BRK - Brookside Energy

[doogie_goes_off]

If they drill rangers and get 2 producing wells there will be some serious upside.

 

[greggles]

The Jewell Well flowback operations have now commenced with the well flowing to temporary facilities as the stimulation fluids start to be recovered. Now acitivites on site will be focused on turning the well from temporary facilities to permanent production facilities.

Everything seems to be progressing on schedule and without incident. The BRK share price has been up and down recently but it is up to 3.3c today and as long as no negative news is announced it shouldn't go much below this. Pad construction at the Ranger's Well has now commenced and management seem keen to push things forward as efficiently as possible.

The final four months of 2021 should be very good for BRK, as long as everything continues to goes to plan.

 

[Chilledpain]

Some great modelling on the Jewell well - as taken from the Brookside Energy Reddit page. (link below)

https://www.reddit.com/.../updated_jewel_well_modelling/

 

[greggles]

The Jewell Well is performing well for BRK with production at the high end of expectations. The company is currently preparing for the spud of their second well, the Rangers Well.

The Jewell Well has now achieved daily production of 1,727 BOE per day (82% liquids, 18% gas) reaching our pre-drill high side estimate with liquids production reaching 1,413 barrels per day (973 bbls oil, 440 bbls NGL’s).

To date approximately 32% of the stimulation fluid has been recovered and production continues to increase steadily. The Company will report a peak rate (IP24), as well as IP30 and IP90 rates, as these are achieved.

 

[doogie_goes_off]

1000 barrels (oil only) at $83 US a barrel is ~ 30M US a year - well cost ~ 10M so paid back in December then ~$20M US (closer to $30M Aus free cash flow next year - company has a market cap of $87M Aus so a price to earnings middle of next year will be ~3 or otherwise known as extremely ******* cheap. Normal P/E ratio for a cash positive stock is >10 so that would make it 3x undervalued. It will take a while for the analysts to catch up. My price target is 5c after the December quarterly comes out.

 

[greggles]

The Ranger's Well spudded last Saturday evening Oklahoma time. The video below provides a general update and a near term outlook.




The share price has fallen back in recent months but the company is still pushing things forward at breakneck pace. The oil price decline sparked by the COIVID Omicron variant hasn't helped matters. Personally, I think BRK is a steal at current levels, especially given that the company will be moving forward rapidly on new wells in 2022. BRK management is one of the most proactive teams I have seen. 2022 will be BRK's year for sure.

 

[greggles]

Brookside has shaved six months off its Flames Well development timeline to take advantage of the record oil prices. Brookside has an 80% interest in the well, which is expected to spud later this month.

 

[greggles]

Flames Well is now in production, making this the third well for BRK in the SWISH AOI (Jewell, Rangers & Flame). Share price is up today but given the current and projected level of unhedged oil production for BRK (1,728 BOE per day last quarter and growing) I feel it is still well below fair value.

Production is expected to continue to grow in the coming quarters and the company has a very healthy cash position of $31.6 million.

 

[InsvestoBoy]

Still looking at this @greggles ?

I have become pretty interested in this and been doing my DD, even though investing in ASX microcaps is way outside my wheelhouse.

Took a parcel before the close yesterday, let's see if I have the nous to hang onto it, I usually chicken out.

No new info in the half yearly released overnight but good to see all the info in one place.

 

[InsvestoBoy]

Chickened out and sold it for what I paid just before todays close

 

[greggles]

Still looking at this @greggles ?

I took my eye off it as it hasn't managed to gain any traction. I'm not sure I can continue to have any faith in management's business strategy at least for now. It just doesn't seem to be having any real impact on the share price.

They are drilling wells and generating cash flow but can't seem to get any real momentum going. Revenue was $11.7 million last quarter but when you take royalties, production costs, exploration and evaluation into account, BRK seems to be treading water financially.

Maybe I'm just thinking too short term but I have come to the conclusion that there are better opportunities elsewhere at the moment.

 

[noirua]

Brookside Energy (ASX:BRK) triples acreage in Bradbury area of interest at Ardmore Basin, Oklahoma

Brookside Energy (ASX:BRK) has tripled its acreage position in the new Bradbury area of interest (AOI) within the Ardmore Uplift at the Ardmore Basin in Oklahoma, US.

themarketherald.com.au

Brookside Energy (BRK) has tripled its acreage position in the new Bradbury area of interest (AOI) within the Ardmore Uplift at the Ardmore Basin in Oklahoma, US.

With three drilling spacing units already controlled with 80 per cent working interest in each 40-acre unit in the new AOI and the opportunity for further growth as prospecting continues, the company said it is excited at the “enormous potential” of the area.

 

[greggles]

BRK in a trading halt this morning pending an announcement regarding (i) Independent Reserves Certification for the Company’s
SWISH Area of Interest and (ii) an on-market share buy-back to be undertaken by the Company.

Looks like BRK management is trying to re-establish market confidence by buying back its own shares at current prices which it obviously thinks are undervalued. At the end of 2022 the company had almost $34 million in cash so they have enough capital to be able to buy back quite a few BRK shares.

The Independent Reserves Certification appears to be a similar confidence restoring move that will convey to the market an accurate assessment of BRK's oil reserves, enabling a better understanding of their current position and future potential.

 

[greggles]

BRK has today released its Swish AOI Independent Reserves Certification and announced its on-market share buy back.

BRK management intends to buy back (commencing 15 May) up to 500,000,000 of its own shares, representing approximately 9.97% of its shares on issue. The reasons for the buy back are clearly explained in today's announcement:

The Board believes the Company’s market capitalisation does not reflect the underlying asset value, and notes the Company’s recently announced 2022 full year financial results (A$53 million in revenue, after tax profit of A$15.1 million and EPS of 0.35 cents) and today’s announcement of Independent Reserves Certification for our SWISH AOI acreage delivering US$170.5 million or A$0.05 Per Share pre-tax NPV Net Reserve Value.

The Reserves Certification has calculated that BRK has 11.9 million Proved and Probable Reserves BOE at the Swish AOI. This translates to a pre-tax NPV of US$170.5 million and total net sales of US$629 million. Further details can be found below.

This is a bold and confident move by management who are clearly spelling out how the market has gotten BRK wrong and are putting their money where their mouth is. The BRK share price has risen 23.08% today to 1.6c with the market doing some of the heavy lifting for the company and buying up its shares. This buy back should create some nice buying support for BRK as it heads into the new financial year and this will hopefully cause the market to re-evaluate the value of BRK as company and whether that value is reflected in its current market cap given its reserves and potential future revenue.

 

[Telamelo]

BRK has today released its Swish AOI Independent Reserves Certification and announced its on-market share buy back.

BRK management intends to buy back (commencing 15 May) up to 500,000,000 of its own shares, representing approximately 9.97% of its shares on issue. The reasons for the buy back are clearly explained in today's announcement:



The Reserves Certification has calculated that BRK has 11.9 million Proved and Probable Reserves BOE at the Swish AOI. This translates to a pre-tax NPV of US$170.5 million and total net sales of US$629 million. Further details can be found below.

This is a bold and confident move by management who are clearly spelling out how the market has gotten BRK wrong and are putting their money where their mouth is. The BRK share price has risen 23.08% today to 1.6c with the market doing some of the heavy lifting for the company and buying up its shares. This buy back should create some nice buying support for BRK as it heads into the new financial year and this will hopefully cause the market to re-evaluate the value of BRK as company and whether that value is reflected in its current market cap given its reserves and potential future revenue.

View attachment 156243

Oil price shot up +5% due to increased conflict/war in the Middle East (likely to escalate it seems).. noticed profitable oil producer Brookside Energy BRK trading around 52 week lows @ 0.011c

P.S. What am I missing here !? as BRK seems ridiculously cheap to me on all metrics and currently undertaking a share buy back too!

DYOR as always

Brookside Energy Ltd (ASX:BRK) Share Price - Market Index

Today’s BRK share price, stock chart and announcements. View dividend history, insider trades and ASX analyst consensus.

www.marketindex.com.au

 

[greggles]

Oil price shot up +5% due to increased conflict/war in the Middle East (likely to escalate it seems).. noticed profitable oil producer Brookside Energy BRK trading around 52 week lows @ 0.011c

P.S. What am I missing here !? as BRK seems ridiculously cheap to me on all metrics and currently undertaking a share buy back too!

DYOR as always

Brookside Energy Ltd (ASX:BRK) Share Price - Market Index

Today’s BRK share price, stock chart and announcements. View dividend history, insider trades and ASX analyst consensus.

www.marketindex.com.au

The market continues to ignore BRK. It's not a particularly exciting company and they need to pull an interesting acquisition out of the bag or something to convince the market they have the potential to grow the company. It's not just enough to have $25 million in bank and make modest profits by pumping some oil out of the ground.

There is potential here but in my opinion management aren't unlocking it.

 

[Telamelo]

The market continues to ignore BRK. It's not a particularly exciting company and they need to pull an interesting acquisition out of the bag or something to convince the market they have the potential to grow the company. It's not just enough to have $25 million in bank and make modest profits by pumping some oil out of the ground.

There is potential here but in my opinion management aren't unlocking it.

 

[greggles]

David Prentice is a good salesman and what he is saying sounds good. He just needs to start delivering the growth part of the BRK story.

 

[Telamelo]

A bit of interest/buying pressure today in BRK as market depth improving imo so perhaps a 'good omen' with quarterly report due out any day now.. dyor

 

[Telamelo]

BRK reported $28.1 million 'cash in the bank' with no debt & unhedged.