Cuts include reducing directors’ fees and salaries by 50%.
Whitebark’s chairman Charles Morgan said: “I would like to thank the Whitebark team, both in Australia and Canada, for working with us during this difficult time.
“Whitebark has a great low-cost asset in the Wizard Lake Oilfield and great people.
“With their support, the business will be well placed to benefit from any recovery in the oil price.
“By moving quickly and decisively we are preserving our ability to benefit from improved oil prices. Until that happens, we will bunker down to optimise our resources to ensure we are in the best position possible for the future.”
CAD$7.50 per barrel costs
Managing director David Messina added: “Whitebark is in the fortunate position that it is operating in a low-cost oilfield.
“The company had already reduced direct operating costs (excluding royalties) to CAD$7.50/barrel at 600 bopd production rates.
“Importantly, Whitebark has the ability to increase production when the returns provide incentive to do so, as well as to drill more wells.”
Rex-4 well delayed to June quarter
Prudently, Whitebark has delayed the drilling of the Rex-4 well until the June quarter or until oil prices improve.
As all the necessary approvals have been received, the timing of the next well can be varied to suit company circumstances and could be accelerated or delayed depending on economic circumstances.