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Australia : Brookside STACK Drilling to Commence.

Brookside Energy Limited (Brookside or the Company) is pleased to provide an uodate on progress, as it's wholly owned subsidiary BRK Oklahoma Holdings, LLC (BRK Oklahoma) continues to build a position in the core of the STACK Meramec Play (STACK Play) in Oklahoma.

BRK Oklahoma has elected to participate in its first horizontal well within its core STACK Play non-operated working interest leasehold acreage in Blaine County, Oklahoma. The Strack 1-2-11XH well, to be operated by Marathon Oil company (Marathon Oil) is permitted as an extended reach horizontal well with a total measured depth of 20,448 feet targeting the Meramec formation. BRK Oklahoma holds 12.5 acres in the relevant spacing unit. BRK Oklahoma's share of estimated drilling and completion costs for this well are to be funded via the previously announced Drilling Joint Venture.

Acurrent industry type curve for a single extended reach horizontal well delivers an EUR of 1,700 Mboe (58% oil) with 380 Mboe produced in the first 12-months. This well generates a pre-tax rate of return in excess of 70% at current pricing (based on an estimated completed well cost of US$9 million).

The Strack 1-2-11XH well is being drilled in an area where permitting and pooling by operators is at unprecedented levels with in excess of 180 pooling applications and orders (a pre-curser to the spudding of an individual well) active across Brookside's area of interest in the core of the play.

Numerous offsetting extended reach horizontal wells have achieved 30-day IP's of 2,000 Boe/day or better. Experienced and well funded tier one operators, including Continental Resources, Inc. and Marathon Oil are already testing increased drilling density with eleven (11) successful pilots conducted in and around Brookside's core focus area. Of particular note is Devon Energy Corp's recently announced Amo spacing pilot which tested five wells per section across a single interval in the upper Meramec, delivering 30-day production rates averaging 1,400 Boe/day per well. The ^mo wells were drilled with normal length 5,000-foot laterals.

This well (Strack 1-2-11XH) is the first of six (6) soon to be drilled 1,280 acre spacing units located within the non-operated working interest leasehold position that BRK Oklahoma has secured to date. The Company's leasing campaign is on going. $ the location of the acreage and the contractual terms of the leases are commercially sensitive at present, the Company will make a more fulsome disclosure when the campaign is finalised and the final acreage acquisition opportunities have been identified and secured.

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Publication:Mena Report
Date:Aug 19, 2016
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