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Whitebark Energy renews lease over 713 hectares at Wizard Lake Oilfield as oil price rebounds

Whitebark continues to be entitled to 100% of Rex-1, and 85% of Rex-2 and Rex-3 production until capex payout of the well costs.

Whitebark Energy Ltd - Whitebark Energy renews lease over 713 hectares at Wizard Lake Oilfield as oil price rebounds
The company holds a 100% interest in all processing facilities and pipelines

Whitebark Energy Ltd’s (ASX:WBE) subsidiary SBE has renewed a lease over three sections (713 hectares) of the Wizard Lake Oilfield (WLO) in Canada, cementing its tenure and assumed operatorship.

The lease is for an initial term of 18 months, during which SBE has the option to drill a well which would extend the term of the agreement to three years after which time the mineral rights are held by production.

The total consideration for the lease is C$238,085, comprising an upfront payment of C$113,363, and a further C$124,722 due at the end of the initial 18-month term.

Rebound in oil prices

The oil price has doubled since April as OPEC+ cuts trimmed a global glut and demand staged a rebound after the easing of restrictions in some countries, particularly China.

SBE continues to receive 100% of production from Rex-1 until payout and has an entitlement to 85% of production in Rex-2 and 3 until payout.

SBE continues to hold 100% working interest in all facilities, pipelines, and infrastructure and 60 to 100% working interest in the mineral rights (varies by section).

Whitebark managing director David Messina said “Whitebark is pleased to have renewed its tenure over a major part of the Wizard Lake Oilfield.

“With the rebound in oil prices, Whitebark is working on increasing its production from the existing three wells and to financing the Rex-4 well.”

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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...

on 6/7/20

2 min read