Brookside Energy Limited (Brookside or the Company) is pleased to announce that the operator has commenced moving equipment on location ahead of the commencement of drilling operations within Brookside's STACK Play RA Minerlas Royalty Acreage in Blaine County, Oklahoma.
Continental Resources (NYSE:CLR) is operating1 the Ike #1-20-17 well, which is an extended reach horizontal well targeting the Meramec formation (the target formation) in the highly productive STACK play which is now considered to be one of the best development plays in North America.
The well is expected to be drilled to a total measured depth of ~22,393 feet in an area were the Meramec is up to 450 feet thick with excellent reservoir qualities. Importantly, the well is being drilled within the Company's RA Minerlas Royalty Acreage and as such the Company will receive its share of revenue from the well, with no capital (for drilling and completion costs) or operating expenses associated with production.
The Company is pleased that development is now underway within the RA Minerals Royalty Acreage. Continental Resources is the number one operator in the STACK Play with 11 rigs operating and is leading the other operators in terms of both spacing orders and new drilling permits.
Continental Resources is having enormous success in the STACK, with the recently completed Ludwig increased density test delivering outstanding results. The Ludwig test (Continental Resource's first STACK density test) flowed at a combined peak 24? hour rate of 21,354 Boe per day (70% oil). The seven new Meramec wells in this unit had average peak 24? hour rates of 2,653 Boe per day (70% oil), while the original Ludwig well achieved a 24? hour rate of 2,782 Boe per day (76% oil) with cumulative production of 298 MBoe over 338 days.
Commenting on this announcement Brookside's Managing Director David Prentice said:
'We are delighted to see initial development underway within the RA Minerals Royalty Acreage package. The economics in this part of the play are excellent with successful increased drilling density pilots capable of delivering further upside to the currently modelled revenue stream. The Board is very pleased that the strategy we've been pursuing to move quickly and capitalize on a short window in which to accumulate high quality acres in this high-margin repeatable resource play (now considered to be one of the best development plays in North America) is progressing well. The commencement of drilling operations on this well (Ike #1-20-17XH) and the Strack 1-2-11XH well (operated by Marathon Oil) is a significant milestone for our company.'