Whitebark Energy Ltd (ASX:WBE) increased oil & gas net 1P reserves at Wizard Lake in Canada during the 12 months to June 30, 2020, by more than 250% to 2.8 million barrels of oil equivalent (MMBOE), comprising 1.3MM bbls oil and 7.8 MMcf gas.
This encouraging result was revealed in the company's annual reserve and resource update and comes after selling non-core assets, acquiring new leases over the oilfield area as well as increasing ownership percentage in the oilfield.
Contingent resources (2C) at Wizard Lake Oilfield add a further 3.8 MMBOE, comprising 1.9 MM bbls oil and 9.9 MMcf gas with combined 2P and 2C presenting a significant opportunity for Whitebark, totalling 9.4MMBOE.
Whitebark will seek to continue to increase its reserves through a combination of low-risk exploration, development and acquisition.
“250% increase in reserves”
Whitebark managing director David Messina said: “Whitebark is very pleased with the success at the Wizard Lake Oilfield where a 250% increase in the company’s reserves has been achieved even with severely discounted pricing assumptions.
“With the active work program over the last 12 months we have upgraded all key reserve categories and we still have 3P and prospective categories to further quantify over the next 12 months.”
As at June 30, 2020, the company experienced a 300% increase in proven (1P) oil reserves to 2.8 million barrels of oil equivalent (1.3 million barrels of oil and 7.8 million cubic feet of gas).
The probable (2P) oil reserves have increased over 400% to 2.687 million barrels.
Contingent resources (1C) add a further 748,000 barrels of oil and contingent resources (2C) add a further 3.8 million barrels of oil equivalent (1.9 million barrels of oil and 9.9 million cubic feet of gas).
While the company is confident that further 3P and prospective resources are likely to exist at the periphery of the field, they have not been assessed in the current analysis.
Whitebark reserves as at June 30, 2020.
During the last 12 months, the company has successfully drilled two wells, significantly expanded the original facilities and acquired and built additional gas pipelines.
Whitebark believes the reserve increases were achieved as a result of the successful drilling program, the acquisition of new leases over the oilfield area, and an increase in average ownership percentage in the oilfield.
Wizard Lake Oilfield in Alberta accounts for 100% of the reserves of the company, following the sale of non-core assets in December 2019
The average working interest in the oilfield is now 84% (up from 30% working interest).