Strategy

“Growth Through Disciplined Execution”

Build a high margin production base through unlocking stranded production and drilling wells on existing assets and by the acquisition of complementary assets. Whitebark plans to continue to grow its Canadian assets during FY2019 following successful acquisition and production growth in FY2018.

Planned Activities in FY2019

A busy work program is planned for 2019:

  • Two development wells in Wizard Lake Rex oil pool. First Development Well Rex-2 – Completed and successful, 6 September- see announcement
  • Wizard Lake Facility Construction and tie-in of Discovery Well Rex-1 – Completed 5 June 2019 – see announcement
  • Payback between 9 and 18 months.
  • Facility upgrades at Paddle River oil field to reduce cost and increase profitability.

Activities Since Acquisition in July 2017

  • Doubled net production since acquisition and almost tripled net reserves (proven + probable) in the same timeframe.
  • Gilby Acquisition of approx. 26,500 gross acres of land and 450 boe/d production finalised in March 2018.
  • Drilled two wells in 2017 and two well drilling program confirmed for H1 2018.
  • Acquired 13 new sections land via land auction system.
  • Acquired strategic land around core Paddle River Oil Project, including stranded wells and equipment.
  • Thornbury Reactivation Project Commenced – should increase production by 1.7mmcf/d.
  • Nine well workovers in existing producing areas.
  • LOI executed with Tidewater Paddle River Gas Plant to process gas through their 60mmcf/d deepcut facility.
  • 15‐20 wells to be brought back on stream over a six‐month period  in 2018 as pipelines are recommissioned – gross production is expected to increase by around 2 mmcf/d and 100 bbl/d of liquids.
  • 3D Seismic Acquisition Program over Banff play identified potential 40 million bbls oil in place (8.4 mmboe net to WBE).
  • Duvernay Shale land rush around WBE land holding in Canada.

The table below outlines the 1P and 2P reserves held in Canada net to WBE as published in the Reserves & Resources Update 22 August 2019.

History

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 for an investment of CAD$4.2 million.  The acquisition includes producing wells, land, property, equipment and production facilities (for full details, see ASX announcement dated 24 May 2017 under Investor Centre).

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.