Brookside Energy Ltd delivered a standout quarter in Q4 2024, posting record production growth and a 667% jump in operating cash flow, while completing a major development project ahead of schedule and under budget.
- Q4 net operating cash flow surged 667% to A$12.2 million
- Record net production of 2,459 BOE per day, up 129% quarter-on-quarter
- FMDP project completed ahead of schedule and 15% under budget
- Strong closing cash balance of A$11.3 million despite significant CAPEX
- Plans underway for US NYSE listing and new drilling in 2025
Operational Breakthroughs Drive Financial Strength
Brookside Energy Ltd has capped off 2024 with a remarkable quarterly performance, underscoring its growing footprint in the prolific Anadarko Basin of Oklahoma. The company reported a record A$21.1 million in cash receipts from sales for the December quarter, alongside a staggering 667% increase in net operating cash flow to A$12.2 million. This surge reflects both robust production growth and operational efficiency gains.
The company’s flagship SWISH Project continues to be the engine of growth, delivering a 129% quarter-on-quarter increase in net production to 2,459 barrels of oil equivalent (BOE) per day, with liquids comprising 67% of output. This production leap was achieved despite temporary well shut-ins earlier in the quarter, highlighting the resilience and scalability of Brookside’s assets.
FMDP Project: A Model of Execution Excellence
Central to Brookside’s success was the completion of the Full Field Development Program (FMDP), a four-well initiative that came online ahead of schedule and approximately 15% under the A$36 million budget. The project’s capital expenditure of A$19 million in the quarter was largely funded through internal cash flow and reserves, demonstrating disciplined financial management. The FMDP wells delivered impressive initial production rates, with liquids yields around 80%, reinforcing the quality of Brookside’s drilling and completion strategies.
In addition, Brookside increased its average working interest in FMDP wells to about 70%, securing a larger share of production revenue and enhancing future profitability. This strategic move positions the company well to capitalize on the high-margin nature of these assets.
Expanding Horizons: Gapstow FFD and US Listing Plans
The quarter also saw the commencement of production from the Gapstow Full Field Development (FFD), operated by Continental Resources. Although production and cash receipts from Gapstow will be recognized in future quarters, early indications suggest strong initial rates, expected to contribute approximately 150 BOE per day net to Brookside over the next two years.
On the corporate front, Brookside is advancing preparations for a US listing via American Depositary Shares on the NYSE American exchange. The company is aligning its financial statements with IFRS standards and progressing its annual reserves review, key steps before submitting the SEC disclosure documents. This move aims to broaden Brookside’s investor base and enhance liquidity.
Looking Ahead: Strategic Drilling and Growth
Building on its operational momentum, Brookside has outlined an ambitious 2025 strategy focused on inventory growth and targeted drilling. Plans include spudding three new 10,000-foot lateral horizontal wells in the SWISH Play, with the first well expected to commence in Q1 2025. Preparatory activities such as pad selection and regulatory approvals are already underway, signaling a proactive approach to sustaining production growth.
Despite significant capital investments, Brookside ended the quarter with a strong cash position of A$11.3 million and access to an undrawn US$25 million credit facility, providing ample liquidity to support ongoing operations and development.
Bottom Line?
Brookside’s Q4 results mark a pivotal step in its US growth story, but sustaining this momentum will hinge on execution of its 2025 drilling program and successful US market entry.
Questions in the middle?
- How will Brookside manage production and cash flow volatility amid fluctuating commodity prices?
- What is the timeline and expected impact of the planned US NYSE listing on Brookside’s capital access?
- How will the integration of Gapstow FFD production influence Brookside’s overall portfolio performance?