Proactiveinvestors Australia Whitebark Energy Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Whitebark Energy Ltd RSS feed en Wed, 24 Jul 2019 09:08:37 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Whitebark Energy adds to Wizard Lake land position following successful bid ]]> https://www.proactiveinvestors.com.au/companies/news/224096/whitebark-energy-adds-to-wizard-lake-land-position-following-successful-bid-224096.html Whitebark Energy Ltd (ASX:WBE) has added 320 acres over the Wizard Lake oil field in Aberta, Canada following a successful land bid.

The new addition increases Whitebark’s total area to 3,705 acres (gross) and provides additional potential drilling opportunities.

 

Notably, the addition of the half section to the south of the Wizard Lake oil discovery increases the potential wells locations to at least 20 wells.

The Wizard Lake area is covered by an Area of Mutual Interest and Right of First Refusual Agreement with Point Loma Resources Ltd (CVE:PLX).

Under the agreement, any land acquired or sold by either party is subject to certain conditions. As a result, Point Loma has the right to acquire 50% of the new land acquired.

READ: Whitebark Energy appoints rig and crew that successfully drilled Rex-1 to start drilling Rex-2

The company recently appointed Precision Drilling as the drilling contractor to drill the company’s upcoming Rex-2 development well at Wizard Lake.

Following the drilling of Rex 2, Whitebark will have a 40% working interest in Rex-2 and the Wizard Lake oil field, increasing to 50% following the drilling of Rex 3.

The rig and crew that successfully drilled Rex-1 in nine days, Precision Drilling Rig 186, will return to spud Rex-2 within the next 14 days.

READ: Whitebark Energy producing 275 barrels of medium grade crude per day ]]>
Thu, 18 Jul 2019 12:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/224096/whitebark-energy-adds-to-wizard-lake-land-position-following-successful-bid-224096.html
<![CDATA[News - Whitebark Energy welcomes WA Government fracturing implementation plan ]]> https://www.proactiveinvestors.com.au/companies/news/223950/whitebark-energy-welcomes-wa-government-fracturing-implementation-plan-223950.html Whitebark Energy Ltd (ASX:WBE) has welcomed the WA Government’s fracturing implementation plan which charts steps to be undertaken to incorporate recommendations of a scientific enquiry into regulations.

This marks the end of the ban on onshore fracking and companies may now submit applications to the EPA for review.

The field of the Warro Gas Project has been appraised by the drilling, fracking and testing of four wells which have confirmed the presence of a substantial gas resource.

READ: Whitebark Energy appoints rig and crew that successfully drilled Rex-1 to start drilling Rex-2

Whitebark has also welcomed the appointment of Adelaide Equity Partners as corporate advisor.

Adelaide Equity has substantial experience in natural resources, particularly the oil and gas sector.

Its appointment comes during a pivotal stage in Whitebark’s development as the company looks to develop its Wizard Lake asset and provide a strategic assessment of the Warro project to best maximise value for shareholders.

READ: Whitebark Energy’s Rex-1 oil discovery well continues to improve  

The company appointed Precision Drilling as drilling contractor to drill the upcoming Rex-2 development well at the Wizard Lake oil field in Alberta.

Following the drilling of Rex-2, Whitebark will have a 40% working interest in Rex-2 and the Wizard Lake oil field, increasing to 50% following the drilling of Rex-3.

The rig and crew that successfully drilled Rex-1 in nine days will return to spud Rex-2 within the next 14 days.

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Tue, 16 Jul 2019 15:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223950/whitebark-energy-welcomes-wa-government-fracturing-implementation-plan-223950.html
<![CDATA[News - Whitebark Energy appoints rig and crew that successfully drilled Rex-1 to start drilling Rex-2 ]]> https://www.proactiveinvestors.com.au/companies/news/223865/whitebark-energy-appoints-rig-and-crew-that-successfully-drilled-rex-1-to-start-drilling-rex-2-223865.html Whitebark Energy Ltd (ASX:WBE) has appointed Precision Drilling as the drilling contractor to drill the company’s upcoming Rex-2 development well at the Wizard Lake oil field in Alberta.

Following the drilling of Rex 2, Whitebark will have a 40% working interest in Rex-2 and the Wizard Lake oil field, increasing to 50% following the drilling of Rex 3.

The rig and crew that successfully drilled Rex-1 in nine days, Precision Drilling Rig 186, will return to spud Rex-2 within the next 14 days.

Whitebark managing director David Messina said: “We welcome back Precision Drilling and are very happy to have secured the same rig and crew who successfully drilled Rex-1.

“I have every confidence they will retain their 100% strike rate in the Wizard Lake oil field after the drilling of Rex-2.

“Both the rig and crew have continued to work in the local area so the transition over to Rex-2 should be seamless.”

 

Rig 186 is a Super Single Series Rig which has a low load count and provides highly automated features designed to deliver operational efficiencies.

READ: Whitebark Energy producing 275 barrels of medium grade crude per day

Messina said the Rex-2 well would have a horizontal leg of 1600 metres, compared to 1230 metres for the Rex-1 well.

He added: “The additional lateral length provides greater economies of scale as we can drill and frac more stages utilising equipment and staff already mobilised to site.”

READ: Whitebark Energy’s Rex-1 oil discovery well continues to improve ]]>
Mon, 15 Jul 2019 14:47:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223865/whitebark-energy-appoints-rig-and-crew-that-successfully-drilled-rex-1-to-start-drilling-rex-2-223865.html
<![CDATA[News - Whitebark Energy’s Rex-1 oil discovery well continues to improve ]]> https://www.proactiveinvestors.com.au/companies/news/223157/whitebark-energys-rex-1-oil-discovery-well-continues-to-improve-223157.html Whitebark Energy Ltd (ASX:WBE) has provided a progress update for the Rex-1 well that commenced production on 5 June at its Wizard Lake Project in Canada.

The oil cut from the Rex-1 well has increased to over 50% with the separation facility upgrading the final oil to 99.5% that is then delivered to refineries.

Current production is estimated at 250 barrels of oil per day (gross) but the pumping rate has been limited by trucking capacity on flooded roads due to unusually high rainfall.

Whitebark has a 30% working interest in Rex-1 increasing to 50% following the completion of a two well farm-in.

READ: Whitebark Energy appoints specialist drilling contractor for upcoming Rex-2 well

Whitebark’s managing director David Messina said: “The improving Rex-1 oil cut and quality is very encouraging for the broader Wizard Lake program, which has an inventory of at least 18 well locations following our acquisition of a new section of land to the north announced last month.

“Being able to deliver 99.5% oil using a simple, low cost tank cascade system reduces opex costs and is a testament to the commitment and abilities of the operations team in Alberta.

“We will be addressing the storage issues quickly and look forward to opening the well up fully again as storage capacity improves”.

Contractor appointed for Rex-2 well last month

Recently, Whitebard appointed Canadian oil sector specialist Magus Engineering to manage drilling operations for the upcoming Rex-2 well.

Magus has extensive experience managing end-to-end drilling programs and will manage all service procurement, drilling, wellsite construction and completion activities at Rex-2.

The appointment follows the commencement of commercial oil production from the Rex-1 well after completion of production facilities and a pipeline.

Proactive caught up with the company recently for an update.

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Tue, 02 Jul 2019 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223157/whitebark-energys-rex-1-oil-discovery-well-continues-to-improve-223157.html
<![CDATA[News - Whitebark Energy producing 275 barrels of medium grade crude per day ]]> https://www.proactiveinvestors.com.au/companies/news/222376/whitebark-energy-producing-275-barrels-of-medium-grade-crude-per-day-222376.html Whitebark Energy Ltd (ASX:WBE) has provided an update on interim flow rates from its Rex-1 oil discovery well within the Wizard Lake Project in Canada.

Current production after ten days is estimated at 275 barrels of oil per day (gross) with production still increasing as pump speed is optimised and the well continues to clean up.

The oil is being sold as medium grade crude at around C$58 per barrel and Whitebark is receiving 100% of the net income until costs of around C$750,000 are recovered.

Furthermore, an additional 720 acres has also been secured over the Wizard Lake oil field taking the total gross area to 3,385 acres providing 18+ potential drilling opportunities.

READ: Whitebark Energy appoints specialist drilling contractor for upcoming Rex-2 well

Whitebark Energy’s managing director David Messina said: “The Rex-1 well has been cleaning up nicely and, consistent with our pre-production expectations, daily production has approached the levels we saw in the completion testing and is continuing to increase.

“This validates the initial testing results and puts us in a good position for a quick payback, thereby supporting the investment case for the next Rex wells.

“The success at Rex-1 has increased our confidence around the broader Wizard Lake development and we have taken the opportunity to secure additional ground that will increase our inventory of future well locations to at least 18 wells.”

Proactive caught up with the company recently for an update.

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Wed, 19 Jun 2019 09:51:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222376/whitebark-energy-producing-275-barrels-of-medium-grade-crude-per-day-222376.html
<![CDATA[News - Whitebark Energy appoints specialist drilling contractor for upcoming Rex-2 well ]]> https://www.proactiveinvestors.com.au/companies/news/221933/whitebark-energy-appoints-specialist-drilling-contractor-for-upcoming-rex-2-well-221933.html Whitebark Energy Ltd (ASX:WBE) has appointed Canadian oil sector specialist Magus Engineering to manage drilling operations for the upcoming Rex-2 well at its Wizard Lake Project in Canada.

Magus has extensive experience managing end-to-end drilling programs and will manage all service procurement, drilling, wellsite construction and completion activities at Rex-2.

The appointment follows the recent commencement of commercial oil production from the Rex-1 well after the completion of production facilities and a pipeline.

READ: Whitebark Energy starts commercial oil production at Wizard Lake after constructing pipeline and process facility

Whitebark Energy’s managing director David Messina said: “Whitebark recently agreed to fund the next two wells in the Wizard Lake program in return for a 20% increased interest in the field.

“The Wizard Lake development presents an enormous growth opportunity for Whitebark and it is important we manage this program carefully as well as quickly.

“The appointment of a local operations expert with extensive technical experience in the region is an important step, and Magus Engineering is an excellent fit.

“With the well manager now in place and the weather in Canada conducive for continuous drilling operations, we look forward to updating shareholders on the spudding and progress of Rex-2 over the coming months.”

Proactive caught up with the company this week for an update

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Wed, 12 Jun 2019 13:50:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221933/whitebark-energy-appoints-specialist-drilling-contractor-for-upcoming-rex-2-well-221933.html
<![CDATA[Media files - Whitebark Energy begins commercial oil production at Wizard Lake project in Canada ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13690/whitebark-energy-begins-commercial-oil-production-at-wizard-lake-project-in-canada-13690.html Mon, 10 Jun 2019 18:04:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13690/whitebark-energy-begins-commercial-oil-production-at-wizard-lake-project-in-canada-13690.html <![CDATA[News - Whitebark Energy starts commercial oil production at Wizard Lake after constructing pipeline and process facility ]]> https://www.proactiveinvestors.com.au/companies/news/221517/whitebark-energy-starts-commercial-oil-production-at-wizard-lake-after-constructing-pipeline-and-process-facility-221517.html Whitebark Energy Ltd (ASX:WBE) has begun commercial oil production from the Rex-1 well at its Wizard Lake Project in Canada after completion of production facilities and a pipeline.

Pumping began overnight with fluids now flowing into the series of tanks at the production facility for water removal and transportation to a nearby refinery.

The new central production and processing facility is 1.6 kilometres from Rex-1 and has the capacity to service additional wells through the addition of further tank modules.

 

Whitebark managing director David Messina said first commercial oil production at Wizard Lake was a key milestone in the company’s strategy to drive production and reserve growth in its Alberta-based acreage.

He said: “Not only have we successfully increased our production and reserves position, we have also demonstrated our ability to bring wells onto production quickly and at a low capital cost.

“This is very important given the reserves update identified 12 to 17 likely well locations at Wizard Lake.”

READ: Whitebark Energy to increase interest to 50% at Wizard Lake development

The funded 2019 development program at Wizard Lake comprises construction of pipeline and production facilities on a multi-well pad, as well as the drilling of two new Wizard Lake wells in second half 2019.

Whitebark’s working interest in the Wizard Lake oil development will increase up to 50% after the two-well drilling program and reserves assessment indicates the likelihood of 12-17 follow-up well locations.

The company expects Rex-1 will take several weeks to clean up and for the oil cut to stabilise.

To remove any associate water, the company is using a low-cost modular separation technique which is being adopted throughout the region.

This method uses a series of tanks and gas derived from the well to heat the emulsion and separate out the water.

Wizard Lake's development plan

  READ: Whitebark Energy begins work on production facilities at Wizard Lake joint oil project

Messina added: “With production now up and running, we can turn our full attention to the drilling of Rex-2, where we have recently increased our working interest to 40% on the completion of the well.

“A successful Rex-2 outcome should put the company in a very strong position to internally fund the development of the remaining wells at Wizard Lake given the low drilling and development costs in Canada.”

READ: Whitebark Energy secures funds from strategic investor at a premium

The Wizard Lake Rex well was spud on November 24 last year and began clean-up flows in late December after a 270stage fracture stimulation program.

Initial flow testing of the horizontal oil well recorded production rates of more than 300 barrels of oil per day.

Once reconciliation of hydrocarbons produced from the January 2019 flow test was completed in January, total oil produced from the 16-day flow test increased from 1,833 barrels to 2,845 barrels of oil.

The company believes the 55% increase in total testing volumes would likely mean daily production when brought online will be higher than initially forecast.

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Tue, 04 Jun 2019 23:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221517/whitebark-energy-starts-commercial-oil-production-at-wizard-lake-after-constructing-pipeline-and-process-facility-221517.html
<![CDATA[News - Whitebark Energy to increase interest to 50% at Wizard Lake development ]]> https://www.proactiveinvestors.com.au/companies/news/221259/whitebark-energy-to-increase-interest-to-50-at-wizard-lake-development-221259.html Whitebark Energy Ltd (ASX:WBE) has reached an agreement with its Canadian partner to increase its interest to 50% at the Wizard Lake oil development.

The increase to 50% from 30% will take place after the completion of a Whitebark-funded two well drilling program of Rex-2 and Rex-3.

Rex-2 is expected to spud in July/August 2019 and Whitebark will receive 75% of well revenues until payout of its capital investment, estimated at C$2.3 million.

After payback of Rex-2, Whitebark will increase its interest to 40% and then can elect to proceed with Rex-3 to increase its interest to 50% of the entire field and surrounding area.

READ: Whitebark Energy begins work on production facilities at Wizard Lake joint oil project

Whitebark Energy’s managing director David Messina said: “The Wizard Lake Oil Development presents a huge opportunity for Whitebark and we are committed to realise the substantial value that the discovery offers.

“We have been flexible with our funding program over the past six months and through a combination of asset sales and strategic equity raisings, we have positioned Whitebark to pursue a more aggressive growth program.

“The Rex-1 well remains on track to commence oil production in early June 2019 as completion of the site facilities draws near, and we can now start to focus on drilling Rex-2.”

READ: Whitebark Energy secures $1.95 million as Grand Gulf Energy becomes substantial holder

Earlier this month, Whitebark completed a $1.95 million capital faising via the issue of 390 million shares priced at 0.5 cents each to Grand Gulf Energy Ltd (ASX:GGE) for a 19.87% interest.

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Fri, 31 May 2019 09:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221259/whitebark-energy-to-increase-interest-to-50-at-wizard-lake-development-221259.html
<![CDATA[News - Whitebark Energy secures $1.95 million as Grand Gulf Energy becomes substantial holder ]]> https://www.proactiveinvestors.com.au/companies/news/220318/whitebark-energy-secures-195-million-as-grand-gulf-energy-becomes-substantial-holder-220318.html Whitebark Energy Ltd (ASX:WBE) has raised $1.95 million in funding via the issue of 390 million shares priced at 0.5 cents each to Grand Gulf Energy Ltd (ASX:GGE) for a 19.87% interest.

Funding will be used for production facilities and drilling programs at the Wizard Lake Oil Pool Project housed in the Point Loma Joint Venture (PLJV) in Canada.

READ: Whitebark Energy begins work on production facilities at Wizard Lake joint oil project

Whitebark has already commenced the next phase of the Wizard Lake development following the success of the Rex‐1 discovery well in January 2019.

The company has begun construction of surface production facilities, including an access road and installation of pipelines.

This work is aimed at bringing the Rex-1 well into production and facilitating drilling of the Rex-2 and Rex-3 wells in mid-2019 and early 2020 as planned.

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Thu, 16 May 2019 08:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220318/whitebark-energy-secures-195-million-as-grand-gulf-energy-becomes-substantial-holder-220318.html
<![CDATA[News - Whitebark Energy begins work on production facilities at Wizard Lake joint oil project ]]> https://www.proactiveinvestors.com.au/companies/news/219695/whitebark-energy-begins-work-on-production-facilities-at-wizard-lake-joint-oil-project-219695.html Whitebark Energy Ltd (ASX:WBE) has begun construction of surface production facilities at the Wizard Lake joint oil project in Canada, including an access road and installation of pipelines which comprise the next stage of the development.

This work is aimed at bringing the Rex-1 well into production and facilitating drilling of the Rex-2 and Rex-3 wells in mid-2019 and early 2020 as planned.

Access road under construction

Adverse weather has delayed construction and work is now expected to be completed by the end of this month, after which the Rex-1 oil discovery well will be immediately tied in with the start of production.

The program is fully funded from existing cash reserves and the strategic placement to Grand Gulf Energy Limited (ASX:GGE).

 

The Wizard Lake Rex well was spud on November 24, 2018, and following a 27-stage fracture stimulation program, the well began clean-up flows on December 24, 2018.

Initial flow testing of the Wizard Lake Rex horizontal oil well recorded production rates of more than 300 barrels of oil per day prior to the completion of testing.

Following reconciliation of the hydrocarbons produced from the January 2019 flow test of its Wizard Lake Rex well, the total oil produced from the 16-day flow test was increased by 55% from 1,833 barrels of oil to 2,845 barrels.

This increase in total testing volumes is likely to mean that daily production, when the oil is brought on line, will be higher than initially forecast.

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Mon, 06 May 2019 10:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219695/whitebark-energy-begins-work-on-production-facilities-at-wizard-lake-joint-oil-project-219695.html
<![CDATA[Media files - Whitebark Energy raises nearly $2 million to develop Rex-1 oil discovery ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12722/whitebark-energy-raises-nearly-2-million-to-develop-rex-1-oil-discovery-12722.html Tue, 26 Mar 2019 00:42:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12722/whitebark-energy-raises-nearly-2-million-to-develop-rex-1-oil-discovery-12722.html <![CDATA[News - Whitebark Energy secures funds from strategic investor at a premium ]]> https://www.proactiveinvestors.com.au/companies/news/216983/whitebark-energy-secures-funds-from-strategic-investor-at-a-premium-216983.html Whitebark Energy Ltd (ASX:WBE) has secured $1.95 million in funding through a subscription agreement with Grand Gulf Energy Ltd (ASX:GGE) for 390 million shares priced at 0.5 cents.

Notably, this represents a premium to yesterday’s closing price of 0.4 cents.

Funding will be used for production facilities and drilling programs at the Wizard Lake Oil Pool Project housed in the Point Loma Joint Venture (PLJV).

Next phase of Wizard Lake development commenced

Whitebark has commenced the next phase of the Wizard Lake development following the success of the Rex‐1 discovery well in January 2019.

The program will encompass the construction of a pipeline and installation of initial production facilities on a multi‐well pad in the next 1-2 months and the drilling of two new Wizard Lake wells this calendar year. 

Construction will shortly commence on the multi‐well pad and associated facilities, followed by the pipeline on receipt of final licence.

This will enable the Wizard Lake Rex‐1 well to be brought into commercial production in April, subject to weather.

The total gross cost for the pipeline, treatment facility and multi-well pad is estimated to be A$630,000 and the cost of the next well, Rex-2 is estimated to be C$2.8 million.

READ: Whitebark Energy expects to further increase reserves at Wizard Lake in Canada

Whitebark’s managing director David Messina said: “Grand Gulf Energy shares our enthusiasm for our oil development opportunities in Alberta, and I would like to welcome Grand Gulf shareholders as new investors in Whitebark.

“As a result of the Grand Gulf investment, Whitebark now has the necessary funding in place to ensure it can proceed quickly with drilling the next Rex wells and lead the development program.

“This represents a major turning point for Whitebark. We are fully funded to drill at least the next two wells in the Wizard Lake oil pool, where 12 to 17 likely well locations have been identified by the recent reserves update. 

“A successful Rex‐2 outcome should put the company in a strong position to internally fund the development of the remaining well locations from an increasing inventory of producing wells.”

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Fri, 22 Mar 2019 09:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216983/whitebark-energy-secures-funds-from-strategic-investor-at-a-premium-216983.html
<![CDATA[News - Whitebark Energy expects to further increase reserves at Wizard Lake in Canada ]]> https://www.proactiveinvestors.com.au/companies/news/216598/whitebark-energy-expects-to-further-increase-reserves-at-wizard-lake-in-canada-216598.html Whitebark Energy Ltd (ASX:WBE) specialises in oil exploration and development in Canada and holds a fraccing asset in Western Australia where a moratorium on hydraulic fracture stimulation was lifted last year.

It is run by David Messina, a senior executive who has more than 23 years experience in the energy and agricultural biotechnology industries.

Messina has led energy and gas sector companies for the past 13 years and has been based in London, Australia and Europe.

The managing director is skilled at raising significant amounts of funds and identifying strategic partnership opportunities.

What does Whitebark Energy own?

The key asset in Canada is the Wizard Lake Oil Pool Project housed in the Point Loma Joint Venture (PLJV).

Whitebark has a 30% stake in the PLJV with TSXV-listed Point Loma Resources Ltd (CVE:PLX).

The Albertan province project takes in the 2018 Rex well discovery and has 1P (proved) reserves of 132,000 barrels, and 2P (proved plus probable) reserves of 225,000 barrels.

Further updates are expected at the project where 2P reserves were increased by 70% last week after a short production test period.

Once a production well at the project is placed on permanent production in about April 2019, further revisions are expected.

WA-based Whitebark is waiting for full regulatory approvals and facility and pipeline completions before it starts permanent production.

The company expects the production milestone will be achieved in June quarter 2019, with commercial oil production to follow.

A dozen more wells have been earmarked for the field to triple the number of well locations.

Further drilling is expected later this year.

Whitebark’s previously stated strategy was to focus on its Duvernay Shale formation acreage in Alberta, Canada.

In Australia, the West Perth company has the Warro Gas Project northeast of Wheatbelt town Badgingarra and east of holiday spot Jurien Bay.

Warro was previously the company’s flagship project when it was known as Transerv Energy Limited (ASX:TSV).

Perth Basin project Warro has 4.4 to 11.6 trillion cubic feet (Tcf) of gas-in-place (GIP).

It is found 110-200 kilometres north of WA’s capital Perth and less than 35 kilometres from Dampier-Bunbury Natural Gas Pipeline and the Dongara-Perth Parmelia Pipeline.

Dampier and Bunbury both feature ports, as does Perth at two harbours run by Fremantle Ports.

Whitebark welcomed the findings of the Independent Scientific Panel Inquiry into Hydraulic Fracture Stimulation in Western Australia 2018’s final report released in November 2018

The panel found the risks associated with gas extraction techniques were minimal and could be managed safely.

While the state government committed to implementing all the inquiry’s recommendations, some have tipped fraccing in WA would not resume until 2020.

Whitebark has previously noted its cost of fraccing in Canada was about 20% of comparable projects in WA and was achieved in a four-week approval time.

The company had $3.9 million cash on December 31, 2018 and expected $1.4 million of cash outflows in March quarter 2019.

Whitebark’s exploration and evaluation spend for March quarter 2019 was a budgeted $1 million.

Inflection points

Permanent production at Wizard Lake

Commercial production at Wizard Lake

WA Government progress on fraccing reform

Alberta, Canada portfolio development by Whitebark

Significant milestones from Whitebark investment Triangle Energy (Global) Ltd (ASX:TEG) (FRA:WMOA)

Managing director David Messina tips reserve upgrades

“Given the very short test period and the effective date of the reserve report we are very encouraged with the reserve statement and look forward to revising the numbers once the well is on production and we move forward with additional drilling plans this year,” managing director David Messina said.

 

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Sun, 17 Mar 2019 23:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216598/whitebark-energy-expects-to-further-increase-reserves-at-wizard-lake-in-canada-216598.html
<![CDATA[News - Whitebark Energy Ltd increases 2P Oil Reserves by 70%, sees another 12 possible well locations ]]> https://www.proactiveinvestors.com.au/companies/news/216516/whitebark-energy-ltd-increases-2p-oil-reserves-by-70-sees-another-12-possible-well-locations-216516.html Whitebark Energy Ltd (ASX:WBE) has received an update on its reserve position for its Wizard Lake Oil Pool in Canada as at 31 December 2018.

Net reserves for the Wizard Lake Oil Pool, incorporating the Rex Discovery well, have been assessed as 1P (proved) reserves of 132,000 barrels, and 2P (proved plus probable) reserves of 225,000 barrels.

Most notably, this update from the 30 June 2018 reserve position delivered a 70% increase to Whitebark’s reported 2P oil reserves, despite only a short production test period.

Further revisions will be undertaken once the well has been placed on permanent production which is anticipated to occur in April 2019 once all regulatory approvals are received and facilities and pipelines are completed.

READ: Whitebark Energy increases flow test oil production by 55%

Whitebark’s managing director David Messina said: “Given the very short test period and the effective date of the reserve report we are very encouraged with the reserve statement and look forward to revising the numbers once the well is on production and we move forward with additional drilling plans this year”.

Another 12 possible well locations

The well spacing adopted in the assessment has revealed the likelihood of for another 12 possible well locations in the field, potentially tripling the follow-up well locations in the field.

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Fri, 15 Mar 2019 11:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216516/whitebark-energy-ltd-increases-2p-oil-reserves-by-70-sees-another-12-possible-well-locations-216516.html
<![CDATA[News - Whitebark Energy increases flow test oil production by 55% ]]> https://www.proactiveinvestors.com.au/companies/news/214913/whitebark-energy-increases-flow-test-oil-production-by-55-214913.html Whitebark Energy Ltd (ASX:WBE) has updated the total oil produced from the 16-day flow test at its Wizard Lake Rex oil well by 55% to 2,845 barrels from 1,833 barrels.

Before the reconciliation, the well was assessed at 305 barrels of oil per day and rising when the flow test was completed.

This increase in total testing volumes would very likely mean that daily production, when the well is brought online, will be higher than initially forecast.

READ: Whitebark Energy confirms commercial oil discovery at Wizard Lake

Whitebark’s managing director David Messina said: “The total cost for the pipeline, a new production pad and small treatment facility is estimated to be less than A$530,000, which is A$160,000 to Whitebark Energy.

“We look forward to hooking the Wizard Lake Rex well into production in Q2, by which time we also expect to have received an independent reserves evaluation.

“We should start receiving initial cash flow from the well in the June quarter, but the September quarter will better reflect the new production given typical commercial payment terms.”

On track for production in the June quarter of 2019

Progress on the tie-in of the Wizard Lake Rex well to production has continued with landholder approvals required to construct a pipeline and treatment facility well advanced.

The increased volumes are being factored into the pipeline and facility requirements for commercial production.

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Wed, 20 Feb 2019 09:13:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214913/whitebark-energy-increases-flow-test-oil-production-by-55-214913.html
<![CDATA[Media files - Whitebark Energy targeting commercial oil production from Wizard Lake in Q2 this year ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11910/whitebark-energy-targeting-commercial-oil-production-from-wizard-lake-in-q2-this-year-11910.html Mon, 21 Jan 2019 14:56:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11910/whitebark-energy-targeting-commercial-oil-production-from-wizard-lake-in-q2-this-year-11910.html <![CDATA[News - Whitebark Energy confirms commercial oil discovery at Wizard Lake ]]> https://www.proactiveinvestors.com.au/companies/news/212912/whitebark-energy-confirms-commercial-oil-discovery-at-wizard-lake-212912.html Whitebark Energy Ltd (ASX:WBE) has completed testing of the Wizard Lake Rex horizontal oil well and established a 305 barrels of oil per day (bpd) commercial flow rate.

This was the final pumping rate over the last 24 hours of testing and notably, it was increasing as testing ended.

The associated gas in the flow increases the barrels of oil equivalent (boe) flow rate to 340 boe per day.

While rates were increasing when the flow test ended, the PLJV determined the field was commercial and ongoing testing costs could be better directed to bringing the field into long term, lower cost production.

READ: Whitebark Energy continues Wizard Lake Rex well flowback, gathers data on long-term production

Whitebark’s managing director David Messina said: “The oil discovery by the Wizard well is an excellent result and Whitebark is very pleased with the oil flow rates from the first well.

“This is just the sort of success WBE has been targeting and we look forward to pushing ahead with further appraisal work and production operations during the first half of 2019.

“The flow test results are very similar to those seen by other operators in the same reservoir during clean up flows of oil bearing reservoirs, which provides confidence about future wells in the pool.

“The PLJV will now bring the well onto production and determine the best approach to develop this new discovery.”

Rex well will increase total oil production by over 200%

Whitebark’s share of oil production at this rate would increase total oil production by over 200%.

Next steps to develop the Rex oil pool will be to tie-in the solution gas to a nearby gas processing facility and install a battery.

Rex prospect has the potential for 10-14 follow up development wells

The Rex target at Wizard Lake is the first horizontal well to be drilled in what could be a multi-well program analogous to the offsetting Leduc area Rex.

Recent activity in the area has resulted in highly commercial wells (250-300 boepd, 80% oil, 16-17 API, EUR 2P~250kboe).

The target zone in the PLJV lands has similar porosity but is thicker than at the Leduc area.

The Rex prospect has the potential for 10-14 follow up development wells.

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Mon, 21 Jan 2019 09:36:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212912/whitebark-energy-confirms-commercial-oil-discovery-at-wizard-lake-212912.html
<![CDATA[News - Whitebark Energy continues Wizard Lake Rex well flowback, gathers data on long-term production ]]> https://www.proactiveinvestors.com.au/companies/news/212544/whitebark-energy-continues-wizard-lake-rex-well-flowback-gathers-data-on-long-term-production-212544.html Whitebark Energy Ltd (ASX:WBE) has recovered a substantial amount of fluid and oil in ongoing flowback operations at its Wizard Lake Rex well in Canada.

The testing program will continue to establish a stabilised flow rate and to gather sufficient data to enable the design of suitable surface equipment to produce at the well on a long-term basis.

 

Whitebark managing director David Messina said: “The testing on our Wizard Lake Rex well is continuing successfully with the well now flowing uninterrupted for approximately seven days.

“We understand from adjacent fields that a 2-4 week clean-up period can be required to ensure we have collected the appropriate data before discontinuing testing.”

READ: Whitebark Energy begins flowback testing Wizard Lake Rex well, increases stake to 30%

Wizard Lake Rex was spud on November 24 last year and drilling finished on December 2, a total of nine days inclusive.

The well intersected a continuous reservoir section from the casing shoe with predominantly good quality reservoir together with fluorescence and cut oil shows and elevated gas readings.

Following a 27-stage fracture stimulation program, the well began clean-up flows on December 24.

READ: Whitebark Energy completes 27-stage frac in less than 36 hours at Wizard Lake Rex well

The Rex target at Wizard Lake is the first horizontal well to be drilled in a potentially multi-well program analogous to the offsetting Leduc area.

Recent activity in the area has resulted in highly-commercial wells which in one instance is producing 250-300 barrels of oil per day.

The target zone in the Point Loma joint venture tenements has similar porosity but is thicker than at the Leduc area.

READ: Whitebark Energy’s Wizard Lake Rex well flowback continues

Whitebark is based in Perth with production and exploration assets in Canada and Australia.

The company holds a number of licences varying between 20% and 30% interest in Alberta as part of the joint venture with Point Loma Resources Ltd (CVE:PLX).

The PLJV is an established producer with existing oil and gas processing facilities and pipelines into markets.

Whitebark also holds a 100% interest in the undeveloped Warro Gas Project 200 kilometres north of Perth.

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Mon, 14 Jan 2019 21:01:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212544/whitebark-energy-continues-wizard-lake-rex-well-flowback-gathers-data-on-long-term-production-212544.html
<![CDATA[News - Whitebark Energy’s Wizard Lake Rex well flowback continues ]]> https://www.proactiveinvestors.com.au/companies/news/212094/whitebark-energys-wizard-lake-rex-well-flowback-continues-212094.html Whitebark Energy Ltd (ASX:WBE) has recovered about 50% of the load fluid to date at a rate of 1,500 barrels per day from its Wizard Lake Rex well Alberta, Canada.

The oil cut continues to increase as the load fluid is drawn down and the company expects this trend to continue.

Whitebark’s managing director David Messina said: “The well is performing at rates above expectations to date and we are looking forward to seeing a substantive, stabilised, oil production outcome as we clean the well up in the next few weeks.”

READ: Whitebark Energy begins flowback testing Wizard Lake Rex well, increases stake to 30%

The Wizard Lake horizontal exploration well was drilled at the Rex target within the Point Loma Joint Venture (PLJV).

The Wizard Lake Rex well was spud on 24 November 2018 and drilling finished on 2 December 2018.

This is the first horizontal well to be drilled in what could be a multi-well program.

Nearby activity supports commercial prospects of area

Recent activity in the area has resulted in highly commercial wells.

The Rex prospect has the potential for 12-14 follow up development wells.

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Tue, 08 Jan 2019 09:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212094/whitebark-energys-wizard-lake-rex-well-flowback-continues-212094.html
<![CDATA[News - Whitebark Energy begins flowback testing Wizard Lake Rex well, increases stake to 30% ]]> https://www.proactiveinvestors.com.au/companies/news/211701/whitebark-energy-begins-flowback-testing-wizard-lake-rex-well-increases-stake-to-30-211701.html Whitebark Energy Ltd (ASX:WBE) has completed a successful drilling and fracture stimulation program on the Wizard Lake Rex well in Alberta, Canada and has now begun flowback testing of the well.

The coil tubing was successfully recovered with no impact on the integrity of the well bore.

As is the practice by other operators in the area, a high-volume, submersible pump is being used to assist with the recovery of frac fluids and to optimise the oil recovery rate.

The well will undergo an extended flowback and testing program which will provide valuable information on the potential of the well and the associated oil pool.

READ: Whitebark Energy completes 27 stage frac in less than 36 hours at Wizard Lake Rex well

The company has also signed an agreement lifting its working interest in the well and associated oil pool from 20% to 30%. The balance interest is held by Point Loma Resources Ltd (CVE:PLX).

Whitebark managing director David Messina said: “We are very pleased to be flowing back and testing this well before year end.

“As a reflection of the results we have seen to date, we have taken the opportunity to increase our interest to 30%.

“We look forward to sharing the results with the market as and when they are provided to the company early in the new year.”

Receipt of $1 million worth of shares on TP-15 sale

Whitebark has received $1 million worth of shares (11,191,052 shares) in Triangle Energy Global Ltd (ASX:TEG) as part payment for the sale of the TP-15 exploration permit in the Perth Basin.

On November 13, 2018 Whitebark had received the initial $2 million cash consideration for this transaction.

Two more payments totalling $2 million dollars may become payable subject to future performance milestones.

Whitebark managing director David Messina said: “The sale of TP-15 to Triangle has enabled us to actively peruse opportunities in Canada and, by receiving part payment in Triangle shares, we retain upside to activities at Xanadu as well as other activities in Triangle including the recently announced discovery at Reids Dome.”

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Mon, 24 Dec 2018 13:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211701/whitebark-energy-begins-flowback-testing-wizard-lake-rex-well-increases-stake-to-30-211701.html
<![CDATA[News - Whitebark Energy completes 27 stage frac in less than 36 hours at Wizard Lake Rex well ]]> https://www.proactiveinvestors.com.au/companies/news/211110/whitebark-energy-completes-27-stage-frac-in-less-than-36-hours-at-wizard-lake-rex-well-211110.html Whitebark Energy Ltd (ASX:WBE) and partner have completed a successful fracture stimulation program on the Wizard Lake Rex well (20% working interest for Whitebark) in Alberta, Canada.

The 27 stage frac program placed over 700 tonnes of proppant into the Rex formation. The next phase of the program is commencing flowback and testing which should start within 48 hours.

Background

Whitebark holds a number of licences varying between 20% and 30% interest in Alberta as part of its joint venture with Point Loma Resources Ltd (CVE:PLX).

The Wizard Lake Rex well was spud on November 24, 2018 and drilling finished on December 2, 2018.

Importantly, the well intersected a continuous reservoir section from the casing shoe with predominately good quality reservoir accompanied by excellent oil shows and elevated gas readings.

READ: Whitebark Energy and partner to begin 28-stage frac at Wizard Lake Rex well in Canada

The Rex target at Wizard Lake is the first horizontal well to be drilled in what could be a multi-well program analogous to the offsetting Leduc area Rex.

The target zone in the Point Loma Joint Venture (PLJV) lands has similar porosity but is thicker than at the Leduc area.

Whitebark recently welcomed the findings of the Independent Scientific Panel Inquiry into hydraulic fracture stimulation in Western Australia.

READ: Whitebark Energy to benefit from Western Australian government’s green light for fraccing

The panel has found that the risks associated with gas extraction techniques are minimal and can be safely managed.

As a result, the legislative impediment to the development of Whitebark’s fully owned Warro Project, located 200 kilometres north of Perth, is now in the process of being lifted by the Western Australian government.

It is worth noting that Warro Project has 4.4 to 11.6 trillion cubic feet (Tcf) of gas-in-place (GIP).

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Thu, 13 Dec 2018 15:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211110/whitebark-energy-completes-27-stage-frac-in-less-than-36-hours-at-wizard-lake-rex-well-211110.html
<![CDATA[News - Whitebark Energy and partner to begin 28-stage frac at Wizard Lake Rex well in Canada ]]> https://www.proactiveinvestors.com.au/companies/news/210914/whitebark-energy-and-partner-to-begin-28-stage-frac-at-wizard-lake-rex-well-in-canada-210914.html Whitebark Energy Ltd (ASX:WBE) advises that a 28-stage fracture stimulation program will begin today at the Rex well within the Point Loma Joint Venture (PLJV) Wizard Lake project in Alberta, Canada.

The program will take place in the Rex reservoir zone in the horizontal section of the well between 1562- 2739 metres measured depth.

Fraccing is being undertaken with the aim of increasing the flowing area of the reservoir, which directly influences the well’s capacity to yield oil.

READ: Whitebark Energy to begin frac work at promising exploration well in Alberta, Canada

Frac work is the practice of injecting a well with large amounts of proppants under high pressure to break the reservoir rocks and allow hydrocarbons to flow through the open cracks in the rocks.

The increase in well flowing area achieved as technology has improved.

Due to the continuous nature of the reservoir in the horizontal section, frac stages have been evenly spaced along the well bore at about 45 metres apart.

Each stage will emplace about 30 tonnes of proppant to establish a frac half-length of over 50 metres.

The frac work is expected to be completed within three to four days and will be followed by clean-up flows and testing.

Rex prospect has the potential for 12-14 follow up development wells.

READ: Whitebark Energy prepares for horizontal drilling at Wizard Lake Rex well

Whitebark holds a number of licences varying between 20% and 30% interest in Alberta as part of its joint venture with Point Loma Resources Ltd (CVE:PLX).

The PLJV is an established producer with existing oil and gas processing facilities and pipelines into markets.

Wizard Lake Rex well was spud on November 24, 2018, and drilling finished on December 2.

The well intersected a continuous reservoir section from the casing shoe with predominately good quality reservoir accompanied by excellent oil shows and elevated gas readings.

Rex target at Wizard Lake is the first horizontal well to be drilled in what could be a multi-well program analogous to the offsetting Leduc area Rex.

Recent activity in this area resulted in highly commercial wells.

The target zone in PLJV lands has similar porosity but is thicker than at the Leduc area.

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Tue, 11 Dec 2018 12:32:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210914/whitebark-energy-and-partner-to-begin-28-stage-frac-at-wizard-lake-rex-well-in-canada-210914.html
<![CDATA[News - Whitebark Energy to begin frac work at promising exploration well in Alberta, Canada ]]> https://www.proactiveinvestors.com.au/companies/news/210435/whitebark-energy-to-begin-frac-work-at-promising-exploration-well-in-alberta-canada-210435.html Whitebark Energy Ltd (ASX:WBE) is preparing to conduct a 28-stage frac work at its Wizard Lake Rex exploration well in Alberta, Canada, between 1562- 2739 metres measured depth (mMD).

Frac work is the practice of injecting a well with large amounts of proppants under high pressure to break the reservoir rocks and allow hydrocarbons to flow through the open cracks in the rocks.

Good quality reservoir accompanied by excellent oil shows

The Wizard Lake Rex exploration well intersected a virtually continuous reservoir section from the casing shoe (1536 mMD) to the total depth of the well at 2773 mMD with good quality reservoir accompanied by excellent oil shows and elevated gas readings.

Due to the continuous nature of the reservoir in the horizontal section, the frac stages have been evenly spaced along the well bore at about 43 metres apart.

Each stage will emplace about 30 tonnes of proppant using a crossed linked gel to achieve high proppant concentrations at low pump rates.

The frac work is expected to be completed within two weeks and will be followed by normal clean-up flows and testing.

 

Whitebark holds a number of licences varying between 20% and 30% interest in Alberta as part of its joint venture with Point Loma Resources Ltd (CVE:PLX).

The Point Loma Joint Venture (PLJV) is an established producer with existing oil and gas processing facilities and pipelines into markets.

The PLJV now intends to delay the second exploration well at Wizard Lake until the testing of the Rex well has been carried out and the results evaluated.

With a positive test result, the PLJV will be looking to accelerate the development of the Rex pool by directing drilling funds towards field development work.

READ: Whitebark Energy to benefit from Western Australian government’s green light for fraccing

Whitebark managing director David Messina said: “We are very pleased by the well results.

“Not only does it appear we have a very exciting well on our hands but the drilling operation has been done on time and budget.

“We look forward to the frac work being finished so we can commence the testing program.”

“We are also encouraged by the announcement by the provincial government to temporarily reduce oil production by 8.7% (325,000bopd).

“This will remove excess supply from the market and support oil pricing. As the PLJV produces less than 10,000bopd, it is unaffected by the cuts but will enjoy the benefit of any rebound in oil pricing.”

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Tue, 04 Dec 2018 13:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210435/whitebark-energy-to-begin-frac-work-at-promising-exploration-well-in-alberta-canada-210435.html
<![CDATA[News - Whitebark Energy prepares for horizontal drilling at Wizard Lake Rex well ]]> https://www.proactiveinvestors.com.au/companies/news/210173/whitebark-energy-prepares-for-horizontal-drilling-at-wizard-lake-rex-well-210173.html Whitebark Energy Ltd (ASX:WBE) is preparing to drill a horizontal hole at its Wizard Lake Rex exploration well in Alberta, Canada after setting a 177.8-millimetre intermediate casing.

The well is at 1,410 metres total vertical depth (TVD), or 1,536 metres measured depth (MD) at an inclination of 85 degrees.

Planned total depth is 1,413 metres TVD or 2,724 metres MD.

 

The well has intersected overlying geological markers within 4 metres of prognosis with the most important being the Lower Sparky Coal which immediately overlies the Rex sand and was 1.3 metres low.

The horizontal well trajectory has been adjusted accordingly and the horizontal section is anticipated to be drilled over the weekend.

Prior to ceasing drilling, the uppermost part of the Rex was penetrated, and bottoms-up samples showed strong oil staining, fluorescence with cut and elevated gas readings at four-times background.

Whitebark will post a full report on well results once total depth has been reached and the electric logs have been interpreted.

READ: Whitebark Energy to benefit from Western Australian government’s green light for fraccing

The Rex target at Wizard Lake is the first horizontal well to be drilling in the potentially multi-welled program.

Recent activity in the area has resulted in highly-commercial wells at 250-300 barrels of oil per day at 80% oil.

The target zone in the Point Loma Joint Venture (PLJV) has similar porosity but is thicker than at the Leduc area.

Based on the experience and success of other Rex wells in the area, the PLJV Wizard Lake well will be fracture-stimulated using 20-30 and 35-tonne stages, each focused through individual completion ports.

This method has been shown to optimise exposure to the target zone and production.

READ: Whitebark Energy commences drilling at Wizard Lake

Whitebark is based in Perth with production and exploration assets in Canada and Australia.

The company holds a number of licences varying between 20% and 30% interest in Alberta as part of the joint venture with Point Loma Resources Ltd (CVE:PLX).

The PLJV is an established producer with existing oil and gas processing facilities and pipelines into markets.

Whitebark also holds a 100% interest in the undeveloped Warro Gas Project 200 kilometres north of Perth.

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Wed, 28 Nov 2018 21:01:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210173/whitebark-energy-prepares-for-horizontal-drilling-at-wizard-lake-rex-well-210173.html
<![CDATA[News - Whitebark Energy to benefit from Western Australian government’s green light for fraccing ]]> https://www.proactiveinvestors.com.au/companies/news/210076/whitebark-energy-to-benefit-from-western-australian-governments-green-light-for-fraccing-210076.html Whitebark Energy Ltd (ASX:WBE) has welcomed the findings of the Independent Scientific Panel Inquiry into hydraulic fracture stimulation in Western Australia.

The panel has found that the risks associated with gas extraction techniques are minimal and can be safely managed.

As a result, the legislative impediment to the development of Whitebark’s fully owned Warro Project, located 200 kilometres north of Perth, is now in the process of being lifted by the Western Australian government.

The Warro Project has 4.4 to 11.6 trillion cubic feet (Tcf) of gas-in-place (GIP).

READ: Whitebark Energy is one of the ASX’s newest oil and gas producers

Whitebark managing director David Messina said: “The WA Government should be congratulated for staring down activists who were pressuring it to ignore the science and ban hydraulic fracturing.

“But it should not ignore that same scientific advice by banning the use of this safe technique in certain areas and on new acreage releases.”

 

The WA Government has undertaken to implement all the Inquiry’s recommendations by developing and implementing additional approvals and regulations governing the hydraulic fracturing of exploration and productions wells.

This process is expected to require many months to achieve and therefore any hydraulic fracturing activity in Western Australia may not be able to occur until 2020.

READ: Whitebark Energy commences drilling at Wizard Lake

Whitebark is currently undertaking a multi-stage, hydraulic fracturing program in Canada this month with its joint venture partner.

The program is being undertaken in an active farming area within a strong government regulatory regime.

Fracture stimulation will cost 20% of a similar program in WA and the government approval process was achieved within four weeks of application.

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Wed, 28 Nov 2018 12:37:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210076/whitebark-energy-to-benefit-from-western-australian-governments-green-light-for-fraccing-210076.html
<![CDATA[Media files - Whitebark Energy starts drilling at Wizard Lake project and reacts to major news in Australia ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11336/whitebark-energy-starts-drilling-at-wizard-lake-project-and-reacts-to-major-news-in-australia-11336.html Tue, 27 Nov 2018 13:58:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11336/whitebark-energy-starts-drilling-at-wizard-lake-project-and-reacts-to-major-news-in-australia-11336.html <![CDATA[News - Whitebark Energy commences drilling at Wizard Lake ]]> https://www.proactiveinvestors.com.au/companies/news/209870/whitebark-energy-commences-drilling-at-wizard-lake-209870.html Whitebark Energy Ltd (ASX:WBE) has commenced drilling the Wizard Lake horizontal exploration well within the Point Loma Joint Venture (PLJV) in Alberta, Canada.

The Rex target at Wizard Lake is the first horizontal well to be drilled in a potentially multi-well program.

The well is targeting Cretaceous Rex sands at 1410 metres vertical depth.

The Wizard Lake Rex well will be drilled vertically to 1,150 metres from where hole-angle will be built to achieve a horizontal well 1,200 metres in length in the Rex sands.

READ: Whitebark Energy is one of the ASX’s newest oil and gas producers

Based on the experience and success of other Rex wells in the area, the Wizard Lake well will be fracture stimulated using 20- to 30 35-tonne stages.

This has been shown to optimise exposure to the target zone and production.

The Rex prospect has the potential for 12-14 follow up development wells.

Testing of the well is planned to commence during December.

Whitebark holds a 20% working interest in the well.

Production and exploration assets in Canada and Australia.

Whitebark has a portfolio of production and exploration oil and gas assets in Canada and Australia.

Whitebark holds between a 20% and 30% working interest in the licences which make up the PLJV in the province of Alberta.

Its parter in the PLJV is Point Loma Resources Ltd (CVE:PLX).

Plans for PLJV to increase production 

The PLJV is a well-established producer, with existing oil and gas processing facilities and pipelines into markets.

Whitebark’s aim for the PLJV is for a significant increase in production through acquisitions, the workover and tie-in of behind-pipe reserves and horizontal development drilling.

 

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Mon, 26 Nov 2018 11:47:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209870/whitebark-energy-commences-drilling-at-wizard-lake-209870.html
<![CDATA[News - Whitebark Energy starts earthworks for its first exploration well at Canadian JV ]]> https://www.proactiveinvestors.com.au/companies/news/209524/whitebark-energy-starts-earthworks-for-its-first-exploration-well-at-canadian-jv-209524.html Whitebark Energy Ltd (ASX:WBE) has started earthworks for the Rex well at Wizard Lake, the first of a two-well drilling program planned at the Point Loma Joint Venture in the Canadian province of Alberta.

A rig is expected on site within seven days and the well will take an estimated 14 to 21 days to complete.

The well will target an area where the presence of oil-bearing Rex sands has been confirmed but not exploited by previous wells.

READ: Whitebark Energy is one of the ASX’s newest oil and gas producers

Drilling updates will be provided by the JV partners as the program progresses.

Whitebark holds between 20% and 30% working interest in the joint venture with TSXV-listed Point Loma Resources Ltd (CVE:PLX).

Wizard Lake Rex well will be drilled vertically to around 1150 metres and horizontally from 1400 metres for 1200 metres with 30-plus completion ports to ensure maximum exposure to the target zone.

The Rex target at Wizard Lake will be the first horizontal well drilled in the multi-well program and is analogous to the offsetting Leduc area Rex production, which has attracted the attention of other key industry operators.

READ: Whitebark Energy names Albertan oil prospects as it focuses on Canadian portfolio

Recent activity by other operators in the area has resulted in highly commercial wells (250-300 boepd, 80% oil) as this large oil discovery continues to be exploited.

The target zone of the Rex well lands is thicker and has similar porosity than the Leduc area offset development.

Rex prospect has the potential for 12-14 follow-up development wells.

The JV partners next plan to drill the permitted Wildwood exploration well.

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Tue, 20 Nov 2018 17:21:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209524/whitebark-energy-starts-earthworks-for-its-first-exploration-well-at-canadian-jv-209524.html
<![CDATA[News - Whitebark Energy is one of the ASX’s newest oil and gas producers ]]> https://www.proactiveinvestors.com.au/companies/news/209231/whitebark-energy-is-one-of-the-asxs-newest-oil-and-gas-producers-209231.html Whitebark Energy Ltd (ASX:WBE) is looking forward to spudding wells in Canada and hopes to return to Warro Gas Field in Western Australia if the state’s no-fracking policy is overturned by the government.

The company yesterday outlined at its annual general meeting (AGM) its vision to build itself into a mid-tier oil and gas producer through growth and acquisition.

Whitebark is one of the ASX’s newest oil and gas producers through its 20-30% working interest in its joint venture with Point Loma Resources Ltd (CVE:PLX) in Alberta, Canada.

The Point Loma project asset provides a strong production base of 1,400 barrels of oil equivalent per day (boepd) gross or 320 boepd net.

Production and reserves development is underway with daily net production targeting to surpass 1,000 boepd in the next 12 months.

READ: Whitebark Energy names Albertan oil prospects as it focuses on Canadian portfolio

Whitebark Energy managing director David Messina told Proactive Investors: “Our medium-term objective if we take out to two years, is to grow into a mid-tier oil and gas explorer and producer.

“We have quite ambitious plans to grow the company and we’ll do that by undertaking drilling activities on our existing assets in Canada.”

Two wells will be drilled this year at Point Loma project, the Rex sands horizontal exploration well and the permitted Wildwood exploration was licensed for drilling in December 2018.

Corporate leader Messina said he expects drilling could begin this month.

Messina said: “That (drilling)’s obviously going to lead to further drilling opportunities, which we’ll embark on in 2019.”

The MD confirmed the company was fully funded as it embarked upon the series of drilling programs.

Messina said: “That will provide incremental growth to the business and obviously we’re looking forward to that.”

Whitebark recently collected $2 million cash upfront from its $5 million sale of the Xanadu project in Western Australia to Triangle Energy (Global) Ltd (ASX:TEG).

The company is currently holding $4 million is cash reserves and plans to use proceeds from its Xanadu sale to fund its exploration campaign in Canada.

 

‘Material acquisition’ expected

When Whitebark was previously known as Transerv Energy Limited (ASX:TSV), its flagship project was a fracking project at the Warro Gas Field in Western Australia.

Then, Western Australia’s Labor government moratorium on fracking, or hydraulic fracturing as it is more formally known, interrupted those plans.

Transerv rebadged as Whitebark 16 months ago and then progressed Xanadu project in WA.

Now it’s looking for another project and is talking to debt providers about potential funding proposals.

Messina told Proactive Investors: “We’re also looking for further acquisition opportunities, and now we’ve built a production base in Canada and have relationships we’ve built over the last 12 months, we have been talking to various debt providers.

“We’ll be looking to make a material acquisition in the next six months to fast-track the growth story outside of a modest drilling campaign on our existing acreage.”

READ: Whitebark Energy names Albertan oil prospects as it focuses on Canadian portfolio

Whitebark’s MD emphasized the value of the company’s Duvernay Shale formation acreage in Alberta and the potential upside to the company of its neighbours’ efforts.

Messina said: “Duvernay Shale has been drilled up aggressively around our acreage in Canada.

“As we see those results starting to come in and they are positive, we will see activity in that shale play start to accelerate over the next 12 months.

“That alone has the potential to drive value into our business … driven primarily by our neighbors’ drilling, if you like, on that Duvernay and proving that up.

“When the time is right, we'll obviously be looking at various ways to monetise that.

“That may be drilling a well ourselves, and maybe doing it with a third party, or there may be some type of exit opportunity there on some of those assets that will materially increase in value over the next 12 months as that activity accelerates.”

High-impact potential through Western Australia gas asset

West Perth-based Whitebark is one of a number of junior Australia companies hoping to see a reversal in the WA Labor government’s no-fracking policy.

An independent inquiry known as the Independent Scientific Panel Inquiry into Hydraulic Fracture Stimulation in Western Australia’s gave its recommendations to the WA government on September 12, 2018 on the moratorium after collecting industry and community views.

Industry figures are hoping to see a reversal in the ban, with Messina acknowledging yesterday to Proactive Investors that a lifting in the ban could “company mover” for Whitebark.

The Warro fracking project 200 kilometres north of Perth was originally a joint venture with Alcoa Corp’s (NYSE:AA, BMV:AA1, FRA:185) Alcoa Australia arm.

Warro has a 4.4 to 11.6 trillion cubic feet contingent resource.

Latent Petroleum Pty Ltd, Whitebark’s wholly-owned subsidiary, embarked on the Warro JV 10 years ago, with $95 million being spent on their efforts.

Over the past six months, Whitebark regained a 100% interest in the Warro Gas Field on the Retention Lease 7.

Potential exists to unlock significant value at Warro pending the fracking embargo being lifted.

Messina believes that as Whitebark now holds the entire project, the company will have “the flexibility to move quickly” project on a policy change.

A fracking enquiry report and recommendations is due in the current December quarter of 2018.

— Tharun George, Amanda Ellis

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Wed, 14 Nov 2018 19:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209231/whitebark-energy-is-one-of-the-asxs-newest-oil-and-gas-producers-209231.html
<![CDATA[News - Whitebark Energy names Albertan oil prospects as it focuses on Canadian portfolio ]]> https://www.proactiveinvestors.com.au/companies/news/209059/whitebark-energy-names-albertan-oil-prospects-as-it-focuses-on-canadian-portfolio-209059.html Whitebark Energy Ltd (ASX:WBE) and joint venture partner Point Loma Resources Ltd (CVE:PLX, FRA: 2LP, OTCMKTS:FMTNF) hope to spud two high-impact exploration wells this quarter after the Australian company narrowed its immediate focus to Canada.

The two wells at Point Loma project in the Canadian province of Alberta are targeting 70 million barrels of oil equivalent (BOE).

West Perth company Whitebark reported today the Rex sands horizontal exploration well would be spudded within 30 days while the permitted Wildwood exploration well was licensed for drilling in December 2018.

Two Well Drilling Program Targets 70 million BOE — https://t.co/UWsTostj1x pic.twitter.com/tT9aE7nRB4

— Whitebark Energy Ltd (@whitebarkenergy) November 13, 2018

Whitebark Energy managing director David Messina said, “We are very pleased to be able to finish the year with a drilling campaign which with any level of success will significantly increase production and reserves and move the company towards being cashflow positive at a group level.”

The explorer and producer sold out of its Xanadu project in Western Australia for $5 million so it could focus on its Canadian portfolio of projects

David Messina, MD provides insight for investors in a Proactive Investor Interview (25/10/18) and the recent Investor Webinar & Q&A (31/10/18) both available on the WBE website. https://t.co/DFezfHy1JL

— Whitebark Energy Ltd (@whitebarkenergy) November 5, 2018

Whitebark’s MD Messina spoke to Proactive Investors’ Stocktube channel last month, saying the company’s decision to divest of the “exciting” Western Australian Xanadu project where it found oil with joint ventures partners was not about the project or its size.

Messina said, “It wasn’t about the field, it really is about timing and where we can expect returns.

“We’ve got $4.5 million in the bank now and more coming — it’s not a huge amount of money but it can go a long way in Canada, a lot further than it can here in Australia and certainly Western Australia.”

 

Whitebark can continue to benefit from its Xanadu divestment to Triangle Energy (Global) Ltd (ASX:TEG) through the stock it holds in the buyer and from performance payments on first commercial oil production.

Messina highlighted Whitebark had held onto the early-stage asset long enough to ensure it would benefit both from its future development and the $2 million upfront capital its sale freed up.

Whitebark also received a 5% or 11,191,052-share stake in Triangle as part of the initial transaction.

Whitebark’s stake in Triangle which raised $1.25 million in a placement announced today was worth $760,991.54 at the Xanadu buyer’s 6.8-cent closing price today.

READ: Whitebark Energy sells Xanadu oil discovery for $5 million, retains first oil bonus

Messina said, “(Whitebark) just believed because we have the option of deploying capital into Canada, whereby we can permit and drill a well within two months, that it’s better use of what is limited capital within the junior oil-and-gas end of the market

“That it is better capital for us to deploy into projects that will just return us an outcome in a much quicker time frame.”

READ: Whitebark Energy welcomes plan to build C$40 billion LNG export terminal in Canada

Whitebark is thinking ahead to its plans for the next 18 months.

Messina said, “Over the next six to nine months, both production will increase, with our drilling program, and also as we start to drill these exploration opportunities up, obviously it starts to materially-change the size of the company.”

Whitebark has a market capitalisation of $3.15 million.

The company’s securities closed up 0.2 cents, or 100%, to 0.4 cents today.

— With Ky Chow

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Tue, 13 Nov 2018 01:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209059/whitebark-energy-names-albertan-oil-prospects-as-it-focuses-on-canadian-portfolio-209059.html
<![CDATA[Media files - Whitebark Energy sells Xanadu to focus on Canada ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10996/whitebark-energy-sells-xanadu-to-focus-on-canada-10996.html Fri, 26 Oct 2018 11:32:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/10996/whitebark-energy-sells-xanadu-to-focus-on-canada-10996.html <![CDATA[News - Whitebark Energy sells Xanadu oil discovery for $5 million, retains first oil bonus ]]> https://www.proactiveinvestors.com.au/companies/news/207798/whitebark-energy-sells-xanadu-oil-discovery-for-5-million-retains-first-oil-bonus-207798.html Whitebark Energy Ltd (ASX:WBE) has executed a sale and purchase agreement to sell its 15% interest in TP-15 – the Perth basin permit containing the Xanadu oil discovery – to Triangle Energy (Global) Ltd (ASX:TEG) for up to $5 million.

The agreement structure allows Whitebark to retain exposure to any commercial success at Xanadu, with a $1 million first oil bonus to be paid on first commercial production.

Whitebark intends to invest initial sale proceeds into new Canadian oil projects where exploration opportunities of over 100 million barrels of oil have been identified.

The Perth-based oil and gas explorer is also progressing negotiations to acquire a new Canadian oil asset.

‘Potential to materially change the company’

Whitebark managing director David Messina said: “While it was a difficult decision to exit Xanadu, we are fortunate that we can quickly invest capital into projects in Alberta, Canada, where costs are much lower, project approvals significantly quicker and the likelihood of timely and substantial commercial returns more predictable.

“In addition, by the nature of the transaction with Triangle, we have maintained exposure to any success at Xanadu via Triangle stock and agreed milestone payments.

“Whitebark will have over $4 million cash to invest in drilling programs and strategic acquisitions in Canada which have the potential to materially change the company within the next six months.

“Whitebark and its Canadian JV partner, Point Loma Resources (TSX-V:PLX), have been in negotiations to purchase production assets with development upside with financial metrics consistent with the company’s previously announced acquisition criteria.”

READ: Whitebark Energy welcomes plan to build C$40 billion LNG export terminal in Canada

An upfront consideration of $3 million will be paid to Whitebark by Triangle, consisting of $2 million in cash and $1 million in TEG stock amounting to 11,191,052 shares or about 5% interest.

A further $1 million will be paid following an independent competent person’s report demonstrating that total 2P and 2C reserves exceed 8 million barrels within four years, payable entirely in cash or split between cash and Triangle shares.

A 2P reserve is a proven and probable reserve while 2C is the best estimate of contingent resources.

The $1 million first oil bonus payment requires the sale of more than 1,000 barrels of oil produced from TP-15 within seven years of the transaction date. 

Assets in Canada and Australia

Whitebark holds production and exploration assets in both Canada and Australia, with a 20-30% working interest – varied across permits – in the Point Loma joint venture through its Canadian subsidiary Salt Bush Energy Ltd. 

It also holds a 100% interest in the 4.4-11.6-trillion-cubic-feet undeveloped Warro Gas Project 200 kilometres north of Perth through its wholly-owned subsidiary Latent Petroleum.

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Wed, 24 Oct 2018 21:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207798/whitebark-energy-sells-xanadu-oil-discovery-for-5-million-retains-first-oil-bonus-207798.html
<![CDATA[News - Whitebark Energy welcomes plan to build C$40 billion LNG export terminal in Canada ]]> https://www.proactiveinvestors.com.au/companies/news/206255/whitebark-energy-welcomes-plan-to-build-c40-billion-lng-export-terminal-in-canada-206255.html Whitebark Energy Ltd (ASX:WBE) has welcomed the decision by LNG Canada to build a C$40 billion LNG (liquefied natural gas) export terminal at Kitimat, British Columbia on the west coast of Canada.

LNG Canada is a consortium which includes Shell, Petronas, Kogas, Petrochina and Mitsubishi.

The export terminal is expected to open up Canada to gas export opportunities, stimulate new demand for gas supply and shift domestic gas pricing towards international parity.

The LNG Canada facility will initially liquefy and export 13 million tonnes per annum (mtpa), or the equivalent of 3.5% of global LNG supply in 2017, potentially expanding to 28 mtpa.

Whitebark Canadian assets and associated major pipeline infrastructure

It is worth noting that Whitebark’s fields are about 600 kilometres to the east of the new pipeline to Kitimat and will be connected to the export facility by a series of interconnected pipelines.

Whitebark managing director David Messina said although most of the initial gas was likely to be supplied by the LNG Canada partners, the construction of the new facility would reduce supply into Whitebark’s traditional markets resulting in stronger gas prices in the domestic market.

READ: Whitebark Energy confirms oil discovery in Western Australia waters

Messina added: “Of particular near-term importance to Whitebark, the construction of LNG Canada’s Kitimat terminal introduces attractive alternate pricing mechanisms for Western Canadian gas, which is likely to lead to export parity, with associated re-rating of asset values, similar to what has been seen with LNG in Queensland.

“Whitebark has been securing reserves, production, development and exploration assets while prices have been depressed and any increase in the gas price will have a positive impact on Whitebark’s assets.

“Our existing production and the emerging Duvernay shale play is an obvious beneficiary as other companies step-up their exploration and development activity to increase reserves.”

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Wed, 03 Oct 2018 15:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/206255/whitebark-energy-welcomes-plan-to-build-c40-billion-lng-export-terminal-in-canada-206255.html
<![CDATA[News - Whitebark Energy confirms oil discovery in Western Australia waters ]]> https://www.proactiveinvestors.com.au/companies/news/184464/whitebark-energy-confirms-oil-discovery-in-western-australia-waters-184464.html Whitebark Energy Ltd (ASX:WBE) has confirmed the reservoir quality of its Xanadu-1 conventional oil well in TP/15, a permit located 1.3 kilometres offshore Western Australia.

The company holds a 15% interest in the TP/15 joint venture along with Norwest Energy (ASX:NWE) (operator, 25%), Triangle Energy (Global) Ltd (ASX:TEG) (30%) and 3C Group IC (30%).

Since the last report, a suite of logs over a 330 metre section of the well have been acquired by the service provider Schlumberger (NYSE:SLB).

This logging has delineated net and gross reservoir sections within the well, providing greater understanding of the reservoir characteristics and yielded quality oil samples.

Importantly, reservoir quality sand intervals were encountered throughout the section with porosities generally ranging from 15% to 16%.

Furthermore, seismic data indicate that it is possible to drill an up-dip location which could allow the higher quality sand units deeper in the section to be penetrated above the inferred oil-water contact.

The rig is currently in the process of suspending the well.

Based on the results, and armed with much greater knowledge, the joint venture is planning to drill an up-dip side-track appraisal well, with the potential to be completed as a commercially producing well.

The operator is in the process of lodging a discovery notice with the Minister for Mines, Industry Regulation and Safety.

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Mon, 25 Sep 2017 10:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/184464/whitebark-energy-confirms-oil-discovery-in-western-australia-waters-184464.html