Brookside Energy Ltd (ASX:BRK) (OTCMKTS:RDFEF) has farmed out a portion of the Jewell Well in the world-class Anadarko Basin to fellow ASX-listed oil & gas company, Stonehorse Energy Ltd (ASX:SHE).
Under the terms of this agreement, Stonehorse has agreed to fund its proportionate share - up to 50% of the available working interest - of all costs associated with drilling and completing the Jewell Well to earn its proportionate working interest share of the well.
The Jewell 13-12-1S-3W SH1 well1 is in the company’s SWISH Area of Interest (AOI).
Unlock considerable value
Brookside managing director David Prentice said: “We are very pleased to welcome Stonehorse as a partner in the Jewell Well.
"Stonehorse has a strong track record, participating alongside us in our endeavours in the Anadarko Basin, including most recently in the very successful Orion Project Joint Venture and the acquisition and subsequent workover of the Thelma Well.
“Our team on the ground in Oklahoma is moving quickly to advance the spudding of the Jewell Well, including work to prepare the all-weather drill pad and lock in the various service companies.
“We are all delighted that with funding in place, we can now begin to unlock the considerable value that lies within our tier-one SWISH AOI acreage position.”
Black Mesa to operate Jewell Well
The farm-out is limited to the Jewell wellbore only.
Brookside will retain 100% of its working interest in the acreage in the Jewell DSU (outside the wellbore), its interest in the Flames and Rangers Drilling Spacing Units (DSUs) and production from all future wells.
Brookside’s controlled subsidiary Black Mesa Energy will operate the Jewell Well.
Transformational for Brookside
Brookside expects the Jewell Well will be transformational and the catalyst to unlocking the very significant value in the company’s SWISH AOI acreage, conservatively estimated at 11,606,000 net barrels of oil equivalent (boe) Prospective Resource (best estimate, unrisked).
Jewell Well pre-drill development activities are well advanced and the company looks forward to providing further updates over the next few weeks as it progresses towards spudding of this highly anticipated well.
