Key Highlights

  • Brookside Energy (ASX:BRK) announced five proposed non-operated horizontal wells across Oklahoma's Southern SCOOP, Northern SCOOP and Cherokee plays on 21 October 2026.
  • The company expects a total investment of approximately USD 3.5mn, funded through existing working capital and operating cash flow.
  • Working interests range from approximately 1% to 12%, providing exposure to multiple development areas within the Anadarko Basin.
  • Drilling at two Cherokee wells is expected in 4QFY26, while operations at two Southern SCOOP wells are targeted for 2QCY27.

Brookside Energy Limited (ASX:BRK) is an Australian-listed oil and gas exploration and production company with operations concentrated in Oklahoma's Anadarko Basin in the United States. Its portfolio includes operated producing wells and non-operated interests across established unconventional oil and gas formations. On 21 October 2026, Brookside Energy (ASX:BRK) announced the addition of five proposed horizontal wells to its non-operated development programme, representing an expansion of its potential production base beyond existing operated assets.

How Is Brookside Energy (ASX:BRK) Expanding Its Oklahoma Operations?

Brookside Energy (ASX:BRK) has secured non-operated working interests in five proposed horizontal wells across three development areas in Oklahoma.

The programme targets the Cherokee, Woodford and Sycamore formations, which form part of the broader Anadarko Basin petroleum system.

The company's estimated working interests range between approximately 1% and 12%, depending on the individual well and development area.

Unlike its operated SWISH development programme, these new wells will be managed by other operators, with Brookside Energy (ASX:BRK) participating through its respective ownership interests.

The arrangement allows the company to participate in additional development opportunities while limiting its direct operational responsibilities and proportional capital commitments.

However, the actual production contribution will depend on successful drilling, completion and subsequent well performance.

What Are the Details of the Five-Well Development Programme?

The programme comprises two proposed wells in Southern SCOOP, one in Northern SCOOP and two in the Cherokee play.

Southern SCOOP Development

Brookside Energy (ASX:BRK) holds interests in a 1,920-acre drilling spacing unit where two extended-length horizontal wells are proposed.

These wells will target the Woodford and Sycamore formations, with working interests estimated between approximately 7% and 12%.

Regulatory applications have been submitted, and operations are expected to commence in the second calendar quarter of 2027, subject to approvals and final development arrangements.

Northern SCOOP Development

The company has secured an approximately 1% working interest in a proposed three-mile horizontal well targeting the Woodford formation.

A confirmed drilling commencement date has not been announced.

Cherokee Development

Brookside Energy (ASX:BRK) has also secured approximately 1% working interests in two proposed Cherokee Formation wells.

One well is planned with a three-mile horizontal section, while the second is expected to have a two-mile horizontal section.

Drilling is scheduled to commence during the fourth calendar quarter of 2026, subject to operational readiness.

What Does Historical Production Indicate About Southern SCOOP?

The Southern SCOOP programme is located within an established drilling spacing unit containing a previously developed Woodford horizontal well.

The historical well commenced production following its development in 2018 and generated approximately 300,000 barrels of oil equivalent (BOE) during its first 12 months.

Cumulative gross production reached approximately 1.0mn BOE by July 2026.

These figures provide historical operating information about the formation and the surrounding development area.

However, the production figures represent gross output from the existing well rather than Brookside Energy's (ASX:BRK) net entitlement.

They also do not establish expected recovery volumes, production rates or reserves for the proposed horizontal wells.

The company will require further drilling and production results before the potential contribution from the new development programme can be quantified.

How Will Brookside Energy (ASX:BRK) Fund the Programme?

Brookside Energy (ASX:BRK) estimates its total capital commitment across the five proposed wells at approximately USD 3.5mn.

The company intends to finance the programme through existing working capital and operating cash flow.

The announcement does not identify a new equity raising as part of the planned funding arrangements.

This approach reflects the company's strategy of participating in selected non-operated opportunities alongside its existing operated production activities.

Because Brookside Energy (ASX:BRK) holds minority working interests in the proposed wells, its share of capital expenditure is proportionate to its participation.

Nevertheless, development expenditure remains subject to final well costs, operational schedules and any changes in working-interest calculations.

How Does the Lone Star Acquisition Support Production Diversification?

The new drilling programme follows Brookside Energy's (ASX:BRK) completion of an acquisition of producing oil and gas interests in Oklahoma in September 2026.

The acquired Lone Star portfolio contributed approximately 11,099 BOE during the June 2026 quarter, equivalent to approximately 123 BOE per day.

The acquisition consideration totalled approximately USD 1.114mn and included cash and the transfer of equity interests.

The producing assets added an existing production component to Brookside Energy's (ASX:BRK) broader Oklahoma portfolio.

In comparison, the five newly announced non-operated wells represent proposed development opportunities that have not yet commenced commercial production.

Together, these activities broaden the company's exposure to producing assets and future drilling projects across the Anadarko Basin.

What Are the Main Development Risks?

Brookside Energy (ASX:BRK) faces operational and financial uncertainties associated with its proposed non-operated wells.

The company does not directly control drilling schedules, contractor selection or daily operating decisions at these projects.

Consequently, changes in operating plans or regulatory requirements could affect the timing of development activities.

Final title verification, well proposals and regulatory approvals are also required before certain drilling operations can proceed.

Commodity prices remain another consideration because future revenue from oil and natural gas production depends on realised market prices and sales volumes.

Additionally, higher drilling and completion costs could increase the company's capital requirements beyond current estimates.

The proposed wells have not been assigned confirmed production forecasts, making their eventual financial contribution uncertain.

What Are the Next Production Milestones?

Brookside Energy (ASX:BRK) is targeting drilling commencement for the two Cherokee wells during the fourth calendar quarter of 2026.

Progress at these wells will provide an initial indication of execution under the expanded non-operated programme.

The proposed Southern SCOOP wells represent another scheduled development stage, with operations anticipated during the second calendar quarter of 2027.

Further information about the Northern SCOOP well's development timetable will also be relevant.

Future quarterly production reports, completion announcements and operating cash flow disclosures will help establish whether additional wells are contributing measurable volumes to the company's production base.

The principal development milestone will be the transition of proposed wells into completed, producing assets rather than the announcement of drilling participation alone.