PERTH: Brookside Energy Limited and Stonehorse Energy Limited announced the formation of a new Joint Venture (Orion Project) which will enable the companies to exploit opportunities to acquire producing oil and gas properties in the world-class Anadarko Basin, Oklahoma.

Commenting on the announcement, Brookside Managing Director, David Prentice said: “We are delighted to be partnering with Stonehorse on this new venture. This time in the commodity price cycle is presenting some fantastic opportunities and we are extremely well positioned to take advantage of this and to continue to grow our asset base within the SWISH AOI.

“The Black Mesa team has been working hard over the last several weeks sifting through an enormous amount of data looking for the best opportunities and I’m excited to report that this work is already delivering up targets to pursue.

“This is going to be a very exciting initiative for us and we look forward to keeping our shareholders and the marker updated as we progress it.”

Recent global events that have impacted demand for oil and gas, together with the supply side tensions between the OPEC+ nations have resulted in sharply lower commodity prices. This has created a significant opportunity for companies that are able to respond to this macro environment.

The Orion Project is a 50/50 joint venture between Brookside Energy Limited and Stonehorse Energy Limited, with Brookside’s subsidiary Black Mesa Energy, LLC responsible for identifying, acquiring and operating the properties on behalf of the joint venture.

The joint venture participants have committed to an initial combined investment in the Orion Project of US$500,000 with the opportunity to expand this commitment as the joint venture grows.

The joint venture will be acquiring producing properties and the associated “Held by Production” acreage, with an emphasis on natural gas weighted production from mature vertical wells with very low terminal decline and substantial remaining economic life.

The producing properties will be cashflow positive at the current Forward Strip pricing, with upside that can be unlocked from remedial workover activities or from unexploited or underexploited behind pipe or deeper productive zones.

The joint venture will acquire a portfolio of operated, long-life producing wellbores with upside that can be unlocked through low-cost, low-risk workovers. The companies aim to build out this portfolio at a low point in the commodity price cycle and then add value through operational execution.

The ultimate objective is to grow this asset base to complement our existing asset base and leasehold acreage within the SWISH AOI and to increase both operating cashflows and reserves.

Work has commenced on the joint venture, with the Black Mesa Energy team analysing data from within the focus area to refine and identify acquisition opportunities.

The team has acquired, analysed and interpreted comprehensive data sets covering past and current production, geology, reservoir characteristics, wireline and mud logs, drill stem tests, drill core and 2-D seismic. This data and analysis is being used to refine and target opportunities and discussions have already commenced on several targets.

The Companies look forward to keeping their shareholders and the market updated as we successfully execute on the Orion Project objectives, that will see our respective asset portfolios enhanced, cashflows increased and shareholder value added in the near term.