Key Highlights

  • Brookside has secured non-operated working interests of roughly 1% to 12% in five proposed horizontal wells across the Southern SCOOP, Northern SCOOP and Cherokee plays in Oklahoma.
  • The company expects its total investment across the five wells to be approximately US$3.5 million, funded from existing working capital and operating cash flow.
  • Two extended-length Woodford and Sycamore wells are proposed in a 1,920-acre Southern SCOOP unit, where Brookside's interests are estimated at approximately 7% to 12% and operations are expected in Q2 2027.
  • Drilling is expected to begin in Q4 2026 on two Cherokee Formation horizontals, in each of which Brookside holds an interest of approximately 1%.

Brookside Energy Limited (ASX:BRK) has secured non-operated interests in five proposed horizontal wells across three areas of its Oklahoma portfolio: the Southern SCOOP, the Northern SCOOP and the Cherokee Play. The wells target the Cherokee, Woodford and Sycamore formations, and Brookside's working interests are currently estimated at approximately 1% to 12%. Based on those working-interest estimates and indicative development costs, the company expects its total investment across the five wells to be approximately US$3.5 million, to be funded from existing working capital and operating cash flow.

Five Non-Operated Wells and a US$3.5 Million Budget

Brookside is a US-focused oil and gas producer operating in the Anadarko Basin. Its operated production base is in the SWISH Play, where it runs eleven wells. The five new wells are non-operated, meaning another party operates them and Brookside participates through its working interest.

A working interest is a percentage of ownership in a lease that gives the owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners must pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit. Brookside's share of the costs in each well therefore follows its percentage, which ranges from approximately 1% to 12% across the program.

Spread evenly, the budget of approximately US$3.5 million would equal about US$700,000 per well, although the working interests differ from well to well. Brookside linked the wells to its recently completed acquisition of Lone Star's US oil and gas interests. Together, the company said, the two give it further potential to grow production and cash flow outside the operated SWISH program.

Southern SCOOP: Two Proposed Wells in a 1,920-Acre Unit

In the Southern SCOOP, Brookside holds working interests in a 1,920-acre drilling spacing unit, or DSU. The company defines a DSU as the geographical area in which a well is drilled and produced from the formations listed in a spacing order, with the unit sharing production among all interest owners. Brookside's position was established through its participation in a Woodford horizontal well drilled and completed in 2018.

That 2018 well produced approximately 300,000 barrels of oil equivalent (BOE) gross in its first 12 months and approximately 1.0 million BOE gross cumulatively to July 2026, which means the first year accounted for about 30% of the total. Gross volumes cover the whole well rather than Brookside's share. The figures come from Enverus Drillinginfo production data, with natural gas converted at 6 thousand cubic feet to 1 BOE and natural gas liquids excluded.

Regulatory applications have recently been filed for two proposed extended-length horizontal wells in the same unit, targeting the Woodford and Sycamore formations. Brookside's working interests in the proposed wells are currently estimated at approximately 7% to 12%. Operations are expected to begin in Q2 2027, and the wells remain subject to the regulatory process, final title and formal well proposals.

Northern SCOOP and Cherokee Positions

In the Northern SCOOP, Brookside has secured an approximately 1% working interest in a proposed three-mile Woodford horizontal well. The company said it is familiar with the reservoir characteristics, geology and recent development activity in the area, and it views the proposed well as a way to add production and cash flow. No start date was given for this well.

In the Cherokee Play, Brookside has acquired working interests of approximately 1% in two proposed Cherokee Formation horizontal wells. One is planned as a three-mile horizontal and the other as a two-mile horizontal. Drilling on the two wells is expected to begin in Q4 2026, which makes the Cherokee wells the earliest of the five on the stated schedule.

Where the Non-Operated Program Stands

Of the five wells, two sit in the Southern SCOOP with interests of approximately 7% to 12%, one sits in the Northern SCOOP at approximately 1%, and two sit in the Cherokee at approximately 1% each, for an expected total investment of approximately US$3.5 million. Managing Director and CEO David Prentice said the company's operated activity remains the foundation of the business while it builds other sources of production and cash flow across the Anadarko Basin. He said existing acreage positions and new non-operated investments allow Brookside to take part in developments with relatively small capital commitments, without taking resources away from the operated program. Prentice added that successful development of the wells would add to the production base and help the company build scale.