Brookside Energy Limited · ASX:BRK
Brookside Energy — Shareholder Meeting (May 2018)
20 slides from Brookside Energy's shareholder meeting presentation, May 31, 2018
Slide 1: SWISH > Step Change Growth – Annual General Meeting
For personal use only SWISH > Step Change Growth Inflection Point :- a decisive moment in the course of some entity, event or situation that marks the start of significant change. Annual General Meeting 31 May 2018 brookside-energy.com.au
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer 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 (“Brookside Energy” or “t
Slide 3: Corporate & Capital Structure
Corporate & Capital Structure For personal use only ASX:BRK 12 Month Share Price Performance $0.025 100,000,000 Share Price Range A$0.008 – A$0.021 $0.020 80,000,000 Market Capitalization ~A$14m BRK A$ Share Price $0.015 60,000,000 FPO’s 987,500,000 Volume $0.010 40,000,000 ASX:BRKO1. 685,000,000 $0
Slide 4: Share Price Performance v WTI
12 Month Share Price Performance v WTI $US/bbl For personal use only $80.00 0.025 $70.00 0.02 $60.00 BRK A$ Share Price 0.015 WTI US$/bbl $50.00 Interest increased to ~18.2% in high $40.00 impact STACK Well 0.01 7 Mar 18 $30.00 Initial production rates Production & Cash Flow Record 5,400 BOE/day Ini
Slide 5: Investment Proposition
Investment Proposition For personal use only ü Anadarko Basin Focus (STACK & SCOOP Plays) Six-month Growth Profile ü Leasing Undeveloped Acreage (ground level direct investment) 2,000-acres > 10,000-acres “Buy-Low” ü Initial Development Drilling Funded (off- balance sheet, Drilling Joint Venture and
Slide 6: Acreage Revaluation Business Model
Acreage Revaluation Business Model For personal use only 1 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 7: Case Study - Strategic Divestment Validates Business Model
“Case Study” - Strategic Divestment Validates Business Model For personal use only ü Strategic sale in the first “full field” development unit in the STACK Play ü Acreage acquired (undeveloped non-operated leasehold) in late 2016 at an average US$2,500 per acre ü Divestment achieves US$28,600 per ac
Slide 8: Black Mesa Production – Deal Structure
Black Mesa Production – Deal Structure For personal use only ü Traditional “Oil Man’s” deal, Black Mesa Production, LLC commonly used “Peer to Peer” style Reservoir Engineering of investment provides alignment Exxon, Crystal Oil, Medallion Production and with Brookside shareholders Bill Warnock 43yr
Slide 9: Anadarko Basin – World Class Plays with Stacked Reservoirs
Anadarko Basin – World Class Plays with “stacked” Reservoirs For personal use only Basin Stratigraphy brookside-energy.com.au 9
Slide 10: 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 10
Slide 11: SWISH – Step Change Growth Opportunity
SWISH – Step Change Growth Opportunity For personal use only ü Black Mesa has identified an exciting (low risk) opportunity in southern SCOOP (“SWISH”) ü Target reservoirs (Woodforde Shale and Sycamore Limestone) are already being successfully exploited by other operators (Newfield Exploration & Con
Slide 12: Identifying Sweet Spots Along The Basin Margin
Identifying “Sweet Spots” Along The Basin Margin For personal use only brookside-energy.com.au 12
Slide 13: Woodford Shale & Sycamore Lime – Type Section
Woodford Shale & Sycamore Lime – Type Section For personal use only ü Woodford Shale Target Thickness ranges from 340’ to 500’ Good Resistivity & Porosity throughout the reservoir Organic rich, oil and gas prone source rock for entire Anadarko Basin ü Sycamore Target Thickness ranges from 320’ to >3
Slide 14: Land and Leasing Activity
Land and Leasing Activity For personal use only Large land positions north of SWISH are already leased and locked up by large independents or private equity backed companies Oklahoma Oil & Gas Leases – Last 60 days Brookside brookside-energy.com.au 14
Slide 15: Initial SWISH Operated Sycamore Well
Initial SWISH “Operated” Sycamore Well For personal use only ü Low risk infill drilling opportunity in SWISH ü 430 acres of un-drained reservoir, or ~5.4MMboe (23 Bcf and 1.6 Mmbo) of recoverable oil and gas ü Potentially six locations in this one unit, two Sycamore and four Woodford Shale ü First w
Slide 16: Funded and Positioned for Step Change Growth
Funded and Positioned for Step Change Growth For personal use only ü Core World-Class Anadarko Basin holding secured with visibility to expansion up to 10,000-acres ü 11 wells currently producing with a further 16 wells at various stages of development ü ~US$2,000,000 in forecast cash-flow to be re-
Slide 17: 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 17
Slide 18: 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 19: Appendix – BOK E-Spectrum Advisors
Appendix – BOK E-Spectrum Advisors For personal use only brookside-energy.com.au 19
Slide 20: Appendix – Glossary & Notes
Appendix – Glossary & Notes 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