BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2018

Apr 18, 2018

Brookside Energy Limited ACN 108 787 720

NEWS RELEASE April 19, 2018

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Step Change Growth Opportunity Unfolding World-class SCOOP Play in Oklahoma

Perth, Western Australia – April 19, 2018 - Brookside Energy Limited ( ASX: BRK ) ( Brookside or the Company ) is pleased to provide an update on its on-going leasing and acquisition efforts in the Anadarko Basin plays in Oklahoma, US.

Highlights

• Up to 8,000 acres already identified within a ~35,000-acre Area of Interest (AOI) in the world-class SCOOP Play

• Leasing currently underway with the opportunity to establish an operated position in ten drilling units in southern SCOOP (“SWISH”)

• Target reservoirs (Woodford Shale and Sycamore Lime) are currently being successfully exploited in the area by tier-one Independents using modern horizontal drilling and completion techniques

• Step change growth opportunity identified with potential to generate an additional >US$135million in Proved Undeveloped (PUD) reserve value for Brookside

• Excellent single well economics and Estimated Ultimate Recoveries (EUR’s) provide catalysts for very significant per-acre value growth

Background

Brookside, through the efforts of its partner and manager of US operations, Black Mesa Production, LLC ( Black Mesa ) has identified an ~8,000 acre “operated position” within an AOI that includes at least 10 drilling units (with unit sizes ranging from 320 acres to 1,280 acres) in SCOOP. This leasing AOI has been named “SWISH”. The world-class SCOOP Play is located in south-western Oklahoma on the eastern margin of the Anadarko Basin.

Leasing is currently underway and the Company has so far leased approximately 10% of the ~8,000 acres identified within the AOI.

Analysis of regional geology, wireline logs, production data, and recent horizontal drilling and completion activity was used by Black Mesa to focus in on potential “sweet spots” within the AOI, where thick (greater than 300 feet) reservoir quality Woodford Shale and Sycamore Lime can be mapped.

The Woodford Shale can be mapped continuously through the AOI with gross thicknesses ranging from 340 feet to 500 feet. Wireline logs show good resistivity and porosity throughout the reservoir, noting that the Woodford Shale is recognised as the organic rich, oil and gas prone source rock for the entire Anadarko Basin.

The Sycamore Lime (which sits directly above and in contact with the Woodford Shale) is a conventional tight limestone reservoir that has been exploited extensively by vertical drilling over several decades. Sycamore thicknesses range from 320 feet to greater than 380 feet. Again, wireline logs show good resistivity and porosities ranging from 6% to 15%. The Middle Sycamore is a horizontal target in its own right (in areas where depletion is not complete) while the tighter, lower Sycamore likely has additional reserves that may be accessed via a horizontal Woodford Shale completion.

Reservoir Properties

	Woodford Shale	Sycamore Lime
Depth(feet)	7,500 to 9,500	7,000 to 9,000
Temperature	140to 160F	140to 160F
Pressure	3,300 to 4,300 PSI	3,100 to 4,000 PSI
Total Organic Content(TOC)	6%	-
Thickness(feet)	200 to 400	200 to 300
Porosity	6%	6%- 15%
Water Saturation(WS)	20%	20%

Type Well EUR Parameters and Half Cycle Unrisked Economics

As outlined above, Black Mesa has completed an extensive review of regional geology as well as wireline logs, production performance analysis, and recent horizontal drilling and completion activity for analogue wells adjacent to and within the AOI to prepare estimates of reservoir properties, EUR’s and Unrisked Economics for both the Woodford Shale and Sycamore Lime type wells. Black Mesa used deterministic methods to prepare the estimates set out in the following table.

Description	Unit	Woodford Shale	Sycamore Lime
Estimated Total Petroleum Initially-in-placeper Unit1	MBOE	22,000	22,500
EUR
Oil	BBLs	400,000	500,000
Gas	MCF	4,000,000	10,000,000
BOE		1,066,000	2,166,000
CWC	US$	6,500,000	8,200,000
Lateral Length	Feet	4,800	7,200
ROR	%	36%	50%
PV10	US$	4,165,000	8,368,000
Payout	Years	2.3	1.8

Notes and General Assumptions:

1. Unit refers to a single 640-acre spacing unit

2. Assumes 100% Working Interest and 75% Net Revenue Interest

3. Pricing assumptions are WTI US$55/BBL and HH US$3.00/MCF flat

Black Mesa has estimated that the SWISH opportunity has the potential to generate an additional >US$135million in PUD value for Brookside when leasing is completed (assuming the full 8,000 acres is successfully leased) and the acreage is held by production (i.e. an initial well is drilled and completed in each drilling unit). This estimate of potential PUD value is based on the Type Well EUR parameters and Half Cycle Unrisked Economics outlined above and assumes a total of 42 Woodford PUD locations and a further 7 Sycamore Lime PUD locations.

Qualified Petroleum Reserves and Resources Evaluator Statement

The petroleum resources information in this announcement is based on, and fairly represents, information and supporting documentation compiled by technical employees of Black Mesa and has been reviewed by Mr John Schumer, Vice President of Reservoir Engineering for Black Mesa. Mr Schumer holds a B.S. Geological Engineering from the University of North Dakota, is a Petroleum Engineer with over 18 years of experience in reservoir engineering, prospect generation and evaluations, prospect and project level resource and risk estimation and is a member of the Society of Petroleum Engineers. Mr Schumer has consented to the inclusion of the petroleum resources information in this announcement in the form and context in which it appears.

Additional Disclosure – Reporting on Oil and Gas Activities

The disclosure of estimated total petroleum initially-in-place and estimated ultimate recoveries in this announcement is based on data obtained from proprietary and public data sources which has been evaluated by Black Mesa. It should be noted that at present Brookside has not engaged an independent third party to prepare a report on the; estimated petroleum reserves; estimated contingent resources; or estimated prospective resources; contained within the SWISH AOI; and as such the estimated total petroleum initially-in-place and estimated ultimate recoveries contained in this announcement should not be considered to be estimates of petroleum reserves or contingent/prospective resources.

Commenting on the announcement, Brookside Managing Director David Prentice said; “We are very pleased to have positioned ourselves to take advantage of this company making opportunity in the SCOOP Play. The excellent single well economics and EUR’s for both the Woodford Shale and Sycamore type wells will provide excellent catalysts for very significant per-acre value growth as the acreage is developed and results from the large independents active in the area come to hand.”

- 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 capitalised 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

BBL Barrel BOE Barrels of Oil Equivalent CWC Completed Well Cost EUR Estimated Ultimate Recovery Half Cycle Includes drilling, completion and Tie-In costs for a well and does not include land acquisition, general and administration or financing costs MBOE Million Barrels of Oil Equivalent MCF Thousand Cubic Feet of Gas PUD Proved Undeveloped Reserves Type Curve/Well 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 WTI West Texas Intermediate