Brookside Energy Limited · ASX:BRK
Brookside Energy — Investor Presentation (September 2017)
17 slides from Brookside Energy's investor presentation, Aug 31, 2017
Slide 1: Brookside Energy Limited – September 2017
Brookside Energy Limited For personal use only ACN 108 787 720 https://www.linkedin.com/in/david-prentice-a3324b22/ @BrooksideEnergy September 2017 “Building an Investment Grade business where the value is derived from high quality proved oil and gas reserves” Brookside Energy Non-Operated Working I
Slide 2: Forward-Looking Statements & Other Disclaimers
Forward-Looking Statements & Other Disclaimers For personal use only 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 (“Brooksid
Slide 3: Corporate Structure
Corporate Structure For personal use only Board of Directors ASX:BRK Michael Fry (Chairman) Share Price Range A$0.007 – A$0.018 David Prentice (Managing Director) Market Capitalization ~A$10.0m Loren Jones (Non. Exec. & Co. Sec.) FPO’s 790,000,000 ASX:BRKO1. 435,000,000 Director Options2. 25,000,000
Slide 4: Anadarko Basin Specialists
Anadarko Basin Specialists For personal use only “BRK (ASX:BRK) acquiring acreage at wholesale rates in the core of these world class resource plays; Tier One operators developing the acreage (development funded via the Drilling Joint Venture with Merchant Funds Management); to ultimately have the S
Slide 5: STACK and SCOOP Rates of Return
STACK and SCOOP Rates of Return For personal use only 5
Slide 6: Short Term Objectives
Short Term Objectives For personal use only Advance towards the Company’s initial target of 10 ü million barrels of oil equivalent in Proved Reserves Deploy 100% of the capital available via the US$3.5 million ü Drilling Joint Venture with Merchant Funds Management Unlock uplift in acreage valuation
Slide 7: Capitalizing on the Leasing Window
Capitalizing on the Leasing Window For personal use only Initial Well BRK “leases” SECTION S IO 11 1 acreage in a Unit/Section Majority Working Interest Leases (Operator) Other Working Interest Leases BRK Leases 7
Slide 8: Undeveloped Acreage Valuations Moving Higher
Undeveloped Acreage Valuations Moving Higher For personal use only $16 million Lease Sale for 880 Acres in Blaine County OK Energy - August 8, 2017 8
Slide 9: STACK-A
STACK-A Drilling Joint Venture For personal use only ü US$3.5 million Drilling Joint Venture with Merchant Funds Management provides equity holders with maximum exposure to upside from reserve growth and unlevered future cash flow in full field development ü Joint Venture finances 100% of Brookside’
Slide 10: Leveraging the Joint Venture Facility
Leveraging the Drilling Joint Venture For personal use only Drilling Joint Venture funds 100% of the cost of this initial well Cross Sec�on Showing Mul�-Zone STACK Full Field Development BRK “leases” acreage in a Unit/Section BRK “books” 100% of the reserves attributable to the Horizontal Wellbore P
Slide 11: Single Well Economics
Single Well Economics For personal use only 11
Slide 12: "1,000 acre" Proved Reserve Case
“1,000 acre” Proved Reserve Case1. For personal use only Assumptions: 24Mboe ü 27 Development Units ü 6.5 wells per Development Unit 18Mboe ü 175 gross wells ü Average 3.8% Working Interest 12Mboe ü 6.7 net wells @ 1,000,000 Boe’s per well ü ~6,700,000 Boe’s in Proved Reserves1. 6Mboe 1. This “Prove
Slide 13: Capturing Core Anadarko Acres
Capturing Core Anadarko Acres For personal use only ü Brookside has secured ~9001. acres (non-operated working interest leasehold) in the up dip liquids rich core areas of the STACK and SCOOP Plays ü Expect to capture additional core acreage using our experience, expertise and data gathered to delin
Slide 14: Initial Production Rates Exceed Pre-drill Expectations
Initial Production Rates Exceed Pre-drill Expectations For personal use only ü Nine wells have now spud across the Company’s Anadarko Basin play holdings ü First five wells have delivered an average 24-hour initial production rate (IP24) of ~1,700 Boe/day ü Two wells achieved IP24’s above 2,000 Boe/
Slide 15: Summary
Summary For personal use only ü Brookside Energy (together with its partner and manager of US operations Black Mesa Production, LLC) bring together a team of executives and Board members with extensive industry experience and a strong track record for creating significant value from energy start-ups
Slide 16: For personal use only
For personal use only 16
Slide 17: Appendix – Glossary
Appendix For personal use only GLOSSARY BOE Barrels of Oil Equivalent 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 Type Curve Representativ
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