Brookside Energy : Quarterly Activities Report and Appendix 5B - December 2021

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QUARTERLY REPORT	28 January 2022

Fourth Quarter 2021 Activities and Cashflow Report

Perth, Western Australia - 28 January 2022 - Brookside Energy Limited (ASX: BRK) (Brookside or the Company) is pleased to provide the following summary of the Company's activities during the fourth quarter of 2021.

Highlights

• Fourth quarter revenue from sales of A$3,570,000, up 800% quarter on quarter as production and sales from the Jewell Well, our first operated well in the SWISH AOI, were received.
• Cash positive from operations for the quarter with a maiden operating profit of A$2,783,000.
• Average daily production increased 3-fold to 540 BOE per day, net to Brookside's Working Interest and after the deduction of royalties.
• The Company spudded the Rangers Well, its second high-impact operated well in the SWISH AOI. This was the Company's first well in the Rangers DSU.
• The Jewell Well reached a peak rate (IP24) of ~1,800 BOE per day (75% liquids, 25% gas), exceeding pre-drill high estimates.
• Independent of the IP24 rate, a peak oil rate of 973 barrels per day and peak rich gas rate of 3,959 Mcf per day were also achieved.
• The Jewell Well achieved an IP30 of 1,604 BOE per day (30-day average), within a period of measurement covering a combination of production rate growth followed by steady production. This sustained rate was significantly above our pre-drill estimates for the Jewell Well's IP30.
• An IP90 of ~1,570 BOE per day was achieved (~73% liquids) with the Jewell Well production continuing to exceed expectations.

About Brookside Energy Limited

Brookside Energy Limited is an Australian public company listed on the Australian (ASX: BRK), USA

(OTC Pink: RDFEF) and Frankfurt (8F3: FSE) stock exchanges. The Company was founded in 2015, to focus on the mid-continent region of the US, where our deep and valued relationships enable us to work with local communities to ensure sustainable growth and value creation through the safe and efficient development of energy assets. Focused on exploitation not exploration, the Company generates shareholder value through a disciplined portfolio approach to the acquisition and development of oil and gas assets and the leasing and development of acreage opportunities. The Company's US subsidiary and manager of operations, Black Mesa Energy, LLC (Black Mesa), is an experienced mid-continent operator, which identifies opportunities and executes development for Brookside. Our business model effectively assigns risk and provides commercial incentives to maximize value for both parties.

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Corporate and Financial Summary

Share Price (A$)	$0.021	Quarterly Sales1. (A$)	3,570,000
Shares on Issue	~3,384,600,000	Cash (A$)2.	~12,783,000
Options on Issue	~1,613,200,000	Producing Wells	32
Market Capitalisation	~$71,000,000	Production3. (BOE/day)	~540
(A$)

Anadarko Basin Focussed

Anadarko Basin, Oklahoma

The Anadarko Basin is a geologic depositional and structural basin centred in the western part of Oklahoma that is oil and gas rich, and generally well explored (mature). The 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. Recent activity (last six years) has been focussed primarily on two world-class oil and gas plays - STACK and SCOOP. The STACK (Sooner Trend, Anadarko Basin, Canadian and Kingfisher Counties) and SCOOP (South Central Oklahoma Oil Province) Plays are being developed using modern horizontal drilling and completion techniques targeting the Mississippian aged formations (that sit above the Woodford Shale) and the Woodford Shale itself (the organic rich source rock for the hydrocarbons in the basin). The SWISH AOI is an area of interest in the core of the SCOOP Play, identified and named by Brookside's partner and manager of US operations, Black Mesa (see Figure 1.)

Figure 1: Anadarko Basin, Oklahoma (STACK & SCOOP Plays)

1. Reported on a cash basis
2. Cash as at 31 December 2021
3. Net production figures are volumes attributable to the Company's Working Interest and are net of royalties

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Brookside's Three Pillars

"Working with local

communities to ensure

sustainable growth and value creation through the safe and efficient development of energy assets"

During the quarter, the Company saw significant activity across each of its three pillars of Operated Drilling, Producing Properties Acquisitions and Land & Leasing. Three of the most significant and high-impact events this quarter were Jewell Well production, which reached a peak rate considerably above pre-drill high side estimates and continued to produce above expectations, an 800% increase in revenue from sales, and the spudding of Brookside's second operated well, the Rangers Well (see Figure 2).

Rangers 36-25 SXH 1

Figure 2: SWISH activity map showing the location the Rangers Well and Brookside's three operated DSUs

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Drilling and Completion Activities

The Company has an interest in forty-three wells, targeting the productive formations of the Anadarko Basin (see Table 1).

	Well Name	WI	OPERATOR	STATUS
	JEWELL 1-13-12SXH	41.6%	Black Mesa Energy, LLC	Producing
	FLAMES 10-3-WH1	74.5%	Black Mesa Energy, LLC	Permitting
	MITCHELL 12-1	49.4%	Black Mesa Energy, LLC	Producing
	THELMA 1-32	36.2%	Black Mesa Energy, LLC	Producing
	RANGERS #1-36-WH1	80.2%	Black Mesa Energy, LLC	WOC
	CARTER 12-1	37.0%	Black Mesa Energy, LLC	Producing
	NEWBERRY	21.7%	Black Mesa Energy, LLC	Producing
	HERRING 1-33 1513MH	18.2%	Citizen Energy III, LLC	Producing
	COMPTON 2-8	9.46%	Mustang Fuel Corp.	Producing
	BULLARD 1-18-07UWH	5.21%	Rimrock Resource Operating, LLC	Producing
	HENRY FEDERAL 1-8-5XH	4.43%	Continental Resources, Inc.	Producing
	CAULEY 1-7	4.22%	Devon Energy Corp.	Shut-In
	GERHARDT 1-7	4.22%	Devon Energy Corp.	Shut-In
	TRIM UNIT 1	4.22%	Devon Energy Corp.	Shut-In
	DR NO 1-17-20 1611MHX	3.79%	Citizen Energy III, LLC	Producing
	MOTE 1-26-23UWH	3.20%	Rimrock Resource Operating, LLC	Producing
	SPHINX 26 23-16N-11W-1XH	2.89%	Devon Energy Corp.	Producing
	ROSER 1611 1-3-34MXH	2.80%	Marathon Oil Co.	Producing
	KEVIN FIU 1-20-17XH	2.21%	Continental Resources, Inc.	Producing
	LADYBUG 27 22-15N-13W 1HX	2.15%	Devon Energy Corp.	Producing
	LANDRETH BIA 1-14H	1.80%	Marathon Oil Co.	Producing
	DAVIS 1-8-1611MH	1.17%	Citizen Energy III, LLC	Producing
	STRACK 1-2-11XH	1.02%	Marathon Oil Co.	Producing
	MIKE COM 1H-0706X	0.38%	Cimarex Energy, Co.	Producing
	CENTAUR 7_6-15N-10W 3HX	0.29%	Devon Energy Corp.	Producing
	CENTAUR 7_6-15N-10W 2HX	0.29%	Devon Energy Corp.	Producing
	CENTAUR 7_6-15N-10W 4HX	0.28%	Devon Energy Corp.	Producing
	CENTAUR 7_6-15N-10W 5HX	0.28%	Devon Energy Corp.	Producing
	LEON 1-23-14XHM	0.17%	Continental Resources, Inc.	Producing
	BIFFLE 22-15 UW1H	0.16%	Cheyenne Petroleum, Co.	Producing
	BOARDWALK 1-5MH	0.15%	Continental Resources, Inc.	Producing
	LEXINGTON 1-32-29XHW	0.08%	Continental Resources, Inc.	Producing
	ESSEX 1R-12-13-24XHW	0.03%	Continental Resources, Inc.	Producing
	ZENYATTA 28-33-1-4 1WXH	0.02%	Citizen Energy III, LLC	Producing
	RINGER RANCH 1-20-17XHM	0.01%	Continental Resources, Inc.	Producing
	GRAMERCY 1-32-5-6-8XHW	0.17%	Continental Resources, Inc.	Producing
	McKINLEY 13&24 15-13	0.00%	Continental Resources, Inc.	ORRI Only
	ASSAULT 1-9-16-21XHM	0.08%	Citation Oil & Gas Company	Producing
	BUCHER 1711 1-34MH	0.00%	Marathon Oil Co.	ORRI Only
	MCCLUNG 1-17	0.00%	Encana	ORRI Only
	ROSER 1611 1-3-34MXH	0.00%	Marathon Oil Co.	ORRI Only
	ROSER 1611 2-3-34MXH	0.00%	Marathon Oil Co.	ORRI Only
	ROSER 1711 4-3-34MXH	0.00%	Marathon Oil Co.	ORRI Only

Table 1: Company wells and working interest (WI) in the SCOOP and STACK Plays in the Anadarko Basin, Oklahoma

Note: Working Interest percentages may change subject to the issue of final pooling orders. Working Interests for the Rangers and Flames are estimates post pooling.

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Jewell 13-12-1S-3W SXH1 well (Jewell Well)

During the quarter the Jewell Well reached and then exceeded the pre-drill high side estimate, reaching a peak rate (IP24) of ~1,800 BOE per day (75% liquids, 25% gas). Independent of this IP24 rate, a peak oil rate of 973 barrels per day and peak rich gas rate of 3,959 Mcf per day were also achieved.

The Jewell Well continued to outperform for the quarter, achieving an IP30 of 1,604 BOE per day (30-day average) within a period of measurement covering a combination of production rate growth followed by steady production. This sustained rate was significantly above Brookside's pre-drill estimates for the Jewell Well's IP30.

An IP90 of ~1,570 BOE per day was achieved (~73% liquids) with the Jewell Well production continuing to exceed expectations.

The operated drilling, completion and production of the Jewell Well was a very important milestone for Brookside. It not only allowed the Company to join the ranks of operator- producers but more importantly showed that the Company can execute its strategy, run operations safely and on budget and generate significant cashflow.

Figure 3: Cumulative production on 31 Dec 2021 for the Jewell Well.