Brookside Energy Reports 3% Production Dip, 38% Price Rise, and Suttles Pad Completion

Production and Pricing Dynamics

Brookside Energy Limited (ASX:BRK) saw its Group Net Production slide 3% to 127,732 barrels of oil equivalent (BOE) in the June quarter 2026, reflecting the expected natural decline with no new wells coming online. Net sales volumes dropped 10%, a larger fall primarily due to timing differences between production and purchaser statements rather than operational issues.

Commodity prices, however, provided a welcome boost. The blended realised price surged 38% to US$42.69 per BOE, lifting revenue attributable to sales by 24% to US$5.32 million. This price strength cushioned the impact of lower sales volumes and helped maintain a steady revenue stream amid a flat gross operated production of 216,196 BOE.

Suttles Pad Completion and Drilling Commencement

Brookside completed construction of its Suttles two-well pad during the quarter, including two independent production trains and securing electrical and gas takeaway infrastructure ahead of first production. The company secured Kenai Drilling’s Rig 18, which mobilised directly from an active program, ensuring operational continuity.

Drilling began shortly after quarter-end with the spudding of the Sabres Well on 7 July 2026, targeting the Sycamore Formation. Rig 18 is scheduled to move across the pad to drill the Whalers Well, targeting the Woodford Formation. Brookside holds approximately 70% working interest in both wells, which are fully funded within an $18.5 million approved for expenditure (AFE) budget.

Cash Flow and Capital Discipline

Despite increased expenditure on the Suttles development, an on-market share buy-back, and higher hedge settlement costs, Brookside’s cash position remained stable at A$14.52 million at quarter-end. Cash receipts from customers were A$9.80 million, slightly down 4% quarter-on-quarter, affected by a US$540,000 payment received just after quarter-end.

Net operating cash flow fell 73% to A$0.93 million, largely due to timing of receipts and partner distributions, as well as increased corporate and hedge costs. The company received A$1.84 million in prepayments from Working Interest partners towards the 2026 drilling program, further supporting liquidity. Brookside’s US$25 million credit facility remains undrawn, offering additional financial flexibility.

Riverbend Leasehold Expansion

Brookside advanced its leasehold capture at the Riverbend Area of Interest, securing over 40% of its initial strategic acreage target. The company is focused on disciplined leasing in this fragmented mineral ownership area, with technical and regulatory groundwork underway to mature the opportunity toward future drilling. Riverbend represents a potential second operated growth platform in the Anadarko Basin but remains in early development stages.

Corporate Developments and US Listing Progress

Brookside completed an on-market share buy-back during the quarter, acquiring approximately 1.9 million shares (around 2% of pre-buy-back issued capital) and cancelling them, reducing the total shares on issue to 94.48 million. The buy-back was funded from operating cash flow and represented about 4.25% of FY2025 EBITDA. Buy-back activity is now paused pending completion of the proposed US American Depositary Receipt (ADR) listing.

The US listing remains a strategic priority to broaden investor access and improve liquidity but has been delayed due to extended PCAOB audit timelines. The company expects to submit its SEC registration statement as soon as the audit is complete, with no new timing guidance provided. The Board remains committed to the listing as a means to address valuation discounts relative to US peers.

At the Annual General Meeting held in May 2026, shareholders re-elected Michael Fry and elected Christopher Weatherl as directors. The remuneration report received a second strike, but the conditional spill resolution was defeated.