Brookside Energy : Quarterly Activities Report and Appendix 5B - June 2022

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QUARTERLY REPORT	29 July 2022

Second Quarter 2022 Activities and Cashflow Report

Perth, Western Australia - 29 July 2022 - Brookside Energy Limited (ASX: BRK) (Brookside or the Company) is pleased to provide the following summary of the Company's activities during the second quarter of 2022.

Highlights

• Company record of A$11,723,000 in second quarter receipts from the sale of oil, natural gas liquids, with net positive operating cashflow increasing 236% quarter on quarter to A$7,941,000.
• Gross operated daily production totalled 1,728 BOE per day for the quarter.
• Group net production (including non-operated production) totalled 961 BOE per day (net to Brookside's Working Interest and after the deduction of royalties), growing 117% quarter on quarter.
• The Jewell Well, the Company's first high-impact operated well in the SWISH Area of Interest (AOI), achieved gross production for the quarter of 71,833 BOE and cumulative production to the end of the quarter of 339,000 BOE.
• The Rangers Well, Brookside's second operated well in the SWISH AOI, commenced production in April, achieving a gross daily production rate of 1,310 BOEPD by 22 June and gross cumulative production of 81,733 BOE to the end of the quarter.
• With commercial production now established in the Rangers Drilling Spacing Unit (DSU), this unit is classified as Held By Production (HBP). This classification will ultimately enable the Company to book proved developed and proved undeveloped reserves within this DSU.
• The Flames Well, the Company's third high-impact operated well in the SWISH AOI and its first well in the Flames DSU, successfully reached total depth, was cased and multi- stage hydraulic stimulation completed.
• Post the end of the quarter, the Company announced that flow-back and stimulation fluid recovery operations on the Flames Well had commenced with early oil and gas recovered.

About Brookside Energy Limited

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

USA (OTC Pink: RDFEF) 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$)	$0.018	Quarterly Sales1. (A$)	$11,723,000
Shares on Issue	5,011,272,899	Cash (A$)2.	$31,647,000
Market Capitalisation (A$)	~$90,000,000	Net Production3. (BOE/day)	961

The Company closed out the second quarter of 2022 in its strongest position since its establishment in 2015, with A$31.6 million in cash (A$23.4 million post the repayment of the Loan Notes detailed below), net positive operating cashflow of A$7,941,000 (from net oil and gas volumes of 86,000 BOE) and no debt. With its SWISH HBP program all but completed and these strong production and financial results, the Company is perfectly positioned to capitalise on its inventory of low-risk extremely high return development wells contained within our SWISH DSUs at a time when commodity prices are at decade highs.

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.)

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

1. Reported on a cash basis
2. Cash as at 30 June 2022
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

During the quarter, the Company saw significant activity across each of its three pillars of Operated Drilling, Producing Properties Acquisitions and Land & Leasing. With the Rangers Well coming on production during the quarter and adding to the existing strong production from the Jewell Well, the Company recorded record receipts from sales with net operating cashflow for the Company of A$7.9 million, an increase of 236% quarter on quarter. The Company's net production also increased substantially, growing by 117% quarter on quarter to 961 BOE per day. With the Rangers Well flowing back post the end of the quarter, plus a strong pipeline of wells to drill, these results announce to the market that Brookside is on its way to becoming a significant oil and gas company.

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

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Drilling and Completion Activities

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

Well Name	WI	OPERATOR	STATUS
JEWELL 13-12-1S-3W SXH1	51.99%	Black Mesa Energy, LLC	Producing
FLAMES 10-3-1S-3W WXH1	71.30%	Black Mesa Energy, LLC	Flowing
MITCHELL 12-1	49.4%	Black Mesa Energy, LLC	Shut-In
THELMA 1-32	36.2%	Black Mesa Energy, LLC	Producing
RANGERS 36-25-1S-4W SXH1	78.69%	Black Mesa Energy, LLC	Producing
CARTER 12-1	36.98%	Black Mesa Energy, LLC	Producing
NEWBERRY	21.7%	Black Mesa Energy, LLC	Producing
HERRING 1-33 1513MH	18.18%	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	0.29%	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 & RI
ROSER 1611 2-3-34MXH	0.00%	Marathon Oil Co.	ORRI Only
ROSER 1711 4-3-34MXH	0.00%	Marathon Oil Co.	ORRI Only
BOARDWALK 1-5MH	0.00%	Continental Resources, Inc.	ORRI
HENRY FEDERAL 1-8-5XH	0.00%	Continental Resources, Inc.	ORRI
LADYBUG 27 22-15N-13W 1HX	0.00%	Devon Energy Corp.	ORRI
DR NO 1-17-20 1611MHX	0.00%	Citizen Energy III, LLC	ORRI
CATSKILLS 1-1-12XHW	0.00%	Continental Resources, Inc.	ORRI
CATSKILLS 1-1-12XHW	0.12%	Continental Resources, Inc.	Drilling
NW CAMP DEESE UNIT	0.00%	Phoenix Petrocorp, Inc.	RI
TATUMS FIELD UNIT	0.00%	Citation Oil & Gas Company	RI
TATUMS TOWNSITE UNIT	0.00%	Citation Oil & Gas Company	RI
TATUMS SAND UNIT	0.00%	Citation Oil & Gas Company	RI

Table 1: Company wells / DSUs 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 Interest for the Flames is estimate post pooling.

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