BROOKSIDE ENERGY LIMITED — Earnings Release 2019

Aug 14, 2019

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NEWS RELEASE

August 15, 2019

STACK Play Continues to Deliver Outstanding Results Highlighting the Quality of Brookside’s Non-Operated Acreage

Perth, Western Australia – August 15, 2019 - Brookside Energy Limited ( ASX: BRK ) ( Brookside or the Company ) is pleased to provide an update on production results for its nonoperated development activities within the Company’s STACK Play acreage in the world-class Anadarko Basin, Oklahoma.

Highlights

• Continental Resources, Inc. (NYSE:CLR) operated Henry Federal 1-8-5XH well (Brookside 7.27% Working Interest) has been successfully drilled, completed and turned to sales

• This horizontal well producing from the Meramec formation delivered an initial production rate (IP24) of 1,319 barrels of oil equivalent (65% oil)

• These initial results are very encouraging and are expected to support ultimate recoveries at the upper end of the range of estimates for the Company’s STACK Play acreage

• Well has now been online for almost three months and Brookside looks forward to providing further detail on sustained production results and cashflows in the third-quarter

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

“While our focus more recently has been on the significant progress, we are making in our SWISH AOI in the SCOOP Play, it is very pleasing to see outstanding results continuing to emerge from our STACK Play ‘pilot study’ acreage.

“The opportunity that comes from this acreage position, in terms of our ability to choose to monetise part of this asset through participation in development and receive the cashflow is exciting and is an important leg to our value proposition.

”It also highlights the strength of our business model that enables us to realise value at various points along the oil and gas development path, from acreage sales or swaps early in the cycle to participation in development and cashflow and ultimately to a sale when the full value of the acreage positions reserve potential may be realised.”

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Background

The Company is pleased to announce initial production results from the Continental Resources, Inc. (NYSE:CLR) operated Henry Federal 1-8-5XH well that was recently drilled within the Company’s STACK Play acreage in the world-class Anadarko Basin, Oklahoma.

Brookside has a 7.27% Working Interest in this extended lateral horizontal well that is producing from the Meramec formation at a depth of approximately 11,200 feet. The well spudded in midJanuary 2019 and was subsequently completed for production and turned to sales in late May 2019.

Initial production (IP24) of 1,319 barrels of oil equivalent per day (65% oil) was reported for this well, comprising 861 barrels of oil and 2,747 Mcf. These rates were achieved via natural flow through a 38/64-inch choke.

These initial results are very encouraging and are expected to support ultimate recoveries at the upper end of the range of estimates for the Company’s STACK Play acreage. The well has now been online for almost three months and Brookside looks forwards to providing further detail on sustained production results and cashflows in the third-quarter

Pre-Drill Estimates

The following table sets out some of the key technical parameters used to describe the development potential of the Henry Federal DSU.

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- ENDS -

For further information, contact:

David Prentice Managing Director Brookside Energy Limited Tel: (+61 8) 6489 1600 - david@brookside energy.com.au

Media: Paul Ryan Director Citadel-MAGNUS Tel: ( +61 8) 6160 4900 pryan@citadelmagnus.com

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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 identify and evaluate opportunities.

Web http://www.blkmesa.com

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GLOSSARY

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APO WI After pay out working interest
AFIT After Federal Income Tax
AOI Area of Interest
BFIT Before Federal Income Tax
BOE Barrels of Oil Equivalent
COPAS Council of Petroleum Accountants Societies
Development Unit Development Unit or drilling spacing unit is the geographical area in which an initial oil and/or gas
or DSU 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.
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 Producing Reserves
Pooling The pooling agreements facilitate the development of oil and gas wells and drilling units. These
Agreements binding pooling agreements are between the Company and the operators as specified in Appendix
1.
PUD Proved Undeveloped Reserves
Reserve These reserve categories are totalled up by the measures 1P, 2P, and 3P, which are inclusive of all
Categories 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 AND probable AND possible.
STACK S ooner T rend A nadarko Basin C anadian and K ingfisher Counties – oil and gas play in the
Anadarko Basin Oklahoma
SCOOP S outh C entral O klahoma O il P rovince - oil and gas play in 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, producing and operating a well or unit
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