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Whitebark Energy steps up flow rates at Rex-3 well

Snapshot

The Wizard Lake project development in Canada has been fast-tracked thanks to a $3.8mln capital raising back in September

Whitebark Energy Ltd - Whitebark Energy progresses to drilling horizontal section of Rex-3 well

Quick facts: Whitebark Energy Ltd

Price: 0.009 AUD

ASX:WBE
Market: ASX
Market Cap: $27.23 m
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What it owns

Whitebark Energy Ltd (ASX:WBE) is a Perth-based oil and gas producer and explorer, which operates in Canada and Western Australia.

In Canada, the company holds between 20% and 30% working interest (varies by license) in the Point Loma Joint Venture (PLJV) in the province of Alberta with TSXV-listed Point Loma Resources Limited, which includes the Wizard Lake project.

Whitebark’s aim for the PLJV is to significantly increase production and the lower costs through the workover and tie-in of behind-pipe reserves and horizontal development drilling.

In Western Australia, the company wholly owns the 4.4-11.6tcf undeveloped Warro Gas Project, about 200km north of Perth, through its subsidiary Latent Petroleum.

How it's doing

Back in September, it completed a $3.8mln capital raising to fast-track the Wizard Lake project development in Canada.

A share placing to institutional, sophisticated and professional investors saw shares issued at an 18% discount to the volume-weighted average market price (VWAP) for the shares over the last five days on which sales were recorded.

In December, it received initial pump assisted flow rates from the recently drilled Rex-3 well within the Wizard Lake Project in Canada, averaging 1,278 barrels of oil equivalent (boe) per day including 1,084 barrels of oil per day in the final 6 hours of a continuous 18 hour period.

The initial flow rates for Rex-3 were substantially greater than those seen in the previous Rex-1 and Rex-2 wells.

Rex-3 is the third of a potential 20+ wells

The Wizard Lake Oilfield has the potential to contain over 24 wells targeting 11 million barrels of oil equivalent.

Drilling of the third well Rex-3 follows the recent commencement of construction work to expand processing facilities at Wizard Lake.

The expanded facilities will be capable of handling 5,000 barrels of fluid a day along with 5 million cubic feet per day (mmcfd) of gas.

The expansion is supported by the success of the Rex-1 and Rex-2 wells.

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Full interview: Whitebark Energy completes $3.8 million capital raising to...

Whitebark Energy Limited (ASX: WBE) managing director David Messina updates Proactive on the completion of a $3.8 million capital raising to fast-track the Wizard Lake project development in Canada. The new funds will mainly be used to accelerate the upgrade of infrastructure to handle the...

on 26/9/19

2 min read