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Whitebark Energy lowers opex to C$7.50 per barrel

With oil prices dropping, the company has been proactive in lowering operating costs to remain sustainable and competitive.

Whitebark Energy Ltd - Whitebark Energy lowers opex to C$7.50 per barrel
The Wizard Lake Oilfield has the potential to contain 24+ wells targeting 11 million boe

Whitebark Energy Ltd (ASX:WBE) has taken immediate steps to maximise the long term returns from its Wizard Lake Oilfield in Canada.

As a result of measures the better manage the oil and gas resource is the lowering of operating costs to C$7.50 per barrel of oil.

During the current period of lower oil prices, Whitebark has constrained production to between 550-650 barrels of oil per day (bopd) and 3-4 million cubic feet of gas per day (mmcfd).

This equals around 1050-1315 barrels of oil equivalent per day (boepd).

The lower production level will still continue to generate significant cash flow for the company.

Whitebark capable of remaining profitable

Whitebark’s managing director David Messina said: “With the recent low oil price environment we have been absolutely focused on costs and at C$7.50 per barrel oil we are in a good position to ride out the current situation.

“That being said, we only get to sell a barrel of oil once, so we will be maintaining a production level that reflects a balance between pricing and good oilfield practice.

“The low operating costs in Alberta combined with the proximity of the Wizard Lake Oilfield to major gas and oil facilities provides the company with the capability to continue profitable production at low oil prices.”

Opportunity to lower costs further

Further reductions in fixed costs of around $2 per barrel have been identified which would involve acquiring rental equipment instead of leasing it.

Whitebark is currently exploring the cost-benefit of undertaking this exercise.

Quick facts: Whitebark Energy Ltd

Price: 0.005 AUD

ASX:WBE
Market: ASX
Market Cap: $15.13 m
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