Whitebark Energy Ltd (ASX: WBE) (“Whitebark” or “the Company”) is pleased to provide an update to shareholders with regards to its Canadian activities.
Point Loma JV (PLJV), Canada (WBE 20% WI)
Following the drilling of two wells and the reactivation of two stranded wells, Whitebark net production has increased to 300boe/d, up approximately 60% since the acquisition. The wells are expected to stabilise over the coming weeks and will provide key information in relation to adjacent drilling opportunities.
Construction work is expected to commence in January to reconnect approximately 2.0 mmcf/d gross to the PLJV of natural gas into JV operated facilities. Whitebark’s Managing Director, David Messina, said “We are very happy to report a 60% increase in production from the work program we undertook in Q3 2017. Further increases will occur in the coming weeks as we unlock additional stranded production”
Perth Basin – WA – Xanadu Oil Discovery post well analysis continues.
Canadian Operations Update: o 5-31 well re-completion placed on production on 3rd October
9-18 Sparky well drilled and will be stimulated this week, with production expected in early November;
Initial 1-32 Ostracod well drilled with strong shows: over 2000 gas units and visible oil staining, further activity to follow;
Twelve sections (7,680 acres) of petroleum and natural gas (P&NG) leases and licences recently acquired which will enable development of significant Mannville, Nordegg and Banff oil targets in 2018;
18 additional drilling opportunities added to inventory as a result of current drilling programs and land acquisitions;
Thornbury development plan filed to unlock approximately 2mmcf/day of previously producing fields; and
Paddle River acquisition to be placed on production in the second half of October
Producer and explorer Whitebark Energy Ltd (ASX: WBE) (“Whitebark” or “the Company”) has completed the drilling portion of its recent work program. This involved the drilling of three new wells, two workovers and strategic land acquisitions in Canada. Initial production from this activity has commenced and over the quarter, additional production will be added.
Xanadu Oil Discovery,WA (WBE 15% WI)
While the Joint Venture is carrying out evaluation of the Xanadu-1 discovery, planning work has commenced on various scenarios including the acquisition of seismic and the drilling of development/appraisal wells over the discovery. Once all the information is available, the Joint Venture will determine the optimum means to appraise the oil discovery.
Point Loma JV, Canada (WBE 20% WI) 5-31 Nordegg Recompletion – West Cove
The 5-31 Nordegg well was placed on production 3rd October 2017 and is currently producing between 100-200boe/day and expected to stabilise as the well cleans up. This production, from a short lateral intersecting the upper Nordegg, is an excellent test of concept for future longer horizontal wells intersecting the zone of interest. The well pad is configured for two additional wells, which would produce through the existing pipeline infrastructure enhancing the economics of future wells.
Logs run over a 330m section of the Xanadu well confirm reservoir quality sand intervals throughout the Irwin River Coal Measures (IRCM) with porosities ranging 15% to 16%.
Oil was obtained via a testing tool from 4.6m of net pay in the top ‘A’ sand, one of three discrete sand intervals (A, B, C) at top of IRCM.
Analysis of oil samples obtained from Xanadu-1 expected to substantiate Cliff Head analogue with oil assay results expected by end of week.
Norwest Energy to lodge Discovery Notice with Minister of Mines, Industry Regulation and Safety.
The Joint Venture will now plan for a lateral well through the oil column.
We are very excited that we have proven movable oil and can subsequently confirm Xanadu well as an oil discovery. We look forward to working with the JV partners to determine the best way to monetise the field.” – David Messina, Managing Director, WBE.
Xanadu-1 is a conventional oil well located in TP/15, an offshore permit located in WA state waters, approximately 1.3km from the coastline. Xanadu-1 is a deviated well, drilled from an onshore surface location situated approximately 40km south of the township of Dongara, Western Australia.
The Xanadu-1 well was spud on 4th September 2017, and reached a total depth of 2035mMDRT on Sunday 17th September, when it was confirmed that the Xanadu-1 well had intersected hydrocarbon bearing intervals as demonstrated by elevated gas readings, oil shows, fluorescence and cut-fluorescence whilst drilling.
Whitebark Energy Limited (“Whitebark” or “the Company”) is pleased to announce that firm placement commitments have been received from professional and sophisticated investors to raise approximately A$1,850,000 before costs.
The placement of circa 154 million ordinary fully paid shares at A$0.012 (1.2 cents) will be completed pursuant to the Company’s 15% placement capacity under ASX Listing Rule 7.1 (70,640,234 shares) and the additional 10% placement capacity under Listing Rule 7.1A (83,526,433 shares).
Funds raised pursuant to the share placement will be used to fund the Company’s acquisition and drilling plans and for general working capital. DJ Carmichael Pty Limited acted as Lead Manager to the issue. Managing Director David Messina commented “We are very happy with the robust response from the market.
We take this as an endorsement of our current expansion strategy and look forward to providing regular updates to the market as we continue to roll out our strategy in the coming months.”