Brookside Energy Limited · ASX:BRK
Brookside Energy — Shareholder Meeting (May 2019)
24 slides from Brookside Energy's shareholder meeting presentation, May 17, 2019
Slide 1: Growing Operated Position in the World-Class Anadarko Basin
Growing Operated Position in the World-Class For personal use only Anadarko Basin Annual General Meeting Presentation May 2019 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 ASX:BRK 12 Month Share Price Performance Share Price Range A$0.01 – A$0.023 For personal use only Market Capitalization ~A$12.0m FPO’s 999,221,875 ASX:BRKOA1. 295,140,625 Cash Available2. ~A$2.4m Asset Level Funding Facility Drilling Joint Venture US$3.5m (US$3.2m drawn
Slide 4: Anadarko Basin Acronyms Explained
Anadarko Basin Acronyms Explained ✓ SCOOP For personal use only South Central Oklahoma Oil Province ✓ STACK 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 p
Slide 5: Investment Proposition
Investment Proposition ✓ World-Class Anadarko Basin Focus (STACK & SCOOP Plays) For personal use only ✓ Leasing Undeveloped Acreage Six-month Growth Profile (ground level direct investment) “Buy-Low” 2,400-acres > 6,000-acres ✓ ~2,500-acre holding in the core of the STACK and SCOOP Plays with opport
Slide 6: Acreage Revaluation Business Model
Acreage Revaluation Business Model 1 Buy Low For personal use only 1,280-acre Drilling Unit Brookside “leases” all or a portion of the undeveloped acreage in a Drilling Unit Minimizes 2 dilution Acreage Drilling Joint Venture or Drill Co. funds 100% of the cost 3 Revaluation “Sell High” of this init
Slide 7: Strategic Acreage Sales Validate Business Model
Strategic Acreage Sales Validate Business Model ✓ Company closed a number of strategic For personal use only acreage sales from it’s non-operated STACK Play holdings during the last 12-months ✓ Highlights success of business model, achieving multiples up to 10-times average undeveloped acreage acqui
Slide 8: Non-operated STACK Play Wells – Strong Productivity
Non-operated STACK Play Wells – Strong Productivity Well Name Operator WI Status IP24 Landreth BIA #1-14H Marathon Oil, Co. 2.6% Producing 2,649 For personal use only Kevin FIU #1-20-17XH Continental Resources, Inc. 2.1% Producing 5,328 Nelson Com #1H-0607X Marathon Oil, Co. 0.4% Producing 4,023 Bul
Slide 9: Maiden Oil & Gas Reserves – Further Validation of Business Model
Maiden Oil & Gas Reserves – Further Validation of Business Model For personal use only ✓ Maiden reserves of 3.45MMboe attributable to ~20% of the Company’s acreage position ✓ Combined NPV10 of US$12.5 million with forecast future net revenues of US$37.75million ✓ The NPV10 per acre valuation of US$3
Slide 10: SWISH Platform to Provide Transformational Reserve Growth
SWISH Platform to Provide Transformational Reserve Growth ✓ SWISH AOI leasing campaign has delivered a potential ~6,000-acre position1 in the liquids-gas condensate core For personal use only of the Woodford-Sycamore Trend of the SCOOP Play ✓ Focus on seven high-grade development units with opportun
Slide 11: 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 13
Slide 12: Identifying Sweet Spots Along The Basin Margin
Identifying “Sweet Spots” Along The Basin Margin For personal use only brookside-energy.com.au 14
Slide 13: 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 from 32
Slide 14: 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 Heat Map Activity Last 90 days Brookside brookside-energy.com.au 16
Slide 15: Drilling and Completion Activity
Drilling and Completion Activity ✓ Tier-one independent and private equity funded E&P For personal use only companies successfully developing both the Sycamore and Woodford in off-set acreage. ✓ Significant increase in drilling and completion activity within the SWISH AOI ✓ Providing additional supp
Slide 16: Initial SWISH Operated Sycamore Well
Initial SWISH “Operated” Sycamore Well ✓ Low risk infill drilling opportunity in SWISH For personal use only ✓ Large area of un-drained or under- exploited reservoir in this one development unit ✓ Potential for seven wells in this one development unit, two Sycamore and five Woodford Shale ✓ First we
Slide 17: Jewell Unit – Development Potential
Jewell Unit – Development Potential ✓ Jewell 13-12 SH1 Well will establish six proved undeveloped For personal use only locations within this single SWISH Unit ✓ Catalyst for a material increase in Brookside’s Proved Undeveloped Reserves and association PV10 value ✓ Key to unlocking SWISH upside as
Slide 18: Well positioned for Step Change Growth
Well positioned for Step Change Growth ✓ Core World-Class Anadarko Basin holding secured with visibility to For personal use only expansion up to 6,000-acres ✓ 14 wells currently producing with a further 18 wells at various stages of development ✓ Experienced team (motivated and aligned with Brooksi
Slide 19: For personal use only
ASX:BRK Suite 9, 330 Churchill Avenue Subiaco WA 6008 p: +61 8 6489 1600 For personal use only w: brookside-energy.com.au 21
Slide 20: Appendix – Brookside Energy Ltd. Corporate Structure
Appendix – Brookside Energy Ltd. Corporate Structure For personal use only ASX:BRK Brookside Energy Limited 100% 17% 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 21: Appendix – Black Mesa Production, LLC
Appendix – Black Mesa Production, LLC For personal use only brookside-energy.com.au 23
Slide 22: 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 24
Slide 23: Appendix – Notes
Appendix – Notes Notes: i. 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 For personal use only Basin Plays in Oklahoma on behalf of Brookside and pursuant
Slide 24: Appendix – Glossary
Appendix – Glossary For personal use only brookside-energy.com.au 26