Brookside Energy’s Sabres and Whalers wells have entered production at the Suttles Pad, with combined gross output exceeding 1,200 BOEPD during flowback. The two-well development is also tracking 15% below its original budget, although peak rates and stabilised economics remain unproven.
- Combined gross production above 1,200 BOEPD during flowback
- Liquids represent approximately 78% of reported output
- Suttles two-well development tracking 15% below original AFE
- Brookside’s operated SWISH producing well count rises to 11
- Peak production rates have not yet been established
Suttles wells cross 1,200 BOEPD during flowback
Brookside Energy Limited (ASX:BRK) has brought both wells at its Suttles Pad in Oklahoma into production, with the Sabres and Whalers wells delivering combined gross output above 1,200 barrels of oil equivalent per day over a 24-hour period. Liquids account for approximately 78% of that reported production, although the figure includes estimated natural gas liquids and is not yet a settled production rate.
The milestone lifts Brookside’s operated SWISH producing well count to 11 and puts two further locations from its independently certified reserve base into production. Output from both wells has increased since first sales as flowback and clean-up work continues.
Development costs running below the original budget
The economics have received an early boost from construction and drilling discipline. Brookside says the complete two-well development, including pad construction, drilling, completions and facilities, is tracking approximately 15% below the original AFE, or authorised for expenditure, budget.
That combination of rising early production and lower reported development costs is encouraging, but the company describes it as an early indication rather than a final assessment of the pad’s economics. Revenue, realised prices, operating costs and the wells’ longer-term decline profiles are not provided in the release.
Different reservoirs leave peak rates unresolved
Sabres, targeting the Sycamore formation, and Whalers, targeting the Woodford formation, are showing different early production profiles, which Brookside says is expected given the contrasting reservoir characteristics. Both wells remain in flowback, with load recovery at approximately 20% for each well.
Peak production rates have therefore not yet been established. The current 1,200 BOEPD figure should be read as a snapshot during clean-up rather than a declared sustained rate, and it is reported on a combined gross basis rather than as Brookside’s net production.
Working interests confirmed above earlier estimates
Following final Oklahoma Corporation Commission hearings and completion of mop-up pooling, Brookside’s working interests were confirmed at 72.4% in Sabres and 71.3% in Whalers. Those figures are slightly above the approximately 70% interests previously reported, increasing the share of well costs and production attributable to Brookside, subject to the distinction between working interest and net revenue interest.
The next useful evidence will come from the wells after flowback ends: stabilised production, individual well rates and the final development cost. Until then, Suttles offers a promising early operating signal, but not yet a complete test of the reserve conversion and cash-flow case.
Bottom Line?
Suttles has started strongly on production and cost control, but its investment significance will depend on stabilised rates after flowback and the cash flow those rates generate.
Questions in the middle?
- What production rates will Sabres and Whalers sustain once flowback and clean-up operations are complete?
- How closely will final development costs remain to the current estimate of 15% below the original AFE?
- What net production, revenue and reserve-base changes will Brookside report once the wells establish longer-term performance?