Brookside Energy Ltd’s (ASX:BRK) infill development work at the Centaur Project in the Anadarko Basin in Oklahoma, USA has delivered strong production results averaging 30-day production of 2,600 barrels of oil equivalent per well.
The production results from this drilling spacing unit (DSU) have so far exceeded pre-drill estimates, with the four infill development wells producing in excess of 600,000 barrels of oil equivalent in their first three months of production.
Operators in the STACK play are now moving to optimise spacing density for these full-field development infill projects with early results producing productivity above type-curve expectations.
Results provide “effectiveness of business model”
Brookside managing director David Prentice said: “These results provide further evidence of the effectiveness of our business model, generating value at all points along the development path.
“In this case, we opted to participate in the full-field development of one of the high-quality, low-risk DSUs that we have been able to accumulate in the STACK Play.
“We are harvesting the value in this DSU by electing to participate in these wells and collect the revenue generated from hydrocarbon sales.
“It is particularly pleasing to see the tier-one operators that are active in the STACK Play moving toward an understanding of the optimum spacing for full-field development.
“This is critical for the future of the play both in terms of reserves per unit and value per acre.”
The Devon Energy-operated Centaur DSU is part of Brookside’s “pilot-study” non-operated STACK Play holdings.
This was the first of several low-risk opportunities to emerge from the inventory of proved, undeveloped locations that the Company has delineated within these holdings.
Brookside’s participation in this development highlights the flexibility in our business model that enables us in this case to capture value from this acreage by choosing to participate in the development and receive sales revenue.
The Centaur project wells (five wells per 1,280-acre DSU) delivered very strong initial production results, with average IP30 per well of 2,600 barrels of oil equivalent.
The results support the per-acre valuations for the proved reserves previously reported2 by the Company for its STACK Play holdings.