The Orion Project offers significant scalability, with the initial focus area extending over 1,100 square kilometres in the Anadarko Basin, covering several historic and currently producing oil and gas fields and many hundreds of vertical wellbores.
() has formed a new joint venture with () called the Orion Project, which aims to take advantage of opportunities to acquire producing oil and gas properties in the world-class Anadarko Basin of Oklahoma, USA.
Orion Project is a 50/50 joint venture between the companies, with Brookside’s subsidiary Black Mesa Energy LLC responsible for identifying, acquiring and operating the properties.
The JV will target natural gas weighted, mature long-life production assets with very low terminal decline and upside that can be unlocked from remedial workover activity and/or unexploited or underexploited behind pipe or deeper productive zones.
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 joint venture will acquire a portfolio of operated, long-life producing wellbores with upside that can be unlocked through low-cost, low-risk workovers with the companies aiming to build out this portfolio at a low point in the commodity price cycle and then add value through operational execution.
“Looking for best opportunities”
Prentice said: “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.”
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 commenced on several targets.
The Anadarko Basin is a proven Tier-One oil and gas development province.
Joint venture structure
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 JV 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.
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…
Read More: Brookside Energy forms joint venture to expand Oklahoma oil & gas portfolio
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