In May 2017, Whitebark, via its Canadian subsidiary Salt Bush Energy Ltd, completed an acquisition of a 20% direct interest in the assets of Point Loma Resources (Point Loma) for an investment of CAD$5 million (circa AUD$4.9 million). The acquisition includes producing wells, land, property, equipment and production facilities (for full details, see ASX announcement dated 23 May 2017).
In the past nine months Point Loma gross production has reached 900 boe/d (25% liquids), up from 135 boe/d, and hold Net Producing Reserves of 3.9 MMboe and 2P reserves of 4.98 MMboe (see Table 1). WBE net production is currently over 150 boe/d and tolling income through ~70MMcf/d gas plant (50MMcf/d spare capacity), compressors, tank farms, production facilities, pipelines and associated infrastructure.
Point Loma has captured a significant land position with over 210,000 net acres over a highly productive and prospective portion of West Central Alberta which has multiple oil and gas zones ranging in age from the Cretaceous Mannville to Mississippian Banff.
Modest drilling depths throughout and technological advancements associated with horizontal drilling, leads to strong economic returns due to low-cost wells and close proximity of production facilities and easy access to market.
Whitebark and Point Loma have finalized the work program for the six months, H2 of 2017. This program will include drilling of wells, well workovers, well tie-ins and the acquisition of additional producing properties. A particular focus of future work will be bringing online previously stranded wells which can now be brought on line through the Joint Venture’s pipeline system.
All the investment funds must be spent “in the ground” for bringing on shut-in production, recompletions, production cost efficiencies and drilling activities or to acquire additional assets. Work done by Point Loma has identified over 300 drilling and recompletion opportunities. Point Loma has also identified numerous production acquisition opportunities which will complement its existing holdings and result in not only increased production and reserves but also drive down operating costs due to additional throughput and operating synergies.
Through the Strategic Joint Venture, Point Loma and Whitebark will strive to increase the value of the existing assets and work together throughout Alberta to add new assets to create substantial additional shareholder value.
The table below is taken from Point Loma Resources Limited’s recent year end reserve update released to the market on 27 February 2017. The update was carried out by independent Canadian Oil and Gas Consultant, McDaniel and Associates Limited. The table was then extrapolated to reflect Net Reserves to Whitebark post transaction.
The Qualified Reserves and Resources Evaluator Statement
The information in this report that relates to the oil and gas reserves of Point Loma Resources Ltd was compiled by technical employees of McDaniel and Associates Ltd a leading independent Canadian Petroleum Consulting Firm, and subsequently reviewed by Mr Stephen Keenihan BSc (Hons) Geology/Geophysics, whom have consented to the inclusion of such information in this report in the form and context in which it appears. Mr Keenihan is consulting to the Company and has more than 40 years relevant experience in the petroleum industry and is a member of The Society of Petroleum Engineers (SPE). The reserves included in this report have been prepared using definitions and guidelines consistent with the 2007 Society of Petroleum Engineers (SPE) / World Petroleum Council (WPC) / American Association of Petroleum Geologists (AAPG) / Society of Petroleum Evaluation Engineers (SPEE) Petroleum Resources Management System (PRMS). There sources information included in this report are based on, and fairly represents, information and supporting documentation reviewed by Mr Keenihan. Mr Keenihan is qualified in accordance with the requirements of ASX Listing Rule 5.41 and consents to the inclusion of the information in this report of the matters based on this information in the form and context in which it appears.
This presentation includes certain statements that may be deemed ‘forward-looking statements’. All statements, other than statements of historical fact, that refer to any future production, resources or reserves, exploration results and events that Whitebark Energy Ltd (‘ASX: WBE or ‘the Company’) expects to occur are forward-looking statements. Although the Company believes that the expectations in those forward looking statements are based upon reasonable assumptions, such statements are not a guarantee of future performance and actual results or developments may differ materially from the outcomes. This may be due to several factors, including market prices, exploration and exploitation success, and the continued availability of capital and financing, plus general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance, and actual results or performance may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
 Barrels of Oil Equivalent based on 6:1 for Natural Gas, 1:1 for Condensate and C5+, 1:1 for Ethane,1:1 for Propane, 1:1 for Butanes.
 Pro-forma reserves – The above table is a summary of the combined estimated reserves as at December 31, 2016, based on the McDaniel reserve estimates of Point Loma, the Judy Creek properties and Ascent