Brookside Energy Limited

Whalers reached planned depth with casing cemented and Rig 18 released, completing drilling of both Suttles wells with full planned laterals in target formations. Zipper-frac completion is next, then sales. No flow rates or costs reported yet.

drilling result

Completed purchase of Lone Star's US oil and gas interests, a Stonehorse subsidiary, for US$1.114m (~US$9,100 per flowing BOE/d). Adds ~123 BOE/d, about 9% of Q2 production, with no new shares issued. Stonehorse is Brookside's Orion partner.

asset acquisition disposition

Sabres spudded 7 July 2026 as the first of two Suttles wells, targeting the Sycamore at about 7,700 feet with a ~1.5-mile lateral. Brookside holds ~70% working interest. Whalers follows. This ends the wait for Rig 18 and the earlier May start.

drilling spud

Site works have started at the next SWISH two-well pad (Sabres and Whalers, targeting Sycamore and Woodford), with drilling on track for May 2026. This is the first new drilling since Bruins and follows the Q4 2025 note of no new drilling.

drilling scheduled

Year-end 2025 reserves certified by Haas & Cobb: 2P 12.52 MMBOE (12.35 prior), 1P 5.33 (4.98) and PDP 2.80 (2.65). Additions exceeded the 2025 production of ~662,000 BOE, so 2P is essentially flat.

resource reserve update

Brookside adds a new Riverbend area of interest (~24 sq miles) in the Anadarko Basin and has begun leasing up to four 1,280-acre units. Company modelling shows up to ~76% return and ~630,000 BOE per well base case. These are company estimates; no drilling is planned yet.

asset acquisition disposition

Bruins early results: about 36,900 BOE produced (71% liquids), peak 24-hour rate ~1,040 BOE/d and 30-day rate ~750 BOE/d. Company estimates ~1.1m BOE gross reserves, ~67% return and ~3.75-year payout at ~79% working interest (above the ~70% expected earlier).

well test result

Brookside added a fifth SWISH drilling unit, 960 acres next to its Jewell and Bruins units, lifting its drilling inventory by about 26%. This is the fifth unit it was pursuing. Initial plan is two ~8,000ft wells (Sycamore and Woodford) once the unit is approved; no timing or cost given.

asset acquisition disposition

First oil and gas sales were established from the Bruins well, 14 weeks after its 25 February spud, on budget and on schedule. It is the ninth operated SWISH well and the first of the 2025 program. Initial rates will be reported once stabilised.

production update

The Continental-operated Gapstow wells produced nearly 1.65m BOE gross in their first three months (~27,500 BOE net to Brookside), with average IP90 of 1,792 BOE per well (10,000ft normalised, 73% liquids). Confirms the strong early rates reported when production began; Brookside holds eight wells.

well test result

Year-end 2024 reserves (Haas & Cobb, 1 Jan 2025): proved developed producing up 50.1% to 2.65m BOE, 1P up 21.8% to 4.98m BOE, 2P up 6.8% to 12.35m BOE. Lifts 2P from 11.6m BOE; PDP additions replaced 268% of 2024 production at ~US$16.40/BOE.

resource reserve update

The Bruins 2-11-1S-3W WXH1 well was spudded, the ninth Brookside well in the SWISH Play and the first since the four-well FMDP. Kenai Rig 19 is drilling surface casing. Delivers the first of three planned 2025 wells; no results yet.

drilling spud

2025 plan shifts to inventory growth and three new 10,000-foot wells instead of moving directly to full field development, citing softer oil prices. Net capex US$18.3m, EBITDA US$18.0m at US$75 WTI, funded from cash flow. Changes the earlier 16-well SWISH FFD plan starting early 2025.

investor presentation

The four FMDP wells posted combined gross IP24 of 4,330 BOE/d and IP30 of 3,761 BOE/d, about 80% liquids, comparable to the parent Flames well. About 260,000 BOE gross produced in flowback; wells now in steady-state production. Delivers the IP rates promised earlier.

flow test result

Gross operated production rose 178% from the September quarter average (~1,807 BOE/d) to over 5,000 BOE/d. The four FMDP wells hit a combined spot rate of 4,300 BOE/d and have produced over 164,000 BOE. Follows the 8 October early flowback figures (~80,000 BOE).

production update

Consolidation timetable confirmed after the 11 October holder vote (approval marked as received): 50-for-1, trading in new shares from 16 October on deferred settlement. Ordinary shares drop from 4,772,878,961 to 95,457,579; share rights from 27.3m to 546,364. Resolves the proposed consolidation.

security holder rights change

The four FMDP wells produced about 80,000 BOE gross (87% liquids) in early flowback, earning roughly US$4.3m gross revenue, with combined output near 3,900 BOE/d and under 6% of frac fluid recovered. Brookside's average working interest is about 68%. Peak and IP rates still to come.

flow test result

Brookside's US subsidiary secured a three-year, interest-only US$25m credit facility with UMB Bank, with an initial borrowing base of US$8.5m, currently undrawn. Hedging is required only above 50% utilisation. Follows earlier talk of a facility up to US$15m for SWISH development.

debt financing

All four FMDP wells are producing and selling oil and gas, about seven months after Iginla spudded in February. Early rates are called 'very encouraging' but no figures are given; IP24, IP30 and IP90 rates are to follow. Resolves the first-sales target.

production update

Brookside resolved to pursue an NYSE American listing via American Depositary Shares while keeping its ASX primary listing, and to consolidate shares 1-for-50, cutting about 4.77 billion shares to roughly 95.5 million, subject to shareholder vote. Builds on the December 2023 aim to attract US investors.

other

Rocket, the fourth and final FMDP well, reached 17,955 feet and is cased; all four wells took 115 days versus 136 planned. Completions start late July/early August, with first sales late Q3/early Q4 and target of 2,500 BOEPD net by Q4 2024. No flow rates yet.

drilling result

Brookside will join Continental Resources' Gapstow full field development next to its Bruins and Jewell units, in seven wells at 20.9% working interest for a net US$2.5m, already in the 2024 capex budget. The company expects about 150 BOE/d net (70% liquids) from the December quarter.

farm in farm out agreement

Brookside outlines a 16-well full field development of SWISH from early 2025, after the current drilling program. Forecasts (at US$70 oil) are ~4,500 BOE/d and US$51m net income in 2028. Updated 2P reserves are 11.6 MMBOE, down from 11.9. Net capex is estimated at US$126m, funded from cashflow and a credit facility of up to US$15m.

resource reserve update

Iginla, the first Flames-Maroons well, finished drilling at about 18,685 feet, on budget and schedule. The company says the lateral crossed numerous fracture swarms with gas shows in oil-prone Woodford shale. These are drilling indications, not production results; casing is being cemented.

drilling result

Chris Robertson, a Sydney-based investor and shareholder since 2016, joins as independent non-executive director from 1 March 2024. Brookside also buys out the 11.6% back-in interest held by US executives, paying a 1.3% SWISH royalty plus seven instalments of about US$618,000 from 2025.

director officer appointment

The first of four Flames-Maroons wells, Iginla, has spudded, with Kenai Rig 19 set up ahead of schedule. This begins the drilling the company calls transformational, targeting about 2,500 BOE/d by Q4 2024. No results yet.

drilling spud

December quarter: receipts A$12.2m, cash A$26.2m after A$3.9m prepaid for the four-well Flames-Maroons program, no debt; net production 1,410 BOE/d, down 7% on the quarter. First well spudded; the plan targets about 2,500 BOE/d by Q4 2024. Buy-back finished at 250m shares (A$3.13m), with a further one planned.

quarterly activities report

Shane Gray, a US oil and gas CFO formerly with El Toro Resources, is appointed CFO of Brookside and Black Mesa, starting later in November and reporting to David Prentice. The company links the hire to the next stage of monetising its assets.

director officer appointment

Brookside added about 400 gross acres in the Woodford 'Oil Window', lifting its position there 12.5%, and says the OCC approved a 1,280-acre Bruins unit (up 33%) and initial Flames approvals. This builds a contiguous 3,200-acre block; monetisation steps are still being mapped, with no terms given.

asset acquisition disposition

Juanita is on commercial production, commingled from two Simpson Group sands, averaging 112 barrels of oil a day over five days with an initial peak of 130. That is below the 329 and 258 BOE/d test peaks. Remaining zones to be tested later.

production update

Brookside has produced 1 million BOE (715,000 barrels of liquids) in under two years since Jewell came on. It says plans for monetising the 11.9 MMBOE 2P reserves (US$170.5m, A$0.05/share NPV10) are 'well advanced', with no deal or terms given.

production update

Juanita's first production test, from a Simpson Group sand, peaked at 329 BOE/d (75% oil) and averaged 174 BOE/d over 27 days; about 5,065 BOE sold so far. Three deeper secondary and tertiary zones showed low commerciality. First flow result for the Bradbury well, after March's logs showed pay.

well test result

Wolf Pack reached a peak IP24 of 2,034 BOE/d (88% liquids) and IP30 of 1,869 BOE/d, both Brookside operated-well records. It has produced over 140,000 BOE, worth over US$7.9m gross at current prices. Company WI is 83.93%. Resolves the open IP24/IP30 thread.

well test result

Independent engineers Haas certify SWISH 2P net reserves of 11.9 MMBOE (1P 3.7 MMBOE), with pre-tax NPV10 of US$170.5m (A$254.5m). This is a big step up from the 3.45 MMboe maiden reserves of 2017, and covers twenty undrilled locations. Excludes Bradbury and future pooling.

resource reserve update

FY2022 results: revenue A$53.0m (2021: A$12.6m), record after-tax profit A$15.1m (2021: A$2.6m loss), 613,533 BOE gross operated, acreage up 41% to ~4,615 acres. First annual profit in the period covered; EPS figure here was later amended.

annual report

Wolf Pack has produced over 40,000 BOE (80% oil) in its first 30 days, generating about US$2.5m estimated gross revenue at WTI US$70. Rates have exceeded 1,500 BOE/d and are rising. This gives the first figures after February's 'very encouraging' sales start.

production update

Logs on the Juanita well show 389 feet of net pay within 1,119 feet gross across all the pre-drill target zones, and production casing is set. Production testing, several months of reservoir-by-reservoir work, starts in 2–3 weeks. Pay is not yet flow or reserves. WI stated as 95%.

drilling result

Wolf Pack, the first Phase Two well, has established commercial oil and gas sales during flowback, a company-record three months from spud. Early rates are called 'very encouraging' but no figures are given; IP24, IP30 and IP90 will be reported later.

production update

Wolf Pack reached total depth of ~17,260 ft in 37 days, with oil and gas shows throughout the lateral, and production casing is run and cemented. Rig release is under way; stimulation and production facilities come next. Flow rates are not yet known.

drilling result

The Rangers well has paid out seven months after first production, with drilling and completion costs recovered. It produced ~173,400 BOE (~83% oil and NGLs) and US$13.243m of revenue. This resolves the open payout thread, which had been forecast for late Q3 2022.

production update

The Juanita well hit an over-pressured zone in the Springer Group at ~3,500 ft TVD, so drilling is suspended and the rig demobilised as it is unsuited. Oil shows were seen in the first of ten target zones. Restart is likely early in the New Year.

drilling progress report

The Wolf Pack well, first of the Phase Two SWISH development wells, has spudded using Latshaw Rig 12 and is drilling the vertical section toward the first casing point. This follows the rig contract and pad work; operations are reported on schedule, with no results yet.

drilling spud

Brookside added a fourth operated SWISH unit, the Bruins DSU, next to its Jewell and Flames units, lifting SWISH acreage by 34%. It is not yet held by production; price and interest are not stated here. Adds to the 20+ well inventory.

asset acquisition disposition

The Flames well, producing since early August, reached an IP24 of ~1,500 BOE/day (75% liquids), second highest Woodford rate in SWISH, and an IP30 of ~1,200 BOE/day. This resolves the pending Flames rates and is comparable to Rangers' IP30 of 1,200.

flow test result

Brookside has tripled its acreage in the new Bradbury area, east-northeast of SWISH, holding three 40-acre units at ~80% working interest. The first low-cost vertical well, Juanita (~6,450 ft TVD), is set to spud mid-October, funded from cash and cashflow.

drilling scheduled

Black Mesa has contracted Latshaw Rig 12 to drill the Wolf Pack well, a Sycamore horizontal (~17,000 ft planned) and the second well in the Rangers unit. Spud is expected in early November. It is the first well of the post-HBP development phase.

contract award

Flames began commercial oil and gas sales during early flow-back, so its unit is now held by production, completing the three-unit HBP program. Brookside's working interest is stated as ~71.3% (earlier estimate ~80%). IP rates to be reported later.

production update

Record June-quarter receipts of A$11.723m and operating cashflow of A$7.941m (up 236%). Net production 961 BOE/d (up 117%). Cash A$31.6m (A$23.4m after Loan Note repayment), no debt, 5,011,272,899 shares. Rangers cumulative 81,733 BOE; Rangers unit now held by production.

quarterly activities report

The remaining 37,654,688 unexercised BRKOB options were placed through the CPS Capital underwriting. This closes out the options exercise process begun in March; total proceeds are not stated here.

capital raising announcement

Rangers is flowing 1,310 BOEPD (~86-87% oil and liquids) with 21% of stimulation fluid recovered, up from 1,008 BOEPD on 12 May. About 73,160 BOE produced; gross revenue est. above US$6.75m at WTI US$110. Formal IP24/30/90 rates still to come.

flow test result

Rangers reached 1,008 BOEPD (~80% oil) in early flow-back with only 17% of stimulation fluid recovered. It has produced ~27,417 BOE, with estimated gross revenue above US$2.4m at WTI US$100. Brookside holds ~80% WI. Formal IP24, IP30 and IP90 rates are still to come.

flow test result

Flames reached TD of ~18,140 ft, slightly short of the ~18,300 ft projection, and production casing is cemented. It is Brookside's longest well and the last of the three-well hold-by-production program. Completion and first production are next.

drilling result

Rangers has begun commercial oil and gas sales during early flow-back, with volumes rising as modelled. The Rangers unit is now held by production, which the company says will allow reserves to be booked. Brookside holds ~80% WI. No rates given yet.

production update

The Jewell well has paid out all drilling and completion costs in under six months of production, beating pre-drill estimates. It produced ~250,000 BOE (~73% oil and NGLs), with net revenue of US$9.03m at 80.4% NRI. The release footnotes a 41.6% working interest, which conflicts with earlier 84-90% figures.

production update

The Flames well, the third and final well of the SWISH hold-by-production program, spudded late the previous week and is drilling the vertical section. It follows the 7 March acceleration. Brookside is now drilling Flames while completing Rangers; ~10,000 ft Woodford lateral planned, TD ~18,300 ft.

drilling spud

Brookside accelerated the Flames well, a ~10,000 ft Woodford lateral, with Kenai Rig 18 mobilising and WI expected above 80%. CPS Capital is providing short-term loan funding and options underwriting; the company says it is fully funded to complete its three-well program. Loan size and terms are not in the text shown.

drilling scheduled

Citation (10.2%), Continental (5.3%) and Exxon subsidiary XTO (1.7%) confirmed participation in the Rangers unit, with a further 2.1% taken by smaller private firms. Brookside expects to keep ~80% WI, in line with earlier '>80%' guidance, and Black Mesa operates.

farm in farm out completion

Rangers reached total depth of ~17,460 ft on 11 January, slightly short of the ~17,750 ft planned. Extensive oil and gas shows continued through the horizontal section, per the company. Next is running production casing; no flow results yet.

drilling result

The Rangers well, Brookside's second operated SWISH well after Jewell, was spudded on the evening of 11 December and is drilling the vertical section. Weekly operational reports are promised through the drilling campaign.

drilling spud

Jewell reached a peak 24-hour rate of ~1,800 BOE per day and a 30-day average of 1,604 BOE per day, which the company says is significantly above its pre-drill estimates. Production is steady at ~1,630 BOE per day. 2022 SWISH plans are being finalised.

flow test result

Jewell recorded 1,238 BOE per day (85% liquids) early in flow-back, with only about 22% of stimulation fluid recovered. The company says this exceeds pre-drill estimates. First actual flow rate after earlier updates gave none; Brookside's interest is about 84%.

flow test result

The Jewell well, Brookside's first operated SWISH well, is now selling oil and gas during flow-back, with rates approaching pre-drill base case estimates. The Jewell unit is now held by production, which could allow reserves to be booked. No flow figures given.

production update

Brookside raised A$9.0m before costs via a CPS Capital-led placement to professional investors. Funds will lift its Rangers unit interest and fund a majority working interest in the Rangers well, the second of the planned 20-plus well program. Issue price and share count not stated in the text.

capital raising announcement

Brookside leased acreage next to the Rangers unit, set to increase its SWISH acreage by 13%. Paperwork is filed with the OCC for an additional 320-acre spacing unit. Price and acreage amount are not stated; it may improve Rangers well economics.

asset acquisition disposition

Jewell surface facilities are complete; the gas line is on schedule. The US$3.0m Anadarko Leasing Facility, due 31 July 2021, will be repaid with US$2.0m of shares (125m at an 8.5% discount to the 30-day VWAP) and US$1.0m cash, leaving the company debt free.

debt financing

ExxonMobil subsidiary XTO (4.5%) and Citation Oil and Gas (2.3%) took up working interests in the Jewell DSU, with 5.7% from others. Brookside expects to keep up to 87% and Black Mesa remains operator. Resolves the earlier open question on partner participation.

farm in farm out completion

The Jewell well reached total depth of ~14,100 feet, with oil and gas shows and potential natural fractures in the Sycamore lateral. Production casing is cemented and the rig released. Completion and gas line work come next; flow rates are not yet known.

drilling result

The Jewell well, Brookside's first operated SWISH well, was spudded on the evening of 8 May 2021 and is drilling ahead in the vertical section. Weekly reports are promised. It follows the delayed rig mobilisation and starts the potential 20-plus well program.

drilling spud

The OCC issued the permit to drill the Jewell well (Black Mesa as operator; ~14,755 ft measured depth, ~7,440 ft vertical). Rig 14 is due on location 26 April with spud scheduled for 1 May 2021, the first of a potential 20-plus well program.

drilling scheduled

Black Mesa signed a daywork contract with Latshaw Drilling for Rig 14 to drill the Jewell well, with mobilisation to start as soon as possible. A rig is now secured for Brookside's first operated SWISH well; other service contracts are still being finalised.

contract award

Brookside agreed to buy the eleven STACK wells held in its Merchant Drilling JV, for 125m shares (~US$2.0m, ~US$8.30 per BOE). It lifts net production to ~110 BOE/d, nearly four-fold. Completion depends on shareholders refreshing share-issue capacity at the 1 April meeting.

asset acquisition disposition

Brookside farmed out part of the Jewell wellbore to Stonehorse, which will fund up to 50% of drilling and completion costs for the same share of the well. Brookside keeps 100% of the acreage outside the wellbore, and Flames and Rangers. Spud preparations are advanced.

farm in farm out agreement

Brookside raised A$8.25m before costs in an oversubscribed CPS Capital placement, fully funding the Jewell well, the first of a potential 20-plus well program. Price and share count are not stated in the text. Far exceeds the roughly A$1.2m cash held at December.

capital raising announcement

Thelma well came online at an initial rate of 130 barrels of oil a day from a behind-pipe zone, expected to settle near 30 a day. First 313-barrel load sold 30 Dec 2020. A further 40 HBP acres were bought, creating a new area of interest, the Bradbury Prospect. Resolves the Thelma workover thread.

well test result

First Prospective Resource estimate for the Jewell, Flames and Rangers DSUs: 11,606 Mboe net (best estimate, unrisked), prepared by Black Mesa. Jewell would be the first of a potential 21-well, 5-year program. Prospective resources are unrisked and not yet drilled.

resource reserve update

Brookside launched a funding initiative with Hall Chadwick, the SABO Development Trust, to fund a working interest share of drilling the Jewell well. Stonehorse also registered interest. Spud is expected in the March quarter of 2021, first sales in the June quarter. This addresses the Jewell funding thread; trust subscription size is not stated.

joint venture update

The Orion JV signed a purchase and sale agreement for its third producing well, Thelma 1-32 (40 HBP acres) in Murray County, about 20 miles from Jewell. Acquisition cost is US$20,000; workover is estimated at ~US$149,000, split 50/50. Rig expected early November.

asset acquisition disposition

The A$300,000 option offer closed fully subscribed, taking total offer proceeds to A$1,687,493; issue needs shareholder approval. Brookside will also issue 68m shares and 68m options to OEC for facility interest due to 31 December 2020. A general meeting will follow.

capital raising announcement

Reviewed half-year report to 30 June 2020 differs materially from the unreviewed accounts released 11 September: audit adjustments added A$667,000 to the loss. On the earlier A$818,828 loss, this implies roughly A$1.49m (inference).

financial restatement

OEC agreed to extend the Anadarko Leasing Facility maturity from 31 December 2020 to 31 July 2021, other terms unchanged. This removes the near-term repayment date, resolving that open thread. The facility was about US$2.9m drawn.

debt financing

Entitlement offer closed after the 99.4m-share shortfall was placed at A$0.005 (A$497,003) plus a 26.4m-share oversubscription placement (A$131,875). Total raised A$1,387,493 before costs, resolving the shortfall thread. Funds are for Orion acquisitions and working capital.

capital raising announcement

Entitlement offer closed with applications for 151.7m shares raising A$758,615, about 60% of the ~A$1.26m maximum. The remaining 99.4m shares, with free options, go to a shortfall placement via CPS Capital under the prospectus.

capital raising announcement

Orion JV closes its second purchase, the Mitchell 12-1 well, also inside the Jewell unit. Workover is due later in August. With Newberry, success could hold up to 160 acres by production. Workover expected to give a mid-30% return, with payout in about 2.5 years.

joint venture update

Brookside plans a 1-for-4 entitlement offer of ~251m shares at A$0.005 with a free option (A$0.011, June 2022), raising up to ~A$1.26m, plus up to 300m options at A$0.001 for A$300,000. CPS Capital is appointed adviser and lead manager.

capital raising announcement

Stonehorse's copy of the Orion update: the JV bought a 43.45% interest in the Newberry vertical well inside Brookside's Jewell Unit, then completed a workover lifting gas from 6 to ~40 Mcf/day. Costs of ~US$104,000 were split 50/50. It is a first Orion deal.

joint venture update

Orion JV bought a 43.45% interest in the Newberry 12-1 vertical well in Brookside's Jewell Unit, holding 80 acres by production. A workover lifted gas from 6 to ~40 Mcf/day; costs were ~US$25,200 plus ~US$78,897, shared 50/50. First deal under the new JV.

joint venture update

Brookside and Stonehorse form the Orion Project, a 50/50 JV to buy mature, gas-weighted producing wells in the Anadarko Basin, operated by Black Mesa. Initial commitment is US$500,000 combined; Black Mesa gets an 18.75% back-in after payout. It extends the drilling deferral with an acquisition path.

joint venture update

Stonehorse's release of the new 50/50 Orion Project JV with Brookside to buy producing, gas-weighted Anadarko properties, with Black Mesa as operator. Initial combined commitment is US$500,000; Black Mesa gets an 18.75% back-in after payout. Same news as Brookside's release.

joint venture update

Responding to oil prices at a ~20-year low, Brookside cuts general and administration costs ~30% (MD fee A$180,000 to A$120,000) and shifts to renewing SWISH leases rather than drilling. Its Black Mesa stake rises from 17.2% to 28.7%, cutting the back-in to 17.8%.

other

Brookside now has three SWISH spacing units: Jewell, Rangers and Flames. It expects ~91% WI in the 640-acre Rangers unit after pooling, and has ~64% of the 960-acre Flames unit so far. This builds on Jewell's earlier pooling.

asset acquisition disposition

Brookside says acreage trading in the SWISH area brought in about US$720,000 cash and built a ~2,500-acre SCOOP position. It reports a ~90% WI in Jewell, with site works planned this quarter. No drilling date or funding for the well is given.

asset acquisition disposition

Brookside sells Stonehorse a 15.6% WI in Bullard and 2.3% in Henry Federal for US$1.15m, effective 1 Nov 2019. It keeps ~4.96% and ~4.97% well interests and 100% of proved undeveloped reserves. Gives fresh cash and a ~US$21,000 per acre valuation marker.

asset acquisition disposition

Two Sycamore wells in the SWISH area, Betts (no Brookside interest) and Boardwalk (2.42% WI), each flowed above 1,600 BOE/d (IP24). This supports the Sycamore target for Jewell. Brookside holds non-operated interests in five wells in the area.

well test result

Stonehorse withdrew from the Jewell well step-in, and Brookside formally agreed. This reverses the 12 Sep funding path. Brookside says it is still working on funding for Jewell drilling and completion, with no timing given.

farm in farm out agreement

Brookside now expects ~90% WI (~80% NRI) in the 880-acre Jewell Unit after pooling elections. Stonehorse agreed to take a well-bore interest and fund 100% of site works. No spud date is given, but drilling preparations are moving ahead.

joint venture update

Continental-operated Henry Federal 1-8-5XH well in the STACK (Brookside 7.27% WI) flowed 1,319 BOE/d (65% oil) over its first 24 hours. Brookside says this supports recoveries at the upper end of its STACK estimates; sustained results and cashflow are promised in Q3.

well test result

The Oklahoma regulator issued a pooling order for the Jewell Unit, an 880-acre unit, with Black Mesa as operator. Brookside holds ~47% of acres and expects over 95% via pooling. This resolves the pooling thread; a drilling date is still not given.

regulatory community update

Brookside is joining Devon Energy's four-well Centaur infill project in the STACK, its first development of proved undeveloped locations. Interest is small; two wells reached ~21,000 ft depth. Costs are funded from working capital, with revenue expected Q4 2019.

drilling progress report

Brookside has acquired ~45% of available acres in the Jewell Unit, its first operated SWISH development unit, and regulatory approvals are in. Pooling is expected to lift its working interest to ~95%; the parent well location is staked, but no drilling date is given.

regulatory community update

Maiden reserves of 3.45 MMboe net (2.83 MMboe proved, 617 Mboe probable) covering ~20% of its Anadarko holdings, with NPV10 of US$12.5m. Management cites ~US$30,000 per acre. Resolves the maiden reserve report thread; the evaluation date is 31 December 2017.

resource reserve update

Bullard 1-18/7H, Brookside's largest-interest well at 20.57%, in the Woodford Shale (SCOOP) flowed 1,828 BOE/d IP24 and 1,479 BOE/d IP30, about 5 miles from SWISH. It supports booking proved undeveloped reserves; LS Operating holds an option to take over the interest.

flow test result

Landreth BIA 1-14H, Brookside's first well to pay back, recovered its drilling and completion costs in 11 months. Brookside's 2.5% interest earned US$230,000 net revenue; it now receives 75% of future net revenue after ~US$210,000 is returned to the Drilling JV.

well test result

Brookside sold ~96.5 acres of royalty acreage (RA Minerals) for US$1,475,000, about US$15,300 per acre, versus ~US$878,000 paid in March 2016. This is its second STACK acreage sale; proceeds will fund SWISH leasing.

asset acquisition disposition

A new STACK well, in which Brookside holds a ~2.0% interest, set a company-record IP24 of ~5,400 BOE/day (IP30 ~4,200). It produced ~154,000 BOE (~15% oil) in 38 days and is forecast to pay out in under 18 months.

flow test result

Brookside sold eleven acres in a STACK development unit for US$28,600 per acre, over 10 times the ~US$2,500 average cost paid in late 2016. Proceeds go to SWISH leasing and STACK drilling. First sale under its acreage-revaluation model; the total raised is not stated.

asset acquisition disposition

At ASX's request Brookside retracted its 19 April release and told investors not to rely on it. ASX objected to the potential reserve value claim and the in-place and recovery estimates. The reissued version drops the US$135m figure and the type-well tables.

admin correction

Brookside raised A$3.16m through a placement of 197.5m shares at A$0.016, each with a free listed option (A$0.02, expiring 31 Dec 2018). Money will fund leasing in a new ~8,000 acre southern SCOOP area, 'SWISH'. Options need approval at the AGM.

capital raising announcement

Net production is ~300 BOE/d from the first nine wells, with first sales since May 2017, and is expected to give ~US$2.0m net cash flow over 12 months. Company targets ~1,000 BOE/d from 14 further wells and says it can book PUD reserves. These are forecasts.

production update

Anadarko Leasing and Oklahoma Energy Consultants agreed to raise the leasing facility limit from US$2.0m to US$3.0m, with other terms unchanged. It follows November talks and funds further leasing; repayment terms remain those of the 21 June release, not given here.

debt financing

Working interest leasehold rose to ~1,680 acres, 30% above the 1,280 acre target, with total holdings ~1,780 acres including royalty. Funded from the US$2.0m Anadarko Leasing Facility; talks have begun with OEC to expand it.

asset acquisition disposition

Brookside reached its initial 1,280 working interest acre target, with total Anadarko holdings of about 1,380 acres including royalty acreage. Average working interest per development unit rose to ~5.4%. This completes the ~1,000 acre position reported on 31 July.

asset acquisition disposition

The first five Brookside wells averaged ~1,700 Boe/d IP24, which the company says beats its pre-drill expectations; two exceeded 2,000 and the best was ~2,300 Boe/d. Brookside now holds twenty wells (eighteen working interest, two royalty), nine spud. Interests are small, so revenue to Brookside is modest.

flow test result

Brookside's STACK and SCOOP holdings rose a further ~40% to about 1,000 acres, closing in on the 1,280 acre target; the company calls it a 100% increase since the 31 May announcement. Also cites a Devon well's 6,000 Boe/d peak rate, which is not a Brookside well.

asset acquisition disposition

Brookside's new subsidiary Anadarko Leasing signed a facility with Oklahoma Energy Consultants for up to US$2.0m to fund leasing. With the US$3.5m Merchant venture, non-equity funding totals US$5.5m. Management says this avoids equity dilution; repayment terms are not in the text.

debt financing

Brookside added about 200 working interest acres, lifting STACK and SCOOP holdings 40% to over 700 acres across ~27 development units. The company says this could support upwards of 170 wells at ~3% average interest. Progress toward the 1,280 acre target.

asset acquisition disposition

Strack 1-2-11XH, Brookside's first STACK well, flowed at an IP24 of 1,784 BOE/day (77% oil) and produced 33,000 BOE in 30 days. Brookside's interest is about 1.0%. Merchant is repaid first, then takes 25% of Brookside's net revenue from the well.

flow test result

Brookside placed 165m shares at $0.012 to raise A$1.98m, with one free option per two shares (exercisable at $0.02 by 31 Dec 2018). Proceeds fund STACK leasing and working capital. Larger than its earlier $0.01 placements.

capital raising announcement

A second Marathon well, ALTA BIA 1511 1-6-31MXH (~22,549 ft), was permitted on Brookside's leasehold. It also placed 40m shares at $0.01 to raise $400,000 for leasing and working capital.

capital raising announcement

Marathon began drilling Strack 1-2-11XH, Brookside's first STACK working-interest well, with 12.5 acres in the unit. Target depth is ~20,106 ft in about 26 drilling days. Brookside says its share of costs is funded by the Merchant venture.

drilling spud

Brookside added ~100 acres of STACK leasehold, taking holdings to ~400 acres (up from ~300), and placed 60m shares at $0.01 to raise $600,000 for leasing and working capital. It expects more acreage by year-end to fully use the Merchant joint venture funds.

capital raising announcement

Brookside's STACK holdings grew to ~300 acres, nearly double the ~160 acres reported in August, in the over-pressured volatile oil window. It says this is well down the path to a 10 million barrel proved reserve target, a company claim. Merchant joint venture is to fund development.

asset acquisition disposition

Marathon Oil will operate Strack 1-2-11XH, the first of six wells on Brookside's STACK leasehold, an extended-reach well with 20,448 feet measured depth. Brookside holds 12.5 acres in the unit; its costs are to be funded by the proposed Merchant joint venture.

drilling scheduled

Brookside's STACK working-interest leasehold more than tripled to ~160 acres, up from 50, across six soon-to-be-drilled 1,280-acre spacing units. It says this gives exposure to 48-60 potential wells in full development, which is a company view. The leasing campaign continues.

asset acquisition disposition

Brookside agreed in principle to a STACK-A joint venture with Merchant Funds Management, which would lend up to US$3.5m to fund its share of up to ten STACK wells. Merchant is repaid first from revenue, then gets 25% net revenue interest plus options. Binding terms are not yet agreed.

farm in farm out agreement

Brookside added 50 acres of leasehold in one core STACK section, found by Black Mesa under the Drilling Program Agreement. Location and terms are withheld as commercially sensitive. This is the first working-interest acreage, beyond the earlier royalty deal; the leasing campaign continues.

asset acquisition disposition

Through BRK Oklahoma, Brookside bought royalties over about 100 acres in Blaine County's STACK Meramec play for about A$1.1m, the first deal under the Black Mesa joint venture. Black Mesa gets an 18.75% back-in after payout. It also launched a $1m raise of 100m shares at $0.01, with half-options.

asset acquisition disposition

Brookside's US subsidiary acquired a 15% stake in Black Mesa Production LLC, a Tulsa-backed energy start-up, effective 1 December 2015. Equity members commit US$3.126m over three years pro rata; David Prentice joins the Black Mesa board. This is the first step on the Cicero-advised acquisition path.

asset acquisition disposition

Placement of up to 49,999,697 shares at $0.012 to raise about $600,000, with free 1-for-4 options at $0.02 expiring 2018. Cicero manages it for a 6% fee. Funds go to the main business and working capital.

capital raising announcement

ASX will reinstate Brookside's shares to quotation from 5 August 2015 under code BRK, after the recapitalisation. This ends the suspension that began 10 December 2014.

listing compliance notice

The DOCA was wholly effectuated on 15 July 2015 and Guggenheim's receivers retired. Control returned to the board, and the company is preparing to relist as BRK. This ends the administration that began in December 2014.

bankruptcy or receivership

The prospectus offer closed oversubscribed, raising $2.5m. DOCA conditions precedent are fulfilled, and completion is expected the following week, which would settle creditor claims.

capital raising announcement

Prospectus for up to 2.5 billion shares at $0.001 to raise up to $2.5m, after a 1-for-2 share consolidation approved 5 June. Includes a 4-for-1 priority offer to shareholders. Funds are mainly to pay creditors under the DOCA and allow relisting.

capital raising announcement

Creditors approved a Deed of Company Arrangement on 1 April 2015. Subsidiaries holding Big River and East Oklahoma assets were transferred to Guggenheim; only ~282 net acres in Payne County remain. A recapitalisation raising up to $2.5m at $0.001 per share is planned, with a 5 June meeting.

business combination

Guggenheim, the US$100m lender, has appointed KordaMentha receivers over the collateral, and directors then appointed Ferrier Hodgson voluntary administrators on 10 December 2014. The refinancing did not close; the covenant breach flagged in October has ended in receivership and administration.

bankruptcy or receivership

ASX suspended Red Fork's shares from quotation on 10 December 2014 following the appointment of administrators and receivers and managers. Shareholders cannot trade until the suspension is lifted.

listing compliance notice

A preferred re-financing partner was selected to replace the Guggenheim loan and add working capital; no term sheet is signed yet. Red Fork told the lender it expects to breach covenants at 30 September, though the lender is still working with it.

debt financing

Six months to 30 June 2014: revenue US$28.5m, EBITDA US$15.3m, plus US$10.7m from the acreage sale. The US$100m Guggenheim loan is now classed as current, creating a working capital deficit, with no waivers sought beyond 30 September. Several non-binding proposals have been received.

half year report

Mid-2014 independent reserves rose despite reduced drilling: 1P up 25% to 23.3 mmboe (NPV10 US$293m), 2P up 41% to 34.6 mmboe, 3P up 22% to 41.0 mmboe. The company says 1P value comfortably exceeds its market cap plus net debt.

resource reserve update

Board says reserve and production growth has not been reflected in the share price, and extra capital cannot reasonably come from conventional debt or equity. Spending will be limited to cash flow and asset sales, and a strategic review will consider asset, joint venture or whole-company transactions.

other

Sold about 7,400 acres of undeveloped Big River acreage, with seismic rights, for roughly US$11m cash. The land lies outside the held-by-production schedule, so the 18.6 mmboe 1P reserves are unaffected. Proceeds will strengthen the balance sheet, described as a first step in the revised 2014 plan.

asset acquisition disposition

Year-end 2013 independent reserves rose: 1P to 18.6 mmboe (up 130% on the year) with NPV10 of US$277m, and 3P to 33.5 mmboe (US$491m). The board is also reviewing the 2014 Big River programme to avoid more debt or equity, which would mean slower drilling.

resource reserve update

Board renewal: two more independent non-executive directors are to be appointed. Bruce Miller will step down from the board by end 2013 but stay in management. Chairman Michael Fry intends to retire at the AGM before end of May 2014, with a replacement chairman to be chosen.

director officer appointment

Closed a US$150m senior secured term loan with Guggenheim Partners, replacing the US$45m F&M Bank facility; US$100m was advanced at closing. Interest is LIBOR (2% floor) plus 8.5%, maturing 25 December 2017, a far higher rate than the 3.25% F&M facility announced in March.

debt financing

FY2013 (to 30 June) revenue rose 194% to US$18.2m, with gross profit US$11.3m. Group 1P reserves up 73% to 14 mmboe; pro-forma cash A$/US$ stated as $51.5m after the July raise of $47.7m. Credit facility lifted post year-end to US$100m limit, US$45m drawable.

annual report

Reserves at 30 June 2013 rise sharply: net 1P to 14.0 mmboe (from 8.1) and 3P to 28.3 mmboe (from 18.0). 1P NPV is US$196.3m, up 120%. This should support a larger borrowing base, following the July US$100m facility expansion.

resource reserve update

Red Fork says the Woodford shale beneath its Mississippian acreage could add over 650 gross unrisked drilling locations, covering over 90% of the acreage. It is already committed to seven non-operated Woodford wells at ~12% average interest. This is a company assessment, not a drilled result.

other

Red Fork agrees to raise A$47.7m through a placement of 111m shares at A$0.43, not underwritten. Funds go to Mississippian development, more non-operated wells, a possible ~2,000-acre acquisition and working capital. 53m shares need approval at an EGM around 19 August.

capital raising announcement

Red Fork's F&M Bank revolving credit facility, set at US$65m in March, is expanded to US$100m, with the borrowing base raised to US$45m. Proved reserves PV10 stands at US$144m at 31 May 2013. Oil hedging of ~18,000 barrels a month is being arranged.

debt financing

Red Fork is set to close a US$65m revolving credit facility with F&M Bank at 3.25% interest, with an initial US$20m borrowing base set on proved reserves. It ends the company's nil-debt position and will fund Mississippian development alongside cash flow.

debt financing

Independent mid-year certification lifts Mississippian 3P reserves 49% to 9.6 mmboe net (from 6.5 mmboe in October 2012), across 41 net wells. 1P is 2.6 and 2P 3.5 mmboe net; 3P NPV(10) is US$164.6m. Contingent resource figures are the June 2012 numbers.

resource reserve update

Chris Girouard, previously Senior Vice President Land, becomes President of Red Fork USA and head of US operations. Director Perry Gilstrap retires from the board effective 18 February 2013 and stays as a consultant for twelve months.

director officer appointment

Non-operated PQML #9 well (PetroQuest operator, Red Fork 12.5%) peaked at 1,291 boe/d (87% oil) and averaged about 629 boe/d over 27 days. It sits in Development Area 7 where Red Fork holds thirty-two 640-acre sections; a data-sharing agreement is being negotiated.

well test result

Red Fork agreed a term dedication with DCP Midstream to sell gas and liquids from future wells in two Pawnee and Payne County townships, giving take-away capacity into an existing gas market. Eight wells now producing; non-operated activity expected to increase.

material agreement

Maiden certified Mississippian reserves (Lee Keeling, at 30 June 2012): 2P 4.73 mmboe (NPV10 US$45.5m), 3P 29.0 mmboe, and 1C contingent resource 166.9 mmboe. This resolves the open reserves certification, and shows most of the value is still contingent.

resource reserve update

Red Fork will raise A$50m through an underwritten placement of about 74.63m shares at A$0.67, an 8% discount, to fund faster Mississippian drilling, leasing and working capital. It needs shareholder approval at an EGM around 13 September 2012. Euroz is underwriter.

capital raising announcement

Red Fork agreed to sell crude from its 75,000-acre Mississippian holding to a Phillips 66 subsidiary, effective 1 July 2012, covering pipeline connection and/or trucking. This secures a buyer and outlet for the oil after months of negotiation.

contract award

Blair #1-24H tested as high as 20 barrels of oil per hour with 240,000 cubic feet of gas per day-equivalent flow during the last 24 hours. Only a small fraction of load water has been recovered and rates are not stabilised. First oil load sold to Phillips66.

well test result

Red Fork added 13,000 net acres through a federal BLM lease sale, lifting Mississippian holdings to about 73,000 net acres. Leases have a 10-year term and 87.5% net revenue interest, adjacent to its Noble County area.

asset acquisition disposition

Tahara #1-28H recorded a 30-day peak rate of 304 boe per day (80% oil) while still cleaning up, with about 2,000 feet of fluid above the pump. Company says it is on track for a net 1-to-1 payout in about 8 months and EUR in line with the play average.

well test result

Red Fork-operated McMurtry #1-21H spudded 21 December in Noble County, targeting 9,500 feet total depth with about 4,200 feet of lateral. Red Fork holds 65.6%, SandRidge 29.8%, Antinum 4.5%, Chesapeake 0.1%. First well of the Noble County program.

drilling spud

Placement of 40.46 million shares at A$0.69 raises A$27.9m before costs, within the 15% placement capacity, to fund operated drilling, leasing and non-operated wells. Priced well above the A$0.32 raise in March 2011; Euroz led.

capital raising announcement

Tahara #1-28H produced 283 barrels of oil equivalent in 24 hours to 4 December (240 bbl oil, 260 Mcf gas) with only about 20% of load water recovered, and the rate is still rising. First flow rate after the frac; the 30-day peak is still to come.

well test result

Schlumberger logs on Tahara #1-28H give original oil in place of 58.4 million barrels per square mile, with about 835 feet of oil-filled fractures. Company expects recoverable reserves per section could be up to three times industry average (its expectation, not tested). Flow rates still await the frac.

drilling result

Reserves at 30 June 2011 (Lee Keeling): 2P 17.1 mmboe (2.3 Mmbo, 88.7 Bcf), NPV10 US$119.7m, versus 17.8 mmboe a year earlier. Described as stable despite lower gas prices. Mississippian acreage is excluded; an update is expected after the 2011 drilling.

resource reserve update

Tahara #1-28H reached 8,139 feet on 12 September, with about 4,200 feet of lateral in the Mississippi and good oil and gas shows along its length, and no operational problems. It is a first horizontal drilled result only; flow rates await completion and fracture stimulation.

drilling result

Tahara #1-28H, the first Big River horizontal, spudded 13 August. It targets about 3,100 feet vertical plus roughly 4,500 feet of lateral in the Mississippi Lime, to about 8,698 feet total depth. This starts the five-well program.

drilling spud

Seismic interpretation is complete and the first two Pawnee County horizontal wells are chosen, with a rig being moved in. A contractor is secured for the five-well 2011 program and committed to 2012; continuous operations are planned to the end of 2011. Red Fork holds a majority interest and is operator.

drilling scheduled

Mississippian acreage passes the 50,000 net acre target, with interests in about 250 sections and majority control of 55 (supporting over 165 locations). Seismic is processed over an initial area, completion slots are secured, and the first horizontal well is to be drilled shortly.

asset acquisition disposition

Red Fork completes an A$28.5m placement of 89.06m shares at A$0.32, with up to A$5m more via a share purchase plan. Funds the Big River Mississippian push, targeting about 50,000 acres by mid-2011 and five horizontal wells in 2011. Soros and Macquarie participated.

capital raising announcement

Red Fork enters the Big River horizontal Mississippian oil play in north-west Oklahoma, with about 12,000 acres (100%) and a target of up to 50,000. It plans up to five horizontal wells in 2011 at about US$2.5m each, and has raised A$5.0m short term. A strategy shift beyond East Oklahoma gas.

asset acquisition disposition

Independent certification lifts reserves at 30 June 2010: 2P to 143.1 Bcfe (from 72.8), 3P to 197.6 Bcfe (from 106.5), 1P to 79.9 Bcfe. First East Oklahoma 2P of 78.4 Bcf, largely from the 2009 EOK South acquisition. Resolves the overdue reserve report.

resource reserve update

Moebius #2-28 at West Tulsa reached 5,604 ft and logged three new sand sections totalling 120 ft with strong gas shows, on top of about 80 ft of Red Fork Sand. It will likely become a water disposal well; next well due week of 24 May.

drilling result

Moebius #2-28 at West Tulsa hit about 40 ft of oil pay in the Red Fork Sand, a step-out 2,700 ft from the nearest well. The company says this extends the discovery and starts phase two; the well is still drilling toward 6,000 ft.

drilling result

East Oklahoma South plant optimisation is substantially complete, with about 40 km of new pipeline letting 20 new wells tie in, taking wells in production to 49. Output is about 1 MMcf/d now; the company says the increase will show in September 2010 quarter revenue.

production update

Rosier #2-27 at West Tulsa tested 124 bopd of oil plus 45,000 cf/d gas from the Red Fork sand, the best Pawnee rate so far and 46% above the Fuss #1-34 discovery well. Oil sales begin immediately; this follows the earlier Simpson zone testing.

well test result

First gas sales started at West Tulsa's Pawnee prospect: about 150,000 cf/d of associated gas from two wells, at roughly US$7.00 per Mcfe. This delivers the gas marketing deal flagged in October; facilities can handle 500,000 cf/d.

production update

Testing of a Simpson Sands zone in Rosier #2-27 at West Tulsa's Pawnee prospect gave good shows of 1200-1300 BTU gas with some oil, below the Red Fork sand. Testing continues; the company expects commercial production, but no rates are given. Red Fork sand completions follow.

well test result

First of ten initial wells spudded at East Oklahoma North, the northern JV where Red Fork holds 20-25%. Company expects about 100 wells in various stages across East Oklahoma by year end. East Oklahoma South is producing about 1.125 MMcf/d; first East Oklahoma Central sales slip to Q1 2010.

drilling spud

Steve Miller, president of Tulsa-based private company Orion Exploration, joins the board as a non-executive director. Red Fork also gets access to Orion's technical team, with an option for both to co-invest in new projects, supporting its planned scale-up.

director officer appointment

Closed the East Oklahoma South purchase announced 13 October: 100% working interest in about 63,000 acres with 80+ wells and 25 miles of pipeline. Lifts East Oklahoma holdings to 110,000 acres and total output to about 3 MMcfe/d, roughly US$5m a year gross at current spot prices.

asset acquisition disposition

Secured a gas market for West Tulsa's Pawnee prospect, receiving 80% of spot price and liquids proceeds. This ends the long wait for shut-in gas, over 300,000 cf/d, expected to add over US$1m a year. A ~US$15,000 pipeline link is due to finish with first sales before end 2009.

material agreement

Agreed on 9 October to buy 100% working interest in about 60,000 acres of producing Oklahoma gas assets, with over 80 wells and 25 miles of pipeline. Closing is due 2 November, subject to due diligence. Funded from cash; a US$1.15m deposit is paid and about A$16m cash remains, no debt.

asset acquisition disposition

Independent certification at 30 June 2009 lifts group 2P reserves 78% to 72.8 Bcfe and 3P 24% to 106.5 Bcfe (from 2P ~41 and 3P ~86 a year earlier). A maiden East Oklahoma 2P is booked at about 0.3 Bcf per well; West Tulsa reserves doubled.

resource reserve update

Plans to more than double East Oklahoma acreage via a northern JV with Dallas investors (carried for 25% of 10 wells plus 60,000 acres), and to fast-track West Tulsa to 10 wells by year end. Funded by a A$24m placement of 20m shares at $1.20, subject to shareholder approval around 1 October.

capital raising announcement

Five intervals completed in three East Oklahoma wells, each showing gas, supporting ~300,000 cf/day per well. Oklahoma approved 640-acre spacing. A rig is contracted, with ten wells targeted by end July. First sales now expected before end 2009.

drilling result

Placed 10 million shares at A$0.50 to raise A$5m, oversubscribed, via lead manager Chess Capital Partners. With the options money, over A$8m working capital, no debt, funds all three projects without a JV partner. Follows the 55c placement earlier.

capital raising announcement

Fuss #1-33 at West Tulsa tested gas from the Lower Skinner zone at 150-350 Mcf/day, open flow potential ~900 Mcf/day, no water. Company owns 81.25% net revenue interest. A gas transport deal for sales is still being negotiated.

flow test result

Sonray Capital Markets will underwrite exercise of 15m listed options at 20c, securing about A$3m working capital (headline figure). Sonray receives 6.4m unlisted options at 30c expiring April 2011. Dilutes shareholders if exercised, and shores up cash after it fell to A$4m.

capital raising announcement

Initial production testing at the Pawnee prospect, West Tulsa, was successful, with 160 barrels of oil sold from Fuss #1-34 at end December. Testing continues, possibly moving to electric pumps. This is the first oil sales from West Tulsa, slipping from the end-October target.

well test result

Independent certification at 30 June 2008 lifts 2P reserves 13% to 41.3 Bcfe and total reserves 38% to 85.7 Bcfe. 2P is valued at A$80m (PV10). East Oklahoma carries no 2P and is outside these figures, so the 2P reserve upgrade is from Osage and West Tulsa.

resource reserve update

Joint venture with a Dallas-based group to lease a 200,000-acre unconventional gas area in Oklahoma, with up to US$30m available. Red Fork gets about a 20% carried interest, is carried on the first ten wells, is reimbursed about US$800,000 and operates. About 18,000 acres leased so far.

farm in farm out agreement

The first East Oklahoma well, RDFK #1-3, confirmed the Woodford Shale at 480 ft, about 50 ft thick, with a gas show and good porosity. Company says the project could host over 200 Bcf (analogue-based estimate, not certified). Five wells planned.

drilling result

RDFK #1-3 was spudded 23 July, the first well at East Oklahoma, and will also serve as a water disposal well. Five wells are planned in the initial campaign, with first gas sales expected in the September 2008 quarter.

drilling spud

Redfork #1-20 reached 2,205 ft with five zones showing potential hydrocarbons, including about 10 ft of Wilcox pay, and a Mississippi Limestone find. Completions are planned. Production from the four new oil wells is expected in the September quarter.

drilling result

East Oklahoma holdings rise to about 50,000 acres, lifting total Oklahoma holdings to about 70,000 acres, from 45,000 earlier. Sales infrastructure there is due by end July, and about six wells are due to start before end June. Partnership talks are under way.

asset acquisition disposition

Fuss #1-33, the second West Tulsa well, reached 3,450 ft with about 45 ft gross pay in three zones. A production test result is expected in about 30 days, and a third well is committed. Company says the program is on time and budget.

drilling result

Redfork #1-18 reached about 2,275 ft with 10-12 ft of potentially productive Simpson Sands showing free oil and good fluorescence. Completion and production testing will follow as soon as possible. No flow rates yet.

drilling result

The first West Tulsa well (Fuss #1-34) reached 3,434 ft with about 30 ft of potential pay in the Red Fork Sand. A production test result is expected in about 30 days. If it succeeds, six to eight further locations open up.

drilling result

Fuss #1-34 was spudded on 28 April, the first well of the 2008 West Tulsa program, to about 3,500 ft. A second rig is secured for Osage #1-18 and #1-20, and 10-12 further wells are committed for the first half of 2008.

drilling spud

Terms agreed with a regional gas transmission company for a tap linking Osage to a transmission line so gas can be sold at spot, expected by end of September quarter. Red Fork will not exercise its option to buy the gathering system, saving about US$350,000.

material agreement

Terms are agreed with a US regional gas transmission company to build a tap connecting the 30,000-acre Eastern Oklahoma project to a sales line. Drilling is brought forward 12 months to the first half of 2008, saving about US$1.5m versus the earlier 15-mile pipeline plan.

material agreement

Redfork #3-29 is set to spud at the 100%-owned Osage project, to about 1,500 ft, the first of four wells over about six weeks. The company confirms a drilling schedule for Q1 2008, with staged 6-10 well programs planned through 2008.

drilling spud

Placement of up to 18.5m shares at 55c to raise up to A$10.175m, in two tranches: 7.9m now and 10.6m subject to approval at a meeting around 28 December. Funds are for drilling, pipelines and leasing; target over 6 MMcfe/day within 24 months.

capital raising announcement

Independent engineers Lee Keeling lift proved and probable reserves 250% to 36.4 Bcfe, with total reserves at 62.2 Bcfe. This replaces the in-house 37.6 Bcfe estimate of June. It includes about 1.44 million barrels of oil, all within the 4,200-acre Osage project.

resource reserve update

Osage production reached 1 MMcfe/day from thirteen wells, meeting the September-quarter target. The company puts this at about A$3m a year gross at its 80% share, using forecast prices. Remaining shut-in wells are to be tied in by end October; pipeline infrastructure acquired, with a 10 MMcfe/day goal.

production update

Redfork #1-17 Tyner Sand output rises to about 400 Mcfe/day, over five times the CBM field average. The company says this zone alone could earn over A$1m a year gross and has found at least five new well locations. Completion has begun in Country Club 4A East.

well test result

Redfork #1-17's Tyner Sand fracture treatment gives about 200 Mcfe/day, and Church #88-1's Weir-Pitt coal completion flows 100 Mcf/day. The company says it is on track for 1 MMcfe/day in the September quarter, with about A$4m cash.

well test result

Maiden reserve estimate of 37.6 Bcfe (3P), of which 10.4 Bcfe is proved and probable, across about 24,000 acres in four project areas. It was prepared in-house by company staff. Target is 1 MMcfe per day in the September quarter, fulfilling the earlier promise of a gas-in-place estimate.

resource reserve update

Holdings grow by about 13,500 gross acres to about 18,000 acres (leased or committed), mostly in the first new shale and coal gas area, at 100% working interest and US$30-50 per acre. An initial gas-in-place estimate is promised for the June quarter.

asset acquisition disposition

Director Michael Fry becomes chairman after founder and chairman Tony Brennan resigned to focus on other directorships. Brennan had chaired the company since its October 2005 listing.

director officer appointment

The leasing campaign added about 5,000 gross acres, taking holdings to about 9,200 acres. Leases in hand cover about 2,800 acres at 100% working interest (87.5% net revenue) and US$30 per acre, with 2,200 more committed. Continues the 7 March campaign.

asset acquisition disposition

Initial completions worked: Redfork #1-29 tested at about 14 barrels of oil equivalent a day, #1-17's Tyner Sand swabbed at potential of about 17 barrels a day, and Broken Drum #1C Woodford Shale flows about 75 mcf/day. First production from the new oil and shale zones.

well test result

Redfork #1-17 reached about 2,360 feet and found about 6 feet of Wilcox Sand with free oil and 14 feet of gas-bearing Prue Sand. It sits 1,700 feet from Bass #89-1, which has produced about 35,000 barrels from the Wilcox, extending that oil reservoir.

drilling result

Redfork began a leasing campaign on Oklahoma's Cherokee Platform, targeting about 25,000 acres initially and up to 100,000 acres across three project areas. The campaign aims at shallow unconventional CBM and shale plays, funded by the recent placement, cash reserves and cash flow.

other

Placement of 12.5m shares at 40c raises A$5m before costs: A$3.525m now, A$1.475m subject to shareholder approval. Funds go to Osage County development and working capital. Company again says it is cashflow positive, with six wells due in the March quarter.

capital raising announcement

Completion has begun on Redfork #1-29. The CBM wells are ramping up, with #2-29 at 60 MCFG/day and #4-29 at about 15. The company says it is now cashflow positive, with sales funding lease operating and corporate costs.

production update

Redfork #1-28 reached about 2,978 feet and logs show hydrocarbons in the known coals plus two new zones, the Redfork Sand and Woodford Shale. This extends the #1-29 results; completion plans are still being designed for both wells.

drilling result

Redfork #1-29 reached 2,724 feet. Logs show about 32 feet of oil-bearing Burgen Sand and Arbuckle with free oil in samples, the company's first oil discovery in its own acreage. Completion is planned early in the new year.

drilling result

Redfork #1-29 spudded on 10 December 2006, to about 2,700 feet to test the coals and the oil-bearing Arbuckle formation. It is the first of three wells, the company's first deeper oil test after its shallow CBM wells.

drilling spud

First two new coal bed methane wells, #2-29 and #4-29, are completed and selling gas at initial rates of about 50 and 20 MCFGD. A new shallow zone was found. This follows the August completion work; 15 wells are targeted to be tied in by end 2006.

well test result

The first coal bed methane well, Redfork #2-29, was spudded on 7 July 2006 to about 1,500 feet, the first of four planned. A gas-in-place estimate by independent engineers is expected by end of March quarter 2007.

drilling spud

The purchase of the extra 22.5% was completed on 2 June 2006, giving Red Fork 100% working interest (80% net revenue interest) in the Cherokee Basin project. A $165,000 share offer at 22 cents is now open to replenish working capital.

farm in farm out completion

The A$1.32 million placement of 6 million shares at 22 cents, announced 19 April, is complete and funds the 22.5% interest purchase. Red Fork also plans a further 750,000 shares at 22 cents to raise $165,000 for working capital.

capital raising announcement

Red Fork agrees to buy the remaining 22.5% of its Osage County project for US$1.8 million, lifting its working interest from 77.5% to 100% (80% net revenue interest) and giving it operatorship. It is part-funded by a A$1.32 million placement of 6 million shares at 22 cents.

asset acquisition disposition