BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2018

Apr 5, 2018

Brookside Energy Limited ACN 108 787 720

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NEWS RELEASE April 6, 2018
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Funding Secured for SCOOP Play Acquisitions Step Change Growth Opportunity Identified

Perth, Western Australia – April 6, 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

• Commitments received from new institutional and sophisticated investors for a heavily oversubscribed A$3.16 million placement

• Additional funding will enable Brookside to expand and accelerate its leasing and acquisition activities in the world-class SCOOP Play

• ~8,000 acre ‘operated position’ in ten drilling units already identified within an Area of Interest ( AOI ) in southern SCOOP (SWISH)

• Target reservoirs already being successfully exploited by tier-one Independent’s operating on adjacent acreage

• Step change growth opportunity identified with potential to generate substantial Proved Undeveloped (PUD) reserve value for Brookside

Brookside is pleased to advise that it has received commitments from existing shareholders and new institutional and sophisticated investors for a placement of 197,500,000 fully paid ordinary shares at an issue price of A$0.016 per share ( Share ), with a 1 for 1 free attaching listed option (exercisable at A$0.02 on or before 31 December 2018)( Option ), to raise A$3,160,000 before costs ( Placement ).

Cicero Advisory Services Pty Ltd ( Cicero ) acted as Lead Manager and bookrunner to the Placement, which was heavily oversubscribed and has introduced new institutional and sophisticated investors to Brookside’s share register. The new Shares will be issued under the Company’s current placement capacity pursuant to ASX Listing Rule 7.1 (subject to satisfying the conditions to its use) and the Company will seek shareholder approval for the issue of the free attaching Options at the upcoming Annual General meeting, to be held prior to the end of May 2018.

This additional funding will enable Brookside to expand and accelerate its leasing activities in the world-class SCOOP Play in the Anadarko Basin, Oklahoma.

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 southern SCOOP. This leasing AOI has been named ‘SWISH’.

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The SWISH opportunity was identified by Black Mesa, following a review of the reservoir characteristics and productivity of the producing non-operated Working Interest wells that the Company has participated in to date in the STACK Play as well as data from numerous wells drilled throughout the Anadarko Basin.

The world-class STACK and SCOOP Plays are located in south central Oklahoma, targeting the liquids-rich fairways of the eastern margin of the prolific Anadarko Basin.

The target reservoirs in SWISH, include the 340’ to 500’ thick Woodford Shale (the organic rich, oil and gas prone source rock for entire Anadarko Basin) and the 320’ to > 380’ thick Sycamore Limestone that lies directly above the Woodford Shale. Both of these reservoirs are already being successfully exploited by tier-one operators that are actively developing adjacent acreage. These operators include NYSE listed large independments Newfield Exploration (NYSE: NFX) and Continental Resources (NYSE: CLR).

SWISH is a step change opportunity for Brookside, with the potential to generate substantial PUD value when leasing is completed and the acreage is held by production (i.e. an initial well is drilled and completed in each drilling unit).

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

“We are pleased with the platform we have created from our foray into the STACK Play, where in a short period of time, we have secured a tier-one acreage position, succesfully particpated in 14 horizontal wells and have already seen acreage values increase significantly. The successful execution of this part of our plan has given us great confidence to take what we have learned as a non-operating particpant in STACK and apply that in SCOOP, specifically in our very exciting SWISH AOI.“

“This is a Company making oppportunity and we are delighted and thankful for the support we received for this placement from both our existing shareholders and welcome our new investors to our registry. On behalf of the Company, I would like to thank Cicero Advisory for conducting such a successful process and we are a very much looking forward to delivering on this next phase of growth for the Company“.

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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 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

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