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Whitebark Energy bunkers down and cuts costs for sustainability

The company produces oil from three wells at the Wizard Lake Oilfield in Canada which could host 20+ more wells.

Whitebark Energy Ltd - Whitebark Energy Ltd bunkers down and cuts costs for sustainability
Board fees and salaries have been cut 50%

Whitebark Energy Ltd (ASX:WBE) is combating low oil prices and the COVID-19 pandemic by cutting overhead costs.

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.

Quick facts: Whitebark Energy Ltd

Price: 0.004 AUD

ASX:WBE
Market: ASX
Market Cap: $12.55 m
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Whitebark Energy raising funds to support field development and production...

Whitebark Energy Ltd's (ASX:WBE) David Messina provides an update on the company's Wizard Lake Operations in Canada and the current partially underwritten entitlement issue to raise $A3 million announced last week. These funds will support Wizard Lake improvements and land...

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