Brookside Energy starts constructing production facility at Jewell Well operation in Anadarko Basin

Brookside Energy Ltd’s (ASX:BRK) (FSE:8F3) production facilities are now under construction at the high-impact Jewell Well operation in Oklahoma's world-class Anadarko Basin. In a market announcement, the US-focused ASX-lister revealed that operations at the oil and gas asset were proceeding on schedule, safely and without incident. Black Mesa, Brookside’s controlled subsidiary, operates the Jewell Well within the SWISH Area of Interest (AOI), a key portion of the Anadarko Basin. Now the Jewell Well has been drilled with production casing, the parties are focused on constructing and installing surface production facilities. Ultimately, Brookside hopes to connect the well to a nearby gas sales line. Preparing for production Brookside Energy managing director David Prentice said: “This is a very, very exciting time for Brookside, its shareholders, the Black Mesa team and our other stakeholders, with the Jewell well successfully drilled and production casing run. “The team is now working hard to construct and commission the production facilities so that we are ready to commence production and deliver oil and gas to sales as soon as the completion operations are finished. “The timing appears to be perfect with WTI touching $72 per barrel and natural gas hitting $3.20.” Production facility construction Now the Jewell Well has been drilled, work is underway to create facilities that support future oil and gas production. So far, work has commenced on surface production facilities, including the tank battery, oil and gas separators. Specifically, this includes a 48-inch, 10-foot horizontal three-phase heated separator, a 6-inch, 20-foot vertical heater treater and a 30-inch, 10-foot vertical separator. To provide adequate tankage, Brookside will construct six 400-barrel storage tanks within a steel containment dyke. Finally, a 6-inch, 2,700-foot gas line will connect the Jewell Well to a nearby gas sales line. The development comes after the Latshaw Drilling Company drilled the Jewell Well, targeting the Sycamore formation to a depth of around 7,500 feet. Overall, the well was drilled to a total measured depth of roughly 14,100 feet. To prepare it for the next phase of development, the well has been cased with production tubing, which will be perforated and treated to allow oil and gas production. The Latshaw Drilling Rig 14 has been demobilsed and is currently stacked on the Jewell Well location in Carter County. Inaugural well Importantly, preparation for production at the Jewell Well represents an important first step in Brookside’s broader drilling program. In fact, the Jewell Well will be the first Brookside-operated well to be drilled and completed in the Jewell drill spacing unit (DSU) within the SWISH AOI. More broadly, it’s the first in a potential five-year, 20-plus well development drilling program across three operated DSUs that Brookside controls within the SWISH AOI. The Jewell, Flames and Rangers DSUs will be developed as part of a conservatively estimated 11,606,000 net barrels of oil equivalent (BOE) prospective resource. Promisingly, other producing wells in close proximity give Brookside hope that Jewell will be a strong producer. To date, a Casillas Operating, LLC-operated well, around three miles west of the Jewell DSU, has produced around 580,000 BOE over 19 months - considerably higher than Brookside’s conservative estimate for the Jewell Well. In addition, a Continental Resources Inc-operated well, round one mile southwest of the Jewell DSU, has produced roughly 430,000 BOE in approximately 14 months.