The team at Black Mesa Production, LLC (Black Mesa) are pursuing a leasing program (on behalf of the Company’s wholly owned subsidiary BRK Oklahoma Holdings, LLC (BRK Oklahoma) aimed at identifying and securing working interest acreage within the core of the STACK Play. To date these ongoing efforts have secured ~430 non-operated working interest leasehold acres spread across six (6) soon to be drilled 1,280 acre spacing units.
Several operators in this play are already testing increased drilling density with eleven (11) successful pilots being conducted in and around Brookside’s core focus area. Of particular note is Devon Energy Corp’s (NYSE:DVN) recently announced Alma spacing pilot which tested five wells per section across a single interval in the upper Meramec, delivering 30-day production rates averaging 1,400 oil-equivalent barrels (Boe) per day per well, of which 60 percent was light oil.
Importantly, the non-operated working interest leasehold acres being secured by BRK Oklahoma will be developed by experienced and well funded tier one operators, including Continental Resources, Inc. and Marathon Oil Corp and this initial development can be funded via the recently announced Drilling Joint venture to be established between BRK Oklahoma and Merchant Funds Management Pty Ltd.
The current leasing campaign is ongoing and as the location of the acreage and the contractual terms of the leases are commercially sensitive at present, the Company will make a more fulsome disclosure when the current campaign is finalised and the final acreage acquisition opportunities have been identified and secured.
Click here to read the full ASX announcement in relation to the STACK Leasehold Acquisitions.
A copy of the Company’s latest Investor Presentation can also be viewed here.