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Whitebark Energy Ltd

Whitebark Energy’s Wizard Lake Rex-2 well kicks off with high flow rates

After the successful completion of Rex-2, Whitebark’s working interest in the Wizard Lake oil development in Canada will increase to 40% from 30%.

Whitebark Energy Ltd - Whitebark Energy’s Wizard Lake Rex-2 well kicks off with high flow rates
Drilling operations at Rex-2 on the Wizard Lake oil field in Alberta, Canada

Whitebark Energy Ltd’s (ASX:WBE) Wizard Lake Rex-2 well in Canada has been completed on time and on budget and is undergoing initial flow back operations with encouraging initial oil and gas rates.

The well, which is flowing unassisted at high rates, is undergoing initial clean up flows with over 25% of the frac fluids already recovered and significant amounts of oil and gas noted at surface.

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

Initial rates higher than Rex-1

However, the well is now flowing unassisted at rates higher than those experienced at Rex-1, which underlines the excellent reservoir quality penetrated by Rex-2.

This new well has also resulted in the start of oil and gas at surface earlier in the flow back period than Rex-1.

Whitebark’s managing director David Messina said: “Our team, in Calgary and on-site, has done a fantastic job getting Rex-2 drilled and production-ready.

“Achieved under budget”

“This was achieved under budget despite the rain delays and we now look forward to updating the market on flow rates in the very near future.”

Testing of Rex-2 will begin once the well stabilises and is connected to the adjacent pipeline and processing facilities.

An update on initial production volumes will be provided once the well has stabilised.

Messina added: “The successful drilling of the well not only demonstrates our operating credentials but also marks the increase in our interest in the field to 40%.”

Trading at 12-month high

Whitebark is trading at its 12-month high of 0.9 cents.

The Wizard Lake oil field in Alberta was identified using well control and seismic together with geology and has the potential to contain 20-plus wells targeting 11mboe.

A development program began with the spudding of the horizontal Rex-1 well on November 24, 2018.

Initial flow testing of Rex-1 well returned rates of more than 300 barrels of oil per day.

Total oil produced from the 16-day flow test was 2845 barrels, which was a 55% increase on initial estimates.

Production facilities and a pipeline were completed in early June 2019 and Rex-1 began pumping fluids on June 5, 2019.

Whitebark’s working interest in the Wizard Lake oil development is at 40% and will increase to 50% following the drilling and completion of Rex-3.

Quick facts: Whitebark Energy Ltd

Price: $0.01

Market: ASX
Market Cap: $17.67 m
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Full interview: Whitebark Energy updates on Wizard Lake activity with Rex-2...

Whitebark Energy Ltd (ASX:WBE) managing director David Messina updates Proactive on Rex-2 well at the Wizard Lake Project in Canada with results exceeding initial expectations. Rex-2 was drilled and fracced in August and tested in September 2019.  The managing director said the strong...

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