Slide 1: Orion Project
Orion Project June 2020 An Australian public company with a real estate development approach to building value by acquiring and developing oil and gas assets in Oklahoma
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of Brookside Energy Limited (“Brookside Energy” or “the Company”). These ri
Slide 3: Oil prices will continue to surprise to the upside
“These low prices…posed very attractive buying opportunities for us. ..find the best investment opportunities when the price is significantly different than the incentive price, as is the case with oil today.” Alissa Corcoran, Kopernik Global Investors. “Oil prices will continue to surprise to the u
Slide 4: Capital Structure and Team
Capital Structure and Team Capital Structure The Board and Executives of Brookside and its partner and Market Capitalization ~A$7.0m manager of US operations Black Mesa Energy have decades ASX: BRK (FPO’s) 1,001,721,875 of industry experience and a proven track record for ASX: BRKOA1. 295,140,625 ge
Slide 5: Oklahoma's Anadarko Basin
Oklahoma’s Anadarko Basin • Proven Oil & Gas Plays in a Anadarko Basin world-class basin (SCOOP/STACK Plays) (SCOOP/STACK Plays) Already a major oil and gas producer and host to Oklahoma’s most productive oil and gas plays • Highly Prospective World-class source rocks Multiple or stacked productive
Slide 6: Business Model
Business Model Low-risk, High-return and Scalable Acquire Upgrade Re-value Monetize Re-invest Identify an opportunity, Consolidate acreage to Secondary market Sell upgraded and Use sale proceeds to start with the quality of the build a core high-grade transactions establish revalued acreage position
Slide 7: Orion Project Joint Venture: Responding to the Macro Opportunity
Orion Project Joint Venture Responding to the Macro Opportunity US Crude - Liquids Production Growth Dry Gas Production Year on Year Growth “As Post-Crisis Demand Recovers “Ripple effects of 2020 oil crash still and Supply Falls, Oil Market Set drive massive imbalance in U.S. for Strong Rebound” gas
Slide 8: Orion Project Joint Venture Structure and Key Metrics
Orion Project Joint Venture Structure and Key Metrics • Joint Venture with Stonehorse Energy Limited (ASX:SHE) (50/50) with an initial investment of US$500,000 • Acquire producing properties and associated “Held by Production” acreage Orion Project within our existing area of focus (SWISH AOI) • Nat
Slide 9: Orion Project Joint Venture Objectives
Orion Project Joint Venture Objectives • Acquire a portfolio of operated, long-life producing wellbores with upside that can be unlocked through low-cost, low-risk workovers • Build this portfolio at a low point in the commodity price cycle and then add value through operational execution • Grow thi
Slide 10: Further Upside as Prices Recover
Orion Project Further Upside as Prices Recover • Pricing upside will add WTI Prices 2015-2021 significant additional value, with the April WTI April 2019 Forward Strip 2019 Forward Strip WTI June 2020 Forward Strip pricing (as an example) WTI Spot adding ~30% to the PV10 value of the Post-Workover f
Slide 11: Data, Discipline and Expertise
Orion Project Data, Discipline and Expertise • Initial focus area within the SWISH Orion Project - Initial Focus Area AOI (southern SCOOP Play) • Covers several historic and currently producing oil and gas fields that have been exploited using vertical wellbores • Black Mesa Energy has acquired, ana
Slide 12: Scale of the Opportunity
Orion Project Scale of the Opportunity • Opportunity extends US Total Wells by Production Rate (BOE/day) over 12 townships or ~1,100 km2 and can be easily expanded or scaled-up to include other basins in Oklahoma outside of the Anadarko Basin • Focus on assets with access (via existing pipelines) to
Slide 13: Operated DSU's in the Core of Southern SCOOP
Optionality in our Existing Acreage Position Operated DSU’s in the Core of Southern SCOOP • Orion Project Joint Venture acquisitions will build on the optionality in our existing SWISH AOI by potentially adding “Held by Production” acres within our three DSU’s • Maintain our focus on the successful
Slide 14: Successful Execution: Unlocking the Upside
Successful Execution Unlocking the Upside Location, Location, Low-risk High-return, Proof of Concept Platform for Growth Location Scalable Real Estate development STACK Play pilot study, Proven World-class plays approach underpinned by acreage acquired proved SWISH AOI Acreage and (STACK and SCOOP)
Slide 15: Investor Presentation
Investor Presentation March 2020 An Australian public company with a real estate development approach to building value by acquiring and developing oil and gas assets in Oklahoma linkedin.com/in/brookside-energy brookside-energy.com.au @BrooksideEnergy 15
Slide 16: Appendix
Appendix 1. Anadarko Basin Acronyms 2. Corporate Structure 3. Maiden Reserves 4. Notes 5. Glossary 16
Slide 17: 1. Anadarko Basin Acronyms
1. Anadarko Basin Acronyms • SCOOP Play - South Central Oklahoma Oil Province • STACK Play - Sooner Trend, Anadarko Basin, Canadian & Kingfisher Counties These two acronyms represent Oklahoma’s most productive oil and natural gas plays. Unique formations with multiple zones allow producers to bring
Slide 18: 2. Corporate Structure
2. Corporate Structure ASX:BRK Brookside Energy Limited 28.7% 100% 100% Black Mesa Energy, LLC BRK Oklahoma Holdings, LLC Orion Acquisitions, LLC 100% Anadarko Leasing, LLC 18
Slide 19: 3. Maiden Reserve Report
3. Maiden Reserve Report Background Brookside's partner and manager of US operations, Black Mesa Production, LLC (Black Mesa) has prepared an estimate of the oil and gas reserves and future net revenues for certain petroleum property interests owned by Brookside. These interests consist of non-opera
Slide 20: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 20
Slide 21: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 21
Slide 22: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 22
Slide 23: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 23
Slide 24: 3. Maiden Reserve Report (cont.)
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Slide 25: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 25
Slide 26: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 26
Slide 27: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 27
Slide 28: 3. Maiden Reserve Report (cont.)
3. Maiden Reserve Report (cont.) 28
Slide 29: 4. Notes
4. Notes Anadarko Leasing Facility. Anadarko Leasing, LLC is a wholly owned subsidiary of Brookside, incorporated solely for the purpose of acquiring Working Interest leasehold acreage in the Anadarko Basin Plays in Oklahoma on behalf of Brookside and pursuant to the Drilling Program Agreement betwe
Slide 30: 5. Glossary
5. Glossary APO WI After pay out working interest ART Alter Federol income Tox AOI Area of interest BI An oilfield barrel, a volume of 42 US gallons BFT Before Federal income Tax BOE Borrels of Oll Equivalent COPAS Council of Petroleum Accountants Societies Development Unit | Development Unit or spa