BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2018

Dec 17, 2018

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NEWS RELEASE

December 18, 2018

Very Strong “Sustained” Production Results from the Woodford Shale

Perth, Western Australia – December 18, 2018 - Brookside Energy Limited ( ASX: BRK ) ( Brookside or the Company ) is pleased to provide shareholders and investors with an update on production results from the Company’s first Woodford Shale well in the worldclass Anadarko Basin (SCOOP Play) in Oklahoma.

Highlights

• Bullard #1-18-07UWH[i,ii] well has now produced ~110,000 BOE (65% oil) in less than 3-months

• First three months net revenue[iii] estimated to be ~US$850,000 (attributable to Brookside’s 20.57% Working Interest)

• ~43% of drilling and completion capex recovered in just three months

• Woodford Shale well located in the SCOOP Play delivering production results above the Company’s pre-drill estimates

• Continued “sustained” production from this well will drive significant reserve growth beyond the Company’s recently announced Maiden Reserve Report with up to six additional potential well locations defined within this single development unit

• Bullard #1-18-07UWH well located approximately five-miles north of Brookside’s SWISH AOI in southern SCOOP

• Provides another very strong “data point” for the reserve potential of the Woodford Shale in this area and further justification for higher per-acre valuations

Commenting on the announcement, Brookside Managing Director, David Prentice said:

“We are once again very pleased to be able to provide updated production results from one of our most significant non-operated Working Interest wells in the Anadarko Basin in Oklahoma.

The Bullard well continues to perform above our pre-drill expectations flagging the potential for significant additions to the proved reserves recently outlined in our Maiden Reserve Report.

As we scale up our activities in the basin, with higher Working Interests per well and a larger acreage position we see the opportunity for exponential growth in our reserves of oil and gas and ultimately the value of the business.”

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Background

The Company’s non-operated Working Interest wells in the world-class Anadarko Basin plays continue to deliver excellent “sustained” production rates providing further support for the quality of the acreage that Brookside has been able to secure within the Anadarko Basin in Oklahoma.

The Rimrock Resource Operating, LLC. operated Bullard #1-18-07UWH well (Brookside 20.57% Working Interest) has produced approximately 110,000 BOE (65% oil) in less than three months (~71,000 barrels of oil and 236,000 Mcf gas). See Figure 1. below.

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Figure 1. Rate/Time Plot Bullard #1-18-07UWH well

These production results were achieved from a horizontal well bore with a 7,500-foot lateral producing at a depth of approximately 8,050 feet in the “volatile oil window” of the Woodford Shale formation. The well is currently producing full open flow through a 64-inch choke on gas lift.

Net revenue (net to Brookside) from this well for its first three months of production is estimated to be ~US$850,000, with approximately 43% of the Working Interest share of drilling and completion capex recovered in this period.

To date, production from this well has continued to exceed the Company’s pre-drill estimates with continued “sustained” production expected to drive significant reserve growth beyond the Company’s recently announced Maiden Reserve Report. The Company is estimating up to six additional potential well locations within this single 960acre development unit.

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The Bullard #1-18-07UWH well provides another very strong “data point” for the reserve potential of the Woodford Shale in this area and further justification for higher per-acre valuations in the SCOOP Play generally.

Significantly this well is located adjacent to (approximately 5-miles north) the Company’s SWISH AOI, which is the focus of the current leasing campaign. These initial production results provide the Company with further confirmation of the productivity of the Woodford Shale in this part of the SCOOP Play and validate our SWISH acreage acquisition strategy were the Company is targeting both the Sycamore and Woodford Formations .

- 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

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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 identify and evaluate opportunities.

Web http://www.blkmesa.com

GLOSSARY

GLOSSARY
AOI	Area of Interest
APO WI	Afterpayout workinginterest
AFIT	After Federal Income Tax
BFIT	Before Federal Income Tax
BOE	Barrels of Oil Equivalent
COPAS	Council of Petroleum Accountants Societies
Development Unit	Development Unit or spacing unit is the geographical area in which an initial oil and/or gas well is drilled and produced from the geological formation listed in a spacing order. The spacing unit communitizes all interest owners for the purpose of sharing in production from oil and/or gas wells in the unit. A spacing order establishes the size of the unit; names the formations included in the unit; divides the ownership of the unit for the formations into the “royalty interest” and the “working interest”; Only one well can be drilled and completed in each common source of supply. Additional wells may be drilled in a Development Unit, but onlyafter an Increased DensityOrder is issued bythe Oklahoma Corporation Commission.
Mboe	1,000 barrels of oil equivalent
Mcf	1,000 cubic feet
MMboe	1,000,000 barrel of oil equivalent
NPV10	The net present value of future net revenue, before income taxes and using a discount rate of 10%.
PDP	Proved Developed ProducingReserves
Pooling Agreements	The pooling agreements facilitate the development of oil and gas wells and drilling units. These binding pooling agreements are between the Company and the operators as specified in Appendix 1.
PUD	Proved Undeveloped Reserves
Reserve Categories	These reserve categories are totalled up by the measures 1P, 2P, and 3P, which are inclusive of all reserves types: • "1P reserves" = proven reserves (both proved developed reserves + proved undeveloped reserves). • "2P reserves" = 1P (proven reserves) + probable reserves, hence "proved AND probable." • "3P reserves" = the sum of 2P (proven reserves + probable reserves) + possible reserves, all 3Ps "proven ANDprobable ANDpossible.
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

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i Subject to the back-in after payout (25% Working Interest) set out in the Drilling Program Agreement between Black Mesa Production, LLC and BRK Oklahoma Holdings, LLC.

ii This well is subject to the previously announced Step-in Agreement, between LS Operating, LLC (a wholly owened subsidiary of Lone Star Energy Limited (Lone Star)) and BRK Oklahoma Holdings, LLC (a wholly owned subsidiary of BRK). Lone Star will be acquired by Nickleore Limited (to be renamed Stonehorse Energy Limited) (provided a number of conditions precedent are satisfied, including the successful capital raising as set in a Prospectus dated 20 November 2018.

iii Net revenues are after the deduction royalties, production taxes, direct operating costs and required capital expenditures (where applicable) and before the deduction of federal and state income taxes.