BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2018

Oct 3, 2018

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NEWS RELEASE

October 4, 2018

Woodford Shale Delivers in SCOOP

Strong Initial Rates Further Validate SCOOP Acreage Strategy

Perth, Western Australia – October 4, 2018 - Brookside Energy Limited ( ASX: BRK ) ( Brookside or the Company ) is pleased to provide an update on its activities in the World-Class Anadarko Basin plays in Oklahoma, US.

Highlights

• Initial production rates successfully established in the Bullard 1-18/7H well.

• Largest Working Interest well drilled to date at 20.57%.[i, ii]

• Well achieved 1,828 BOE/day (IP24) (67% oil) and 1,479 BOE/day (IP30) producing from the Woodford Shale in the SCOOP Play.

• The well has produced ~73,000 BOE (69% oil) in its first ~60-days of production.

• Initial production results provide further confirmation of the productivity and reserve potential of the Woodford Shale in the SCOOP Play.

• Results from this “parent well” will enable Brookside to book significant proved undeveloped reserves in this development unit.

• Important data point for the Woodford Shale further validates the SWISH acreage acquisition strategy were the Company is targeting both the Sycamore and Woodford Formations.

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

“We are again delighted to present the early production results from a new well to our shareholders and investors.

“These are very strong initial production results and we are thrilled that the Woodford Shale in this well is delivering great early indications of its productivity and reserve potential.

“The Bullard well is located in close proximity to our SWISH AOI and it provides us with an early look at what we can expect there when development gets underway.

“The Woodford, together with the Sycamore are central to the value creation model for SWISH and it is wonderful to have achieved this milestone so early in the evolution of the SWISH story.”

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Background

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

The most recent well to commence production is located within the Company’s SCOOP Play focus area (see Fig. 1.).

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Figure 1.

The Rimrock Resource Operating, LLC. operated Bullard #1-18/7H well (Brookside 20.57% Working Interest) achieved 1,828 BOE/day (IP24) (67% oil) and an IP30 of 1,479 BOE/day.

The well has produced approximately 73,000 BOE (69% oil) in its first ~60-days of production (~50,000 barrels of oil and 136,000 Mcf gas). See Figure 2. below.

These results were achieved from a 7,500 foot lateral producing from the Woodford Shale formation at a depth of approximately 8,050 feet.

Significantly this well is located adjacent to (within approximately 5-miles) 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 .

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The results achieved in this “parent well” will also enable the Company to book significant proved undeveloped reserves in this development unit, which is located in a part of the SCOOP Play where several of the “tier-one” large independents are already pushing forward with full field development pilots (up to ten wells per unit in some cases).

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Figure 2. Rate/Time Bullard #1-18/7H (BRK WI 20.57%)

The drilling and completion costs associated with this well have been funded outside of the Drilling Joint Venture and 100% of these costs may be recouped in the event that LS Operating, LLC exercises its rights under the previously announced Step-in Agreement[ii] . Under this agreement, LS operating has the option to acquire up to 100% of Brookside’s 20.57% Working Interest in this well, while Brookside retains ownership of the acreage in the development unit and 100% of the proved undeveloped reserves the well creates.

- ENDS -

For further information, contact:

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

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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

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GLOSSARY

**BOE **	Barrels ofOil Equivalent
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 only after an Increased Density Order is issued by the Oklahoma CorporationCommission.
**EUR **	Estimated UltimateRecovery
IP24	Peak rate achieved over a 24-hour period within the first full calendar month from the date of first production
IP30	Initialproduction reportedfor thefirst fullcalendar month from the date of firstproduction
PDP	ProvedDevelopedProducingReserves
**PUD **	Proved UndevelopedReserves
Type Curve	Representative productionprofile ofawell fora 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, producingand operatinga well or uniT

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

ii This well is subject to the previously announced Step-in Agreement, between LS Operating, LLC ( LSO ) (a wholly owned subsidiary of Lone Star Energy Limited) and BRK Oklahoma Holdings, LLC (a wholly owned subsidiary of BRK). Consistent with the Company’s acreage acquisition and re-valuation business model, this agreement (provided the relevant conditions precedent are satisfied) provides BRK with a potential drilling partner to assist with the development of its Anadarko Basin holdings and another valuable source of drilling capital.