Quarterly Activity Statement
Whitebark Energy Ltd (ASX : WBE) is pleased to report a 26% increase in production for the final quarter of the financial year to over 28,000 boe. Activity during the quarter included the Gilby acquisition1 adding 450 boe/d gross, completion of 3D seismic identifying up to 40 million boe (8.4mmboe net to WBE) in place, and heightened activity in the Duvernay shale play that saw land prices increase in the region. In WA, the control of the Warro field has returned to WBE in full, and planning continues for CY2018 3D seismic survey to define the exciting Xanadu oil discovery in the Perth Basin.
Canadian Operations – Point Loma JV (PLJV) (20% WI)
Warro Gas Field (100%)
Xanadu Oil Discovery – TP/15 (15%)
Canadian Operations – Point Loma JV (20% WI)
On 2nd May 2018, the Company announced the final payment of CAN$143,965.81 for the Gilby acquisition on 30th April, taking WBE’s total cost of the acquisition to CAN$333,965.81 for a 30% share of the asset. In addition to increasing production by approximately 60% (~135 boe/d net to WBE, 35% oil and NGL’s and 65% natural gas) (Figure 1), the Gilby asset, effective from 1 November 2017, more than doubled the Company’s 1P and 2P reserves when compared to 30 June 2017 (Figure 2).
Whitebark Takes Control of Warro
Flexibility to progress up to 11.6 tcf1 field
Whitebark Energy (ASX : WBE) is pleased to announce the return to full ownership of the Warro Gas Discovery, 200km North East of Perth.
|The Warro partnership between Whitebark (and its predecessors and subsidiaries) and Alcoa has spanned a decade, including the drilling of four wells and the acquisition of 90km2 of 3D seismic.|
“Alcoa has been an excellent partner during this period and the advancement of the Warro project would not have occurred without their ongoing support during the period of the Joint Venture,” said Whitebark Managing Director David Messina.
As part of the transfer Alcoa has agreed to provide future funding to cover its share of plug and abandonment liabilities in the event any of the wells are not used in future development scenarios.
RL7, on which Warro sits, is currently in suspension pending the completion of the WA Government fracking inquiry. The holding costs for the lease are modest and all near term work commitments have been met, giving Whitebark significant time to determine how the asset may be advanced to maximise its future potential.
“The impact of the moratorium on the project has significantly hampered the Joint Venture’s ability to continue with development activities,” Mr Messina said.
“As the industry lies dormant awaiting the official findings and recommendations, the decision has been made to relinquish the permits outside of the Warro core field resources, namely EP321 and RL-6 and concentrate on RL7.”
Warro Project Background
The Warro field lies 200km north of Perth in the Perth Basin and is one of the largest undeveloped onshore gas fields in Australia. The Warro reservoir section is about 3,750m below surface and has a thickness of approximately 500m. The gas is held within low porosity and low permeability Jurassic sandstones. The field is located 31km east of both the Dampier-to-Bunbury Natural Gas Pipeline and the Dongara-to-Perth Parmelia Pipeline.
In 2008, Latent Petroleum Pty Ltd (now a wholly owned subsidiary of WBE) entered into $100m partnership with Alcoa of Australia to fund the exploration of the Warro gas field.
The completion of wells Warro-3 to Warro-6 and subsequent testing have provided valuable information and insight of the Warro field. Results of these wells and the 3D seismic continue to be analysed to determine the best way forward for the project and proving the field commercial.
|Latent Petroleum, as operator of the Warro Project, remains confident that the results of the moratorium will find in favour of the fracture stimulation process under a strong regulatory regime.|
Latent is also very proud of the company’s implementation of environmental monitoring from the inception of our activities in 2008 and continued to expand this over the next ten years. The company is confident that many of the expected guidelines are already in place at Warro.
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