Brookside Energy Reports Strong 2Q23 Activities and Cashflow — ASX:BRK| ASX Mining News & Discussion

$BRK Brookside Energy Reports Strong 2Q23 Activities and Cashflow

Brookside Energy Limited (ASX: BRK) is pleased to announce its second-quarter activities and cashflow report for the financial year 2023. The report showcases impressive achievements and financial growth for the company during the period.

Record Cash Receipts and Cash Flow

Brookside Energy recorded a remarkable A$17.5 million in cash receipts, resulting in a positive operating cash flow of A$9.3 million for 2Q23. This figure includes cash to be received from Joint Interest Billing adjustments. The company also generated a record-setting free cash flow of A$7.5 million, resulting in a rise in cash at the end of the quarter to A$23.5 million (or A$25.3 million, inclusive of cash from JIB adjustments).

Production and Reserves Milestones Reached

During the quarter, Brookside Energy achieved several significant milestones in production and reserves:

Gross operated daily production reached a record high of 2,628 BOE per day, with a net production of 1,603 BOE per day (72% liquids). This figure represents ... a 69% increase compared to 2Q22.

The company's 4 operated SWISH AOI wells delivered a gross production of 239,167 BOE, with cumulative production reaching 1,183,300 BOE by the end of the quarter.
All SWISH wells ended the quarter at full production, with the Flames Well recovering to pre shut-in production levels after a temporary shut-in in 1Q23 to avoid interference from nearby hydraulic stimulation operations.

Brookside Energy announced the maiden reserve certification of 11.9 million BOE Proved and Probable Reserves (2P) net to Brookside's Working Interest and net of royalties (Net Reserves) for SWISH AOI. The reserves have strong economics, with a pre-tax NPV10 of US$170.5 million (A$254.5 million), total net sales of US$629.0 million (A$939.0 million), and pre-tax future net income (net of CAPEX) of US$336.2 million (A$501.8 million).

Share Buy-Back and Well Performance

Brookside Energy commenced a Share Buy-Back program, aiming to repurchase up to 350,451,918 shares. To date, the company has purchased 129,783,417 shares (37% of the total allowable without shareholder approval) at a cost of A$1.77 million.

In terms of well performance, the Wolf Pack Well achieved the company's highest Initial Production rate (IP24) to date, reaching a peak rate of 2,034 BOE per day (88% liquids). The well sustained strong performance with an IP30 rate of 1,869 BOE per day (88% liquids). The Juanita Well also delivered impressive results, recording a peak production test rate of 329 Barrels (BOEPD) (75% Oil) and maintaining an average rate of 174 BOEPD (76% oil) over a 27-day period.

About Brookside Energy Limited

Brookside Energy Limited is an Australian public company listed on the Australian (ASX: BRK) and USA (OTC Pink: RDFEF) stock exchanges. The company was founded in 2015, focusing on the mid-continent region of the US. Through its subsidiary, Black Mesa Energy, LLC, Brookside operates in a disciplined manner, acquiring and developing oil and gas assets while ensuring sustainable growth and value creation in collaboration with local communities.

The company's strong performance in 2Q23 reflects its commitment to responsible and efficient energy asset development, providing value to shareholders and stakeholders alike.

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