Slide 1: SWISH > Step Change Growth – Investor Presentation May 2018
SWISH > Step Change Growth For personal use only Inflection Point :- a decisive moment in the course of some entity, event or situation that marks the start of significant change. Investor Presentation May 2018 brookside-energy.com.au
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: Corporate & Capital Structure
Corporate & Capital Structure Brookside Energy Limited ASX:BRK For personal use only Michael Fry (Chairman) Share Price Range A$0.008 – A$0.021 David Prentice (Managing Director) Market Capitalization ~A$14m Loren King (NED & Co. Sec.) FPO’s 987,500,000 Black Mesa Production, LLC (Partner & Manager
Slide 4: Investment Proposition
Investment Proposition !! Anadarko Basin Focus (STACK & For personal use only SCOOP Plays) Six-month Growth Profile !! Leasing Undeveloped Acreage (ground level direct investment) 2,000-acres > 10,000-acres “Buy-Low” !! Initial Development Drilling Funded (off- balance sheet, Drilling Joint Venture
Slide 5: Acreage Revaluation Business Model
Acreage Revaluation Business Model 1 For personal use only 1,280-acre Drilling Unit Brookside “leases” all or a portion of the undeveloped acreage in a Drilling Unit 2 Drilling Joint Venture or Drill Co. funds 100% of the cost of this initial or “parent” well 3 Brookside “books” 100% of the reserves
Slide 6: Case Study - Strategic Divestment Validates Business Model
“Case Study” - Strategic Divestment Validates Business Model !! Strategic sale in the first “full field” development unit in the STACK Play For personal use only !! Acreage acquired (undeveloped non-operated leasehold) in late 2016 at an average US$2,500 per acre !! Divestment achieves US$28,600 per
Slide 7: Black Mesa Production – Deal Structure
Black Mesa Production – Deal Structure !! Traditional “Oil Man’s” deal, Black Mesa Production, LLC For personal use only commonly used “Peer to Peer” style Reservoir Engineering of investment provides alignment Exxon, Crystal Oil, Medallion Production and with Brookside shareholders Bill Warnock 43y
Slide 8: Anadarko Basin – World Class Plays with stacked Reservoirs
Anadarko Basin – World Class Plays with “stacked” Reservoirs Basin Stratigraphy For personal use only brookside-energy.com.au 8
Slide 9: STACK & SCOOP Plays – Single Well Breakeven Prices
STACK & SCOOP Plays – Single Well Breakeven Prices For personal use only Note: Assumes 10% IRR, based on flat oil price of US$50/Bbl and gas price of US$3/Mcf Source: NYSE:NFX Investor Presentation, analysts reports brookside-energy.com.au 9
Slide 10: SWISH – Step Change Growth Opportunity
SWISH – Step Change Growth Opportunity !! Black Mesa has identified an exciting (low risk) opportunity in southern SCOOP (“SWISH”) For personal use only !! Target reservoirs (Woodforde Shale and Sycamore Limestone) are already being successfully exploited by other operators (Newfield Exploration & C
Slide 11: Identifying Sweet Spots Along The Basin Margin
Identifying “Sweet Spots” Along The Basin Margin For personal use only brookside-energy.com.au 11
Slide 12: Woodford Shale & Sycamore Lime – Type Section
Woodford Shale & Sycamore Lime – Type Section !! Woodford Shale Target Thickness ranges from 340’ to 500’ For personal use only •! •! Good Resistivity & Porosity throughout the reservoir •! Organic rich, oil and gas prone source rock for entire Anadarko Basin !! Sycamore Target •! Thickness ranges f
Slide 13: Land and Leasing Activity
Land and Leasing Activity Large land positions north of SWISH are already leased and locked up by large independents or private equity backed companies For personal use only Oklahoma Oil & Gas Leases – Last 60 days !"##$%&'() brookside-energy.com.au 13
Slide 14: Initial SWISH Operated Sycamore Well
Initial SWISH “Operated” Sycamore Well !! Low risk infill drilling opportunity in SWISH For personal use only !! 430 acres of un-drained reservoir, with a significant amount of recoverable oil and gas defined by historical vertical production !! Potentially six locations in this one unit, two Sycamo
Slide 15: Funded and Positioned for Step Change Growth
Funded and Positioned for Step Change Growth !! Core World-Class Anadarko Basin holding secured with visibility to expansion up to For personal use only 10,000-acres !! 11 wells currently producing with a further 16 wells at various stages of development !! ~US$2,000,000 in forecast cash-flow to be
Slide 16: For personal use only
For personal use only ASX:BRK Suite 9, 330 Churchill Avenue Subiaco WA 6008 p: +61 8 6489 1600 w: brookside-energy.com.au 16
Slide 17: Appendix – Brookside Energy Ltd. Corporate Structure
Appendix – Brookside Energy Ltd. Corporate Structure For personal use only ASX:BRK Brookside Energy Limited 100% 15% 100% BRK Oklahoma Holdings, LLC Black Mesa Production, LLC Anadarko Leasing, LLC Leasehold and Producing Partner & Manager of US Leasehold and Producing Properties Operations Properti
Slide 18: Appendix – BOK E-Spectrum Advisors
Appendix – BOK E-Spectrum Advisors For personal use only brookside-energy.com.au 18
Slide 19: Appendix – Glossary & Notes
Appendix – Glossary & Notes GLOSSARY ! BOE Barrels of Oil Equivalent For personal use only Bbl Barrel of Oil Mbbl or Mboe Thousand Barrels of oil or Oil Equivalent EUR Estimated Ultimate Recovery PDP Proved Developing Producing Reserves PUD Proved Undeveloped Reserves IRR Internal Rate of Return Typ