BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2021

Jul 20, 2021

==> picture [456 x 85] intentionally omitted <==

NEWS RELEASE

21 Jul 2021 y

Jewell Well Completion Operations Tier-one Service Company Appointed

Perth, Western Australia – 21 July 2021 – Brookside Energy Limited (ASX: BRK) (FSE: 8F3) ( Brookside or the Company ) is pleased to provide shareholders and investors with an update on the completion of the high-impact Jewell 13-12-1S-3W SXH1 well ( Jewell Well ) in Brookside’s SWISH Area of Interest ( AOI ) in the world-class Anadarko Basin (Figure 3).

HIGHLIGHTS

• Liberty Oilfield Services ( Liberty ), a tier-one North American oilfield services company, has been appointed to conduct the completion operations on the Jewell Well

• Liberty is a first mover in driving an ESG conscious approach to well completions

• Equipment and personnel are expected to be mobilised to the Jewell Well location by the end of July with completion operations to commence shortly thereafter

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

“We are delighted that we have been able to secure the services of Liberty to complete the Jewell well, they are a leading oilfield services company that shares the values that Brookside and Black Mesa hold around safe and efficient operations and employee alignment to deliver the very best results possible.

“Liberty’s experience in the mid-con region, focus on ESG principles and commitment to excellence will help to ensure that we get the very best out of the Jewell well as we complete this last important step in bringing this much anticipated well online and turning it to sales.”

==> picture [415 x 227] intentionally omitted <==

Figure 1. A Liberty Oilfield Services completions crew (Image courtesy of Liberty Oilfield Services)

==> picture [67 x 70] intentionally omitted <==

Brookside is pleased to announce that Black Mesa Energy, LLC ( Black Mesa ) has executed a Master Services Agreement with Denver based Liberty Oilfield Services ( Liberty ), a leading North American oilfield services company. The contract is to supply and operate the equipment and personnel for the completion of the Jewell Well, under the supervision of the Black Mesa team.

Completion equipment and personnel are expected to be mobilised to site by the end of July to kick-off completion operations, with production and sales to follow soon after. The Liberty crew is currently completing a job on a nearby well for a large successful, Tulsa based private E&P company prior to moving to the Jewell location.

Liberty is a leading North American oilfield services company, a first mover in driving an ESG conscious approach to well completions with the largest low-emission fleet in the market. Every Liberty new build fleet since 2013 has been low emission. Additionally, in 2016 Liberty debuted the Quiet Fleet, with sound reduction features that make the Quiet Fleet three times quieter than a traditional completions fleet.

In December 2020, Liberty acquired the completions business of Houston-based oilfield giant Schlumberger Ltd ( Schlumberger ) in an all-stock merger valued at US$448 million with Schlumberger becoming 37% owner of Liberty. The deal made Liberty the second-largest North American oil fields services business.

==> picture [447 x 400] intentionally omitted <==

Figure 2: Separators set and plumbed-in on the Jewell Location in Carter County, Oklahoma

==> picture [67 x 70] intentionally omitted <==

Background

Brookside is developing its “core of the core” acreage position in the SWISH AOI located in the highly sought-after Sycamore-Woodford trend in the southern SCOOP Play in the world-class Anadarko Basin. Brookside has embarked on a potential 5-year, 20-plus well development drilling program across its three operated development areas / DSUs (Jewell, Flames, Rangers) that the Company controls in the SWISH AOI to develop a conservatively estimated 11,606,000 net BOE Prospective Resource[1] (best estimate, unrisked).

Initial wells drilled in the SWISH AOI will be targeting one of two primary producing formations in the SWISH AOI, the Sycamore formation. The Sycamore formation continues to deliver outstanding sustained productivity in nearby offsetting wells. To date, the Casillas Operating, LLC. operated Flash 1-8-5MXH well (located ~3-miles west of the Jewell DSU) has produced ~580,000 BOE in approximately 19-months, considerably higher than Brookside’s conservative estimate for the Jewell Well (see Figure 4).[ 2]

Future wells will also target the Woodford formation, which just like the Sycamore formation continues to deliver outstanding sustained productivity in nearby offsetting wells. To date, the Continental Resources Inc. operated Courbet 1-27-22XHW well (located ~1-mile southwest of the Jewell DSU) has produced ~430,000 BOE in approximately 14-months.[3] As can be seen in Figure 5, the production rate of the Courbet well is considerably higher than BRK’s conservative estimate for the Jewell Well.

==> picture [461 x 331] intentionally omitted <==

Figure 3: SWISH activity map showing the location of Brookside DSUs

1Refer to the Company’s ASX release of 17 November 2020 for further information in respect of the prospective resource. There has been no material change to the prospective resource since that release.

2 Note - Brookside does not hold an interest in the Flash 1-8-5MXH well and these production results are presented for reference only.

3 Note - Brookside does not hold an interest in the Courbet 1-27-22XHW well and these production results are presented for reference only.

==> picture [67 x 70] intentionally omitted <==

==> picture [447 x 229] intentionally omitted <==

Figure 4: Flash Well cumulative oil production to date (barrels of oil) versus time (month) compared to the Jewell Well oil production type curve. Brookside has been very conservative in its production estimate for the Jewell Well producing from the Sycamore formation.

==> picture [447 x 225] intentionally omitted <==

Figure 5: Courbet Well cumulative oil production to date (barrels of oil) versus time (month) compared to the Jewell Well oil production type curve. Brookside has been very conservative in its production estimate for the Jewell Well producing from the Woodford formation.

– ENDS –

==> picture [67 x 70] intentionally omitted <==

Authority:

This announcement has been authorised for release by the Board of Directors of Brookside Energy Limited

For further information, contact:

or further information, contact:
David Prentice	Omar Taheri
Managing Director	Founder
Brookside Energy Limited	SparkPlus
Tel: (+61 8) 6489 1600	Tel: +65 8111 7634
david@brookside-energy.com.au	omar@sparkplus.org
Gracjan Lambert	Eliza Gee
Executive General Manager Commercial	Director
Brookside Energy Limited	ASX Investor
Tel: (+61 8) 6489 1600	Tel: +61 432 166 431
gl@brookside-energy.com.au	eliza@asxinvestor.com.au

==> picture [67 x 70] intentionally omitted <==

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 Energy is a Perth-based ASX, and Frankfurt listed company that generates shareholder value by developing oil and gas plays in the United States, specifically the Anadarko Basin in Oklahoma. The Anadarko Basin is a proven Tier One oil and gas development province with significant existing oil and gas gathering and transportation infrastructure, a competitive and highly experienced oil and gas service sector, and a favourable regulatory environment. Brookside is executing a “Real Estate Development” approach to acquiring prospective acreage in the Anadarko Basin and adding value to it by consolidating leases and proving up oil and gas reserves. The Company then has the option of selling the revalued acreage or maintaining a producing interest. The Company is now set to scale-up its activities and asset base significantly with its operated- interests in the SWISH AOI. Web http://brookside-energy.com.au

ABOUT BLACK MESA ENERGY, LLC

Black Mesa Energy , a Brookside Energy controlled subsidiary, is a Tulsa-based oil & gas exploration and production company focused on profitable development of petroleum properties located in the Mid-Continent oil province of the United States. Our lean and highly specialized technical and operations team is committed to providing attractive returns for our investors and shareholders by generating and drilling high quality oil and gas prospects. The founders of Black Mesa have worked together for over 30 years at companies they previously founded, including Medallion Petroleum, InterCoast Energy and Brighton Energy. Over the course of their careers, the Black Mesa team has drilled hundreds of horizontal wells and thousands of vertical wells in numerous mid-continent oil and gas basins. In addition to the financial backing from the Black Mesa shareholders, Black Mesa partners with outside investors on larger-scale projects by offering non-operated direct working interest participation. Web http://www.blkmesa.com

==> picture [67 x 70] intentionally omitted <==

GLOSSARY

GLOSSARY
APO WI	Afterpayout workinginterest
AFIT	After Federal Income Tax
AOI	Area of Interest
BBL	Barrel
BFIT	Before Federal Income Tax
BOE	Barrels of Oil Equivalent
COPAS	Council of Petroleum Accountants Societies
Development Unit or DSU	Development Unit or drilling 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 Corporation Commission.
Force Pooled	The Oklahoma Corporation Commission is authorized to establish well spacing and drilling units covering any common source of supply of hydrocarbons, or any prospective common source of supply. Once the unit is established, the Commission can force pool the interests of all the owners who own interests in that unit and who have not voluntarily joined in the development of that unit.
MBOE	1,000 barrels of oil equivalent
Mcf	1,000 cubic feet
MMBOE	1,000,000 barrels of oil equivalent
NPV10	The netpresent value of future net revenue,before income taxes and usinga discount rate of 10%.
NRI	Net Revenue Interest
PDP	Proved Developed ProducingReserves
Pooling Agreements	The pooling agreements facilitate the development of oil and gas wells and drilling units. These binding poolingagreements are between the Companyand the operators
Prospective Resource	Prospective Resources are those quantities of petroleum which are estimated, on a given date, to be potentiallyrecoverable from undiscovered accumulations.
PUD	Proved Undeveloped Reserves
Reserve Categories	These reserve categories are totalled up by the measures 1P, 2P, and 3P, which are inclusive of all reserve 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.
STACK	Sooner Trend Anadarko Basin Canadian and Kingfisher Counties – oil and gas play in the Anadarko Basin Oklahoma
SCOOP	South Central Oklahoma Oil Province - oil andgasplayin the Anadarko Basin Oklahoma
SWISH AOI	Description of Brookside’s Area of Interest in the SCOOP 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