- Whitebark has completed a $3.8 million capital raising plan to fast-track development at its Wizard Lake project in Alberta, Canada
- The funds raised will expedite drilling of a new well, Rex-3, and subsequently earn Whitebark 50 per cent interest in the project
- The need for the additional funds came after the Rex-2 well at wizard lake yielded some unexpectedly high oil and gas flows, prompting Whitebark to fast-track the next stage of development
- Almost half a billion new shares will be issued at 0.8 cents each to raise the necessary funds
Perth-based energy company Whitebark has completed a $3.8 million capital raising plan to fast-track development at its Wizard Lake project in Alberta, Canada.
The funds raised will primarily be used to speed up drilling of a new well, Rex-3, and subsequently earn a 50 per cent interest in the project. This comes in the light of success at the Rex-2 well, which struck unexpectedly high oil and gas flows.
As such, surface production facilities reached capacity at the project earlier than planned.
The funds will be raised through the issue of nearly half a billion new shares at 0.8 cents apiece, which represents an 18 per cent discount on the 5-day volume weighted average price of 0.98 cents per share.
Along with the placement, Whitebark will also take up a share purchase plan in which eligible subscribers can apply for $30,000 worth of new shares at the same price as the placement.
Whitebark Managing Director David Messina welcomed new shareholders and said the capital raising will help the company execute on its growth strategy.
“Whitebark’s Wizard Lake development plan included modular pipeline and surface infrastructure to process increased oil rates and monetise associated gas production as we drilled more Rex oil wells, but the high oil rate and exceptionally strong gas flow from Rex-2 has brought forward this requirement,” David explained.
“Current oil market conditions have also unexpectedly improved in the short term, so we have taken this opportunity to fast track our whole program – to build a pipeline now, bring forward Rex-3 and provide additional flexibility to pursue corporate growth opportunities,” he said.
Whitebark shares have remained steady today, continuing to trade close to the price of the share placement. As of 1:42pm AEST, Whitebark shares are worth 0.9 cents each in a $17.67 million market cap.