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.
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.”