The primary focus of the JV has been on the development and optimisation of existing oil pools. A disciplined and pragmatic technical approach in nearby areas has uncovered robust exploration potential. The JV exploration drilling program is currently focussed the Rex (Upper Mannville) oil play. The successful drilling and testing of the Wizard Lake Rex well re-directs the immediate focus in CY2019 to the continued development of the Rex field as outlined below.
Wizard Lake Rex – Rex-1 Oil Discovery (WBE 30% WI)
The Wizard Lake Rex well was spud on the 24 November 2018 and, following a 27 stage fracture stimulation program, the well commenced cleanup flows on December 24th.
Initial flow testing of the Wizard Lake Rex horizontal oil well recorded production rates of more than 300 barrels of oil per day prior to the completion of testing. Following reconciliation of the hydrocarbons produced from the January 2019 flow test of its Wizard Lake Rex well, the total oil produced from the 16‐day flow test has been increased from 1833 barrels of oil to 2845 barrels – a 55% increase. This increase in total testing volumes would very likely mean that daily production, when the well is brought on line, will be higher than initially forecast.
On the 15th March 2019 the company announced net reserves as at 31 December 2018 for the Wizard Lake Oil Pool in Canada (incorporating the Rex Discovery well) have been assessed by McDaniels and Associates
- 1P (proved) reserves of 132,000 bbls
- 2P (proved plus probable) reserves 225,000 bbls
Further revisions will be undertaken once the well has been placed on permanent production.
On 22 March 2019, WBE announced that the 2019 Wizard Lake development program will encompass the construction of a pipeline and installation of initial production facilities on a multi‐well pad in the next 1 to 2 months and the drilling of two new Wizard Lake wells this calendar year.
Construction will commence in Q2 2019 on the multi‐well pad and associated facilities, followed by the pipeline on receipt of final licence. This will enable the Wizard Lake Rex‐1 well to be brought into commercial production in April, subject to weather conditions during spring break up. The modular production and processing facility will be located 1.6 km NW from the Rex‐ 1 well. It will have the capacity to service additional Rex wells as they are brought into production. All necessary landholder approvals have been received, clearing the way for the three week construction program once the weather enables access.
In its Wizard Lake reserves update announced to the ASX on 15 March 2019, Whitebark indicated the likelihood of 12‐17 gross well locations in the oil pool. The Company is finalising development plans for the next two wells in the pool, Rex‐2 and Rex‐3 with drilling of Rex‐2 targeted for mid‐2019. Rex‐2 is situated to the north of Rex‐1 and on the same location as the new Rex facilities.
Independent operation notices have been filed for the two new wells at Wizard Lake with Whitebark now qualified as an Operator in Alberta, Canada, and will undertake the drilling program if its joint venture partner elects not to participate.