Key Highlights

  • Brookside has completed the Acquisition of Lone Star Exploration & Production's US oil and gas interests for a purchase price of US$1.114 million.
  • The acquired portfolio generated approximately 11,099 BOE during the quarter ended 30 June 2026, equivalent to approximately 123 BOEPD.
  • The acquisition represents an approximately 9% increase to Brookside's 2Q2026 average Group Net Production of 1,404 BOEPD on a pro forma basis.
  • No new Brookside securities were issued in connection with the transaction, with US$61,000 of the consideration attributed to Brookside's existing shareholding in Stonehorse Energy.

Acquisition Completed Without New Equity Issuance

Brookside Energy Limited (ASX:BRK; OTC Pink:RDFEF) has announced the successful completion of its acquisition of the US oil and gas interests of Lone Star Exploration & Production, Inc. According to the announcement dated 2 September 2026, the acquired portfolio generated approximately 11,099 BOE during the quarter ended 30 June 2026, equivalent to approximately 123 BOEPD.

The agreed purchase price for the acquired interests was US$1.114 million. The consideration included US$61,000 attributed to Brookside's existing holding of 7.5 million shares in Stonehorse Energy Limited, with the balance settled in cash. The company confirmed that no new Brookside securities were issued in connection with the acquisition.

Production and Portfolio Impact

Based on Brookside's average Group Net Production of 1,404 BOEPD during the second quarter of 2026, the acquired production represents an approximately 9% increase to the company's production base on a pro forma basis. The company described the acquisition as adding established, low-decline production, Cash Flow and reserves to its existing portfolio.

At the US$1.114 million purchase price, the transaction represents approximately US$9,100 per flowing BOEPD, based on the portfolio's average production during the second quarter of 2026. Lone Star is the wholly owned US Subsidiary of Stonehorse Energy Limited.

Asset Composition and Existing Familiarity

The acquisition includes additional working interests in a number of producing wells and properties that the company said are already familiar to Brookside, including interests in wells operated by Brookside. The portfolio includes working interests in wells operated by Brookside's wholly owned subsidiary, Black Mesa Energy, LLC, together with a number of non-operated producing interests.

The transaction adds Proved Developed Producing (PDP) reserves to Brookside's asset base, increasing the company's ownership in a number of producing Assets that the Brookside team already understands, according to the announcement.

Company Background

Brookside is a US-focused oil and gas producer operating in the Anadarko Basin, one of North America's most productive hydrocarbon regions. The company has built a concentrated position in the SWISH Play within the SCOOP area of the Anadarko Basin, Oklahoma, and describes its strategy as centred on growing production, building scale and returning capital, while executing disciplined development and maintaining its balance sheet.

Conclusion

Brookside Energy has completed a bolt-on acquisition of Lone Star's US oil and gas interests, adding approximately 123 BOEPD of established, low-decline production and associated reserves to its Anadarko Basin portfolio without issuing new equity. The roughly 9% pro forma increase to the company's production base was achieved at a cash-and-scrip-equivalent cost of approximately US$9,100 per flowing BOEPD, with the transaction structured around assets and working interests already familiar to the Brookside team, including interests in wells it already operates through Black Mesa Energy.