flexible in its approach. The company has prioritized financial discipline, maintaining a robust balance sheet and aligning capital allocation strategies to market conditions. This enables the company to pursue opportunities responsibly while ensuring operational resilience.
Brookside’s Managing Director David Prentice emphasized the company’s commitment to disciplined growth and value creation. The company’s 2025 drilling program will include three horizontal wells, the first of which is scheduled to commence in the first quarter.
Projected Growth and Capital Allocation
Brookside expects significant growth in production from its SWISH Play developments. The company projects net production in 2025 to increase by 30% to 40% compared to 2024 averages. Capital expenditure for 2025 is estimated at approximately $28.7 million, covering drilling, completion, and land acquisition costs.
In addition to production growth, Brookside anticipates its EBITDA to reach $28 million, driven by its focused drilling program and increased production volumes. The company’s capital allocation strategy ensures that these investments are aligned with cash flow to maintain financial flexibility.
Brookside Energy will share further details about its updated five-year plan and 2025 growth initiatives through a webinar early next year, providing a comprehensive overview of its strategic goals.
