Working Interest of Wizard Lake Oilfield at 8 June 2020 – 100%

Strategy

“Growth Through Disciplined Execution”

Build a high margin production base through development of the Wizard Lake Oil Field and by the acquisition of complementary assets. Whitebark continued to grow its Canadian assets during FY2020 by increasing its working interest in Wizard Lake to 100% through the acquisition of Point Loma’s assets.

Planned Activities in FY2022

  • Manage production rates of Rex-1, 2 and 3 in light of current strong commodity prices.
  • Implement infrastructure projects to minimise costs, facilitate increased production, and increase reserves.
  • Implement short-term development drilling strategy to increase production, revenue and reserves.
  • Review and assess options for asset acquisitions in the region.

Activities in FY2021

  • Trading Halt and Suspension – On 13 January 2021 Whitebark requested a trading halt be placed on its securities pending an announcement to the market regarding the outcome of a review of Whitebark’s investment in its wholly owned subsidiary Salt Bush Energy Ltd, which is the owner and operator of the group’s Wizard Lake oil and gas project.
  • Salt Bush Energy Ltd (SBE) filed a Notice of Intention to Make a Proposal (“Notice of Intention”) pursuant to Subsection 50.4(1) of the Canadian Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3) (the “BIA”). A Notice of Intention is the first stage of a restructuring process under the BIA with the objective of permitting SBE to pursue a restructuring of its financial affairs.
  • WBE was the largest SBE creditor, representing approximately 83.5% of the total SBE creditors. WBE via a Canadian subsidiary “Iron Bark Energy” (IBE) submitted a bid for the Wizard Lake asset which was successful. WBE gained effective control of the Wizard Lake oil and gas project via SBE using a reverse vesting order mechanism (“RVO”) on 19 May 2021. The RVO process meant that IBE was not used to purchase the asset and it stayed resident in SBE.
  • New Directors and Officers were appointed to WBE.
  • Full details of the restructuring process are available in the Half-Year Financial Statements.
  • Minimised costs across the group.
  • Reviewed Wizard Lake oilfield reserves base and immediate development options.

Activities in FY2020

  • Acquisition of 100% of Wizard Lake Oil Field – acquisition of Point Loma assets and working interest in Wizard lake Oil Field was effective June 8 2020.

Activities in FY2019

  • Acquisition of 100% of Wizard Lake Oil Field – 18 December 2019. (At 30 March 2020, ownership of the field is 60%. Any further increase has been deferred.)
  • Two development wells in Wizard Lake Rex oil pool. First Development Well Rex-2 – Completed and successful, 6 September 2019. Rex-3 Completed and successful 9 December 2019.
  • Wizard Lake Facility Construction and tie-in of Discovery Well Rex-1 – Completed 5 June 2019.
  • Wizard Lake Facility Upgrade and Gas Pipeline Construction – Completed 23 December 2019.
  • Additional Land Acquisitions over Wizard Lake Oil Field.

Activities Since Candian Entry in July 2017

  • Wizard Lake Discovery Well successfully completed – 24 December 2018.
  • Entry into Wizard Lake area for Rex Oil Play – 1 October 2018.
  • 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.
  • Nine well workovers in existing producing areas.
  • 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.

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 a Canadian based explorer/producer for an investment of CAD$4.2 million.  The acquisition included 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.