Brookside Energy (ASX: BRK) has secured non-operated interests in five additional proposed horizontal wells across three areas of the United States, targeting the Cherokee Woodford and Sycamore formations.

The additions build on the company's established 11-well operated production base in the SWISH play. Working interests in the newly secured positions are currently estimated to range from approximately one to 12 per cent, providing further opportunities for production and reserve growth. A working interest represents a proportionate share of a well's costs and production, and in non-operated positions drilling and operations remain with another operator.

Managing Director and Chief Executive Officer David Prentice said the opportunities, together with Brookside's recently completed acquisition of Lone Star's US oil and gas interests, provide further potential to grow production and cash flow outside the company's operated SWISH program.

"Our operated activity remains the foundation of our business, but we're building other sources of production and cash flow across the Anadarko Basin," Mr Prentice said.

"We're seeing good opportunities through both our existing acreage positions and new non-operated investments. They allow us to participate in quality developments with relatively modest capital commitments, without taking resources away from our operated program.

"Successful development of these wells would add to our production base and help us build scale."

Based on current working-interest estimates and indicative development costs, Brookside expects the total investment across the five wells to amount to approximately US$3.5 million. The program is to be funded from the company's existing working capital and operating cash flow.

Southern SCOOP position

Brookside holds working interests in a 1,920-acre drilling spacing unit (DSU) in the Southern SCOOP, a position established through the company's participation in a Woodford horizontal well that was drilled and completed in 2018. That well produced approximately 300,000 barrels of oil equivalent (BOE) gross in its first 12 months and approximately 1.0 million barrels of oil equivalent gross on a cumulative basis to July 2026. The SCOOP, short for the South Central Oklahoma Oil Province, sits within the broader Anadarko Basin.

Regulatory applications have recently been filed for two proposed extended-length horizontal wells targeting the Woodford and Sycamore formations within this DSU. Of the two, one well is planned as a three-mile horizontal and the other as a two-mile horizontal. Extended-length laterals of this kind expose a longer section of the target formation per well, and approval of applications such as these is a standard step before drilling can proceed.

Separately, Brookside has secured an approximately one per cent working interest in a proposed three-mile Woodford horizontal well in the Northern SCOOP.

Cherokee activity

The Cherokee has emerged as one of the most active horizontal development plays in western Oklahoma, with increasing multi-well development and transaction activity across the play. It is one of the target formations covered by the newly secured non-operated positions.

Share price

BRK shares were down 2.56 per cent at 38.0 cents, giving the company a market capitalisation of $36.89 million.

Source: The Market Online Australia