- Whitebark Energy (WBE) has increased its interest in the Wizard Lake Oilfield to 60 per cent after completing stage 1 of the transaction
- Stage 1 saw the company purchase an additional 10 per cent in the project for $1.3 million taking its share from 50 to 60 per cent
- The second half will see Whitebark purchase the remaining 40 per cent before March 31 2020, through the payment of $3 million and $2.1 million in shares
- Wizard Lake will continue to be developed through 2020 after the third well, Rex-3, was completed
- Whitebark’s share price is steady today with shares trading for 1.3 cents apiece
Whitebark Energy (WBE) has increased its interest in the Wizard Lake Oilfield to 60 per cent after completing stage 1 of the transaction.
Stage 1 saw Whitebark acquire an additional 10 per cent in the project from point Loma for C$1.2 million (A$1.3 million), thus taking its share from 50 to 60 per cent.
The second and final stage will see Whitebark acquire the remaining 40 per cent before March 31 2020, through the payment of C$2.8 million (A$3 million) in cash and C$2 million (A$2.1 million) in Whitebark shares.
Whitebark will continue developing Wizard Lake throughout 2020 after recently completing its third well, Rex-3 on the project.
Initial production facilities and an infield pipeline were completed in early June 2019, and Rex-1 began producing on June 5, 2019.
Rex-3 was drilled to 3673mMD in eight days and averaged 1278 barrels of oil equivalent per day (boepd) including 1084 barrels of oil per day in the final six hours of a continuous 18-hour period.
The second well, Rex-2, was drilled and fracked in August and tested in September 2019 with a peak production rate of 865 barrels of oil per day. This was before the well had to be constrained due to an obstruction which was recently removed.
An upgrade to production facilities commenced in November 2019 and included a 3 kilometre gas pipeline to connect to local gas networks and an upgrade of the modular processing facilities to ensure high gas and oil production rates can be managed.
Through these three successfully drilled wells, the Wizard Lake Oilfield has been significantly de-risked and sole ownership offers an excellent opportunity for Whitebark to optimise development and build a platform for growth and strong cashflows.
This is reinforced by the recent drilling success at Rex-3, and the commissioning of the enlarged and upgraded production facilities at the field.
“We are pleased to have delivered on another strategic objective for 2019 with the closing of the first stage of our 100 per cent acquisition of Wizard Lake,” Whitebark Managing Director David Messina commented.
“With the three oil wells now producing, we enter 2020 in a very strong position,” he added.
Whitebark’s share price is steady today with shares trading for 1.3 cents apiece at 1:55 pm AEDT.