Brookside Energy Limited · ASX:BRK
Brookside Energy — Investor Presentation (February 2020)
33 slides from Brookside Energy's investor presentation, Feb 13, 2020
Slide 1: Real Estate Development Approach to Oil & Gas in Oklahoma
Real Estate Development Approach to Oil & Gas in Oklahoma For personal use only Investor Presentation February 2020 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 For personal use only Share Price Range A$0.007 – A$0.015 Market Capitalisation ~A$7.0m ASX: BRK (FPO’s) 999,221,875 ASX: BRKOA1. 295,140,625 Cash Available2. 3. ~A$2.7m Asset Level Funding Facility Drilling Joint Venture US$3.5m
Slide 4: Low-Risk High-Return Business Model
Low-Risk High-Return Business Model Acquire Upgrade Re-value Monetise Re-invest For personal use only Identify an opportunity, Consolidate leases to build Secondary market Sell upgraded and revalued Use sale proceeds to scale- start with the quality of the a core high-grade operated transactions est
Slide 5: Oklahoma's Anadarko Basin - Great Opportunities for Early Movers
Oklahoma’s Anadarko Basin - Great Opportunities for Early Movers ü Proven Oil & Gas Plays in a world- For personal use only class basin (STACK and SCOOP) Already a major oil and gas producer and host to Oklahoma’s most productive oil and gas plays ü Highly Prospective World-class source rocks Multip
Slide 6: Proven Plays in a World-Class Basin
Proven Plays in a World-Class Basin ü STACK Play rates of For personal use only return are competitive ASX: BRK with the very best shale STACK Play plays across North Acreage America ü Highly sought-after Sycamore-Woodford trend in southern SCOOP Play (Brookside’s SWISH AOI) has become a significant
Slide 7: A Real Estate Development Approach to Oil & Gas in Oklahoma
A Real Estate Development Approach to Oil & Gas in Oklahoma Real Estate Developer Brookside Energy For personal use only Acquire Acquire Upgrade Upgrade Re-value Re-value Monetise Monetise Re-invest Re-invest brookside-energy.com.au 7
Slide 8: Acreage Revaluation in Practice
Acreage Revaluation in Practice 1 For personal use only Buy Low 1,280-acre Drilling Unit Brookside “leases” all or a portion of the undeveloped acreage in a Drilling Spacing Unit or DSU Minimizes 2 dilution Acreage Drilling Joint Venture or Drill Co. funds 100% of the cost of 3 Revaluation “Sell Hig
Slide 9: Private Equity Model in an ASX Listed Company
Private Equity Model in an ASX Listed Company Drill Co. For personal use only Funds acquisitions, establishes reserves, buys Identifies acreage and manages acquisitions, Funds drilling and completion capital for initial well, and sells acreage supervises drilling and operations (including takes its
Slide 10: Successful STACK Play Pilot Study
Successful STACK Play Pilot Study üAcquired ~400-acres in STACK Play 30,000 For personal use only for US$1.25m üBooked maiden reserves 25,000 (3.45MMboe, US$12.5m NPV10 and forecast future net revenues of 20,000 US$37.75m) US$/Acre üSmall non-core acreage sales 15,000 generated A$2.5m re-invested in
Slide 11: Scaling-up in the SCOOP Play
Scaling-up in the SCOOP Play ü SWISH AOI (SCOOP Play southern core) For personal use only Active leasing and acquisition program underway to secure an operated position in highly sought-after Sycamore-Woodford trend Monetise 2,500-acre position established (targeting 4,000 to 6,000-acres) Focused to
Slide 12: First Operated DSU in the SWISH AOI
First Operated DSU in the SWISH AOI ü Jewell 13-12 SH1 Well will establish six For personal use only proved undeveloped locations within this single DSU ü Operations secured along with a ~90% Working Interest in this 880-acre DSU ü This first SWISH AOI DSU is more than 2x Brookside’s STACK Play Pilo
Slide 13: SWISH AOI Drilling and Completion Activity
SWISH AOI Drilling and Completion Activity For personal use only Excellent IP’s plus sustained production volumes equals higher forecast recovered volumes, strong ROR’s, short pay-out periods and ultimately higher per-acre values brookside-energy.com.au 13
Slide 14: New Generation SWISH AOI Wells Confirm Productivity
New Generation SWISH AOI Wells Confirm Productivity For personal use only Betts M1-6-31XH well has produced 260,670 barrels of oil equivalent (67% oil) in its first 12- months Ely Unit has produced 1,460,000 barrels of oil equivalent (55% liquids) in 7-months (for net revenue of US$40 million) brook
Slide 15: New Generation SWISH AOI Wells Confirm Productivity
New Generation SWISH AOI Wells Confirm Productivity Leon 1-23-14XHM well looks For personal use only set to produce 100,000 barrels of oil in its first three months of production Ringer Ranch 1-20-17XHM well has produced approximately 122,000 barrels of oil in its first three months of production Ex
Slide 16: Why Invest in Brookside Energy
Why Invest in Brookside Energy For personal use only Location, Location, Low-risk High-return Proof of Concept Platform for Growth Location Business Model Real Estate development approach STACK Play pilot study, acreage Proven World-class plays (STACK underpinned by partnership with acquired proved
Slide 17: Want to learn more about Brookside Energy Limited
Want to learn more about Brookside Energy Limited For personal use only brookside-energy.com.au @BrooksideEnergy david@brookside-energy.com.au
Slide 18: Appendix
Appendix 1. Anadarko Basin Acronyms For personal use only 2. Corporate Structure 3. Black Mesa Production, LLC 4. Maiden Reserves 5. Notes 6. Glossary brookside-energy.com.au 18
Slide 19: Anadarko Basin Acronyms
Anadarko Basin Acronyms 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 producers t
Slide 20: Brookside Energy Ltd. Corporate Structure
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 Properties Partner & Manager of US Operations Leasehold and Producing Properties brooksid
Slide 21: Black Mesa Production, LLC
Black Mesa Production, LLC For personal use only brookside-energy.com.au 21
Slide 22: Maiden Reserves
Maiden Reserves Background For personal use only 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
Slide 23: Maiden Reserves (cont.)
Maiden Reserves (cont.) ANNEXURE 1 For personal use only 1. MATERIAL ECONOMIC AND OTHER ASSUMPTIONS 1.1 General The estimates of petroleum reserves detailed in this announcement are based on the property interests which were obtained by Brookside pursuant to the terms of the Drilling Program and Acq
Slide 24: Maiden Reserves (cont.)
Maiden Reserves (cont.) 1. MATERIAL ECONOMIC AND OTHER ASSUMPTIONS (CONT.) For personal use only 1.1 General (cont.) There is a risk that the forecast information derived using these assumptions may materially differ from the actual results. Circumstances which may result in the actual results being
Slide 25: Maiden Reserves (cont.)
Maiden Reserves (cont.) 1. MATERIAL ECONOMIC AND OTHER ASSUMPTIONS (CONT.) For personal use only 1.3 Forecast production rates and petroleum reserves Petroleum reserves have been estimated based on the expected quantities of production per well over the economic life of the well, determined with ref
Slide 26: Maiden Reserves (cont.)
Maiden Reserves (cont.) 2. INFORMATION REQUIREMENTS – CHAPTER 5 OF THE ASX LISTING RULES For personal use only 2.1 LR 5.26.4 and 5.26.5 Lease Fuel and Reference Point The estimated net reserves, future net revenues and NPV10 values contained in this report are net of any lease fuel volumes and are c
Slide 27: Maiden Reserves (cont.)
Maiden Reserves (cont.) 2. INFORMATION REQUIREMENTS – CHAPTER 5 OF THE ASX LISTING RULES (CONT.) For personal use only 2.7 LR 5.31.5 Estimated Quantities (in aggregate) to be recovered: As a consequence of the continued and additional works carried out on Brookside’s leasehold assets in accordance w
Slide 28: Maiden Reserves (cont.)
Maiden Reserves (cont.) ANNEXURE 2 - Summary of Project Economics, Key Inputs and Assumptions For personal use only END GROSS OIL GROSS GAS NET OIL NET GAS NET OIL NET GAS NET NET TOTAL END ADV & DIRECT OPER TOTAL OPERATING EQUITY BFIT NET CUM. CUM. DISC. NO. OF Month - Year PRODUCTION PRODUCTION PR
Slide 29: Maiden Reserves (cont.)
Maiden Reserves (cont.) ANNEXURE 2 - Summary of Project Economics, Key Inputs and Assumptions (cont.) For personal use only GROSS Working Interest Net Revenue Interest INITIAL INTEREST 1 0.02 0.016 OIL RESERVES, MB 49,390.70 852.763 700.478 GAS RESERVES, MMF 991,309.18 20527.65 16492.882 REVENUE, M$
Slide 30: Maiden Reserves (cont.)
Maiden Reserves (cont.) Appendix 1. – As per LR 5.31.3 - BRK Leasehold Interests and Operators For personal use only INDEX OF LEASES INDEX OF LEASES INDEX OF LEASES INDEX OF LEASES INDEX OF LEASES AS OF DATE: 01/2018 AS OF DATE: 01/2018 AS OF DATE: 01/2018 AS OF DATE: 01/2018 AS OF DATE: 01/2018 STA
Slide 31: Maiden Reserves (cont.)
Maiden Reserves (cont.) Appendix 1. – As per LR 5.31.3 - BRK Leasehold Interests and Operators (cont.) For personal use only INDEX OF LEASES INDEX OF LEASES INDEX OF LEASES INDEX OF LEASES AS OF DATE: 01/2018 AS OF DATE: 01/2018 AS OF DATE: 01/2018 AS OF DATE: 01/2018 STATE LEASE ID LEASE NAME APO W
Slide 32: Notes
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 between
Slide 33: Glossary
Glossary For personal use only brookside-energy.com.au 33
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