BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2017

Sep 12, 2017

Brookside Energy Limited ACN 108 787 720

NEWS RELEASE 13 September 2017

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Brookside Boosts Acreage, Reaches Initial 1,280acre Target in world-class Anadarko Basin

Perth, Western Australia – 13 September 2017 - Brookside Energy Limited ( ASX: BRK ) ( Brookside or the Company ) is pleased to provide a further update on its successful leasing and acquisition activities across the world-class Anadarko Basin plays in Oklahoma, US ( Anadarko Basin ).

Highlights

• Further leasing success as Working Interest leasehold acres reaches initial target of ~1,280 acres[i] .

• Continuing to successfully target up-dip liquids rich ‘core areas’ along the Anadarko Basin margin.

• Average Working Interest per development unit climbs to ~5.4%.

• Undeveloped acreage values continue to increase as the Anadarko Basin plays move through the consolidation phase toward full field development.

• In excess of 100 rigs operating across the Anadarko Basin plays with an estimated ~US$3.5 billion per annum in drilling and completion capital being deployed.

Brookside, through the efforts of its partner and manager of US operations Black Mesa Production, LLC ( Black Mesa ), is continuing to rapidly increase the Working Interest acreage position in the world-class Anadarko Basin plays.

The ongoing leasing campaign has delivered further success with the Company reaching its initial target of 1,280 Working Interest leasehold acres. This increase in holdings has been achieved in a highly competitive environment and importantly our team has maintained its disciplined approach, exclusively targeting acreage in up-dip liquids-rich ‘core areas’ along the Anadarko Basin margin.

The Company’s total Anadarko Basin holdings now stand at approximately 1,380 acres[ii] (inclusive of the previously announced RA Minerals Royalty Acreage which is currently being developed by NYSE listed independent, Continental Resources, Inc.).

This latest surge in leasing success has also resulted in a significant increase in the Company’s average Working Interest per development unit (640 or 1,280 acre sections), which has now climbed to approximately 5.4%.

Commenting on this latest success, Brookside’s Managing Director, David Prentice said, “The Anadarko Basin plays in Oklahoma have risen to the forefront of the US on-shore resource plays. This has been driven by the significant merger and acquisition activity of 2016, (US$3.8 billion in transaction value) transitioning in 2017 through the consolidation phase toward full-field development.

“We estimate that there are currently 100 rigs operating across the Anadarko Basin plays. Assuming average drilling and completion costs of ~US$9.0 million per horizontal well and cycle times of 90 to 120 days (spud to first sales), then in excess of US$3.5 billion in drilling and completion capital is being deployed annually in these plays”.

Mr. Prentice, further commented, “Securing acreage in the core of these plays requires specialist knowledge of the regions geology, reservoir characteristics and Oklahoma land systems. We are very pleased that we are continuing to build on our position in these world-class plays particularly given the upward momentum in undeveloped acreage values.

“We note last months auction in Blaine County, Oklahoma where undeveloped acreage closed at approximately US$19,000 per acre and we look forward to updating the market with further successes in the coming weeks”.

- ENDS -

For further information, contact:

Loren King Director and Secretary

Brookside Energy Limited Tel: (+61 8) 6489 1600 loren@brookside-energy.com.au

FORWARD-LOOKING STATEMENTS AND OTHER DISCLAIMERS

This announcement may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of Brookside Energy Limited (“Brookside Energy” or “the Company”). These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Brookside Energy does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

This announcement does not constitute investment advice. Neither this announcement nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. Shareholders should not rely on this announcement. This announcement does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this announcement are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

The information set out in this announcement does not purport to be all-inclusive or to contain all the information, which its recipients may require in order to make an informed assessment of Brookside Energy. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this announcement.

To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from this announcement arising out of negligence or otherwise is accepted.

ABOUT BROOKSIDE ENERGY LIMITED

Brookside is an Australian publicly held company listed on the Australian Securities Exchange (ASX: BRK). The Company was established in 2004 and first listed via an Initial Public Offering in October 2005. The Company has established deep and valued relationships in the oil and gas sector over the last 10 years through its successful activities in the oil and gas sector focused on the mid-continent region of the United States. Brookside’s goal is to build value per share through a disciplined portfolio approach to the acquisition and development of producing oil and gas assets and the leasing and development of acreage opportunities.

Web http://www.brookside-energy.com.au

ABOUT BLACK MESA PRODUCTION LLC

Black Mesa is an Oklahoma domiciled limited liability company established for the purpose of identifying and exploiting opportunities in the upstream oil and gas sector on-shore in the United States. Black Mesa was capitalized via an agreement between the Tulsa Equity Group, BRK Oklahoma (a wholly owned subsidiary of Brookside Energy Limited) and the Incentive Members of Black Mesa. Black Mesa is executing a returns-based, disciplined strategy directed at the acquisition of producing properties, lower-risk development drilling opportunities and larger scale entry level acreage plays/concepts. Black Mesa’s is leveraging the extensive experience of its executive team and its Board with the latest technology and data sets that are available to identfy and evaluate opportunities.

Web http://www.blkmesa.com

GLOSSARY

BOE Barrels of Oil Equivalent EUR Estimated Ultimate Recovery PDP Proved Developing Producing Reserves PUD Proved Undeveloped Reserves Type Curve Representative production profile of a well for a specific play Working Interest Percentage of ownership in a lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working Interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit.

i Working Interest acreage acquired pursuant to the Drilling Program Agreement between BRK Oklahoma and Black Mesa.

ii Includes Working Interest acreage acquired pursuant to the Drilling Program Agreement between BRK Oklahoma and Black Mesa; and the RA Minerals Royalty Acreage acquired pursuant to the Acquisition Program Agreement between BRK Oklahoma and Black Mesa.