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Whitebark Energy confirms commercial oil discovery at Wizard Lake

The well was drilled at the Rex target within the Point Loma Joint Venture (PLJV), Canada.
Rex oil well in Canada
The company has a 30% interest in the well and lands associated with the discovery

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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