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 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.