The Leon 1-23-14XHM well of Continental Resources, Inc (NYSE:CLR) has delivered an initial 24-hour production (IP24) of 1,945 barrels of oil equivalent from a mid-length lateral in the Sycamore formation.
Leon is within Brookside’s SWISH AOI about 4-miles west of the company’s Flames Drilling Spacing Unit (DSU) and 2-miles east of the Ringer Ranch well which recently recorded an IP24 of 2,067 barrels of oil equivalent.
Sycamore formation targeted
Brookside holds a 0.12% working interest in Continental's Leon well and the associated DSU and a 0.02% working interest in the Ringer Ranch well.
The company’s first operated well to be drilled in the SWISH AOI, the Jewell 1-13-12SXH well, will also target the Sycamore formation.
It is the third Sycamore well to come online in the SWISH AOI since the middle of 2019 as the area continues to attract the attention of tier-one operators enjoying significant success in southern SCOOP.
“Three from three”
Brookside managing director David Prentice said: “We are now three from three in the SWISH AOI, with three Sycamore wells delivering initial production (IP24) results above 1,500 barrels of oil equivalent.
“It is very exciting to see these results continuing to emerge from the drilling and completion activity that is happening in southern SCOOP.
“These wells are all in close proximity to our Jewell DSU and to the other operated DSUs that we are putting together within the SWISH AOI.
“The initial production data we are seeing is better than what we had forecast in our own pre-drill estimates for a Sycamore well in the SWISH AOI and we believe this is likely to support higher recovered volumes, rates of return and ultimately higher per-acre values.”
SCOOP and STACK plays in the Anadarko Basin, Oklahoma.
First sales for the Leon well were reported on October 29, 2019.
Tracking above estimates
These initial results are very encouraging, and Brookside is looking forward to seeing how the well performs over the coming months.
This data will add to the results seen from the Ringer Ranch well, which is also tracking above Brookside’s own pre-drill estimates for a typical horizontal Sycamore well in the SWISH AOI.
Shares up 12.5% to an intra-day high of 0.9 cents.
'Real Estate Development' approach
Brookside generates shareholder value with a 'Real Estate Development' approach to acquiring prospective oil and gas plays in the Anadarko Basin.
This basin is a proven tier-one oil and gas development province with existing oil and gas gathering and transportation infrastructure, a competitive and highly experienced oil and gas service sector, and a favourable regulatory environment.
Brookside acquires prospective acreage and adds value to it by consolidating leases and proving up oil and gas reserves.
The company then has the option of selling the revalued acreage or maintaining a producing interest.
This model is commonly used by private equity investors in the sector and has been piloted successfully by Brookside in the northern Anadarko Basin’s STACK Play.