Acquisition Approved

Adds 450boe/d and 4.1 million boe* to JV reserves

ASX Announcement 21 March 2018

Highlights:

• Acquiring oil and gas assets producing 450 boe/d in its existing area of focus in Central Alberta for the gross amount of A$1.9m1(30% working interest for Whitebark).
• Adds 135 boe/d net to Whitebark, 30% oil and NGL’s and 70% natural gas.
• Dec 31 2017 1P Reserves Gross 1.5 mmboe, 2P Reserves gross 4.1 mmboe*.
• Acquisition funded from existing cash reserves, circa A$350,000 net to Whitebark after adjustments.
• Approximately 26,500 gross acres of land, including 1100 acres with Duvernay rights.
• Identified drilling locations with multizone opportunities

Whitebark Energy Ltd (ASX: WBE) (“Whitebark” or “the Company”) is pleased to announce that the first acquisition of 2018 for the Point Loma JV (PLJV) has been approved by the Alberta Courts (ref. ASX release March 5th  2017).

The acquired oil and gas assets increase the PLJV’s current daily production by over 30%.

Comprising approximately 26,500 gross acres of land and associated facilities, the area of the acquisition (designated as Gilby area) is adjacent to the PLJV’s existing landholdings (Figure 1) and is currently producing approximately 450 boe/d with 30% being oil and NGLs.

The assets include significant upside potential with booked Proved and Probable undeveloped reserves as well as numerous exploration locations with multi-zone potential across the Mannville, Cardium and Duvernay zones.

“Over the last nine months we have demonstrated we have the capability to identify and execute value adding transactions and we remain focussed on growing both production and reserves in Canada as long as the acquisition metrics remain attractive.” said Whitebark Managing Director, David Messina.

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Reserves Update – 184% increase in 2P Reserves 26 March 2018 

Highlights

• Whitebark net reserves as at 31 December 2017 increase more than 32% since 30 June 2017: 

o 1P (proved) reserves increased by 34% to 875 mboe

                   o 2P (proved plus probable) reserves increased 32% to 1,113 mboe 

• Whitebark proforma net reserves including post period Gilby acquisition increase by more than 104% since 30 June 2017: 

o 1P reserves up 104% to 1,338 mboe

 o 2P reserves up 184% to 2,360 mboe

Whitebark Energy Ltd (ASX: WBE) (“Whitebark” or “the Company”) is pleased to provide an update on its reserve position for its Point Loma Joint Venture (PLJV) in Canada as at 31 December 2017, independently assessed by McDaniels and Associates (McDaniels).

 The reserves update to 31 December 2017 represent a 32% and-34% increase in 1P and 2P reserves to 875mboe and 1,113mboe respectively.  When the reserves from the recently acquired Gilby Project are added, the Company’s 1P and 2P reserves more than doubled when compared to 30 June 2017 (Figure 1). 

 Whitebark Energy Managing Director David Messina said: “Growing reserves and production has been, and remains, a strategic focus for Whitebark, and I am pleased with the progress we made in 2017.  An increase of almost three times our 2P reserves in six months provides future cashflow opportunity, strengthens our balance sheet and places us in a strong position for further growth in 2018.

” Table 1 shows the estimated net reserves to Whitebark as at December 31, 2017, based on the McDaniel reserve estimates of Dec 31 2017 PLJV properties (WBE 20%) plus Sproule reserve estimates of the Gilby properties (WBE 30%)- refer Gilby announcement 21st March 2018.  

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Condensed consolidated interim financial report 

for the six months ended 31 December 2017

ASX Announcement 13 March 2018

Review of Operations

Point Loma JV, Canada (WBE 20% WI)

H1 2017/2018

In late May 2017 Whitebark completed the acquisition of a 20% interest in the Alberta, Canada oil and gas assets of Point Loma Resources Ltd and formed the Point Loma JV. In the first half of his financial year the PLJV made three asset acquisitions in its core Paddle River area, which is now 100% owned by the PLJV (refer to Figure 1). This enables the PLJV to add significantly to production by reactivating stranded wells, drilling and bringing on new wells and undertaking well workovers allowing the PLJV to optimise field performance without the requirement to seek third party approvals (Refer ASX release dated 9 November 2017).

The first acquisition included two horizontal wells and the associated 640 acre section and was finalised prior to calendar year end allowing field operations to commence. The JV reentered the 12-4 well which intersected the Ostracod pool in an updip position but had never been produced. The well is currently yielding approximately 100boe/d. The JV is also exploring the re-activation or re-entry of the second well purchased. Two additional opportunities for horizontal drilling on the land acquired are also being considered.

The second acquisition, to acquire nearby associated residual interests for C$325,000 (gross), added 100,000 barrels of oil to reserves as well as control of surface facilities. The third acquisition comprised the purchase of an adjacent, undrilled section (640 acres) for C$50,000.

The 1-32 horizontal development well was drilled during November into the Ostracod A pool. As expected, the well encountered oil shows. The JV is planning to sidetrack the well into the identified oil pay zone (Refer ASX release dated 11 October 2017).

5-31 Nordegg Recompletion – West Cove

The 5-31 Nordegg well in the West Cove area was placed on production in October 2017 with initial productionbetween 100-160boe/d. It should be noted that this production is only from a short lateral intersecting the upper Nordegg. It is expected that longer horizontal laterals would produce at higher rates. The well pad is configured for two additional wells, which would produce through the existing pipeline infrastructure enhancing the economics of future wells (Refer ASX release dated 24 October 2017).

In addition to the Nordegg pool, the area has an underlying Banff oil target. 3D seismic is currently being acquired to further delineate the Nordegg pool and assist in evaluating the Banff and other deeper targets. A further 5,760 acres of leases over surrounding acreage were acquired to secure the Nordegg and Banff potential

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Quarterly Activity Statement 30th January 2018

Summary Whitebark Energy Ltd is pleased to report a robust second quarter with the average daily production for December of approximately 275 boe/d NET to WBE from its Canadian JV (up from 150boe/d), confirmation of its Xanadu oil discovery in the Perth Basin and $3m cash to fund its active work program and acquisition strategy

Highlights

 Canadian Operations – Point Loma JV (20% WI)

 • WBE Net production from Point Loma JV (“PLJV”) peaked at 300 boe/d during December finishing the month with an average daily production of 275 boe/d. 

• Paddle River Area  o 5-31 well recompletion placed on production in October with initial production between 100 and 160 boe/d with the average daily production for the quarter of 70 boe/d. o Acquired 12-4 well placed on production in the second half of October with current production rate of approximately 100boe/d (constrained). o 1-32 Ostracod well drilled with strong shows: over 2000 gas units and visible oil staining. Well sidetrack is planned to increase horizontal lateral section. o JV secures 100% of Ostracod oil pool via acquisitions.

 • Thorsby Area o Pipeline completed to tie in 11-18 Glauconite well to facilities with production commenced at over 1mmcfd (167boe/d). o 9-18 Sparky well drilled and stimulated with cleanup testing through 18-59 pipeline.  • Thornbury Area  o Gas well reactivation project commenced in December to unlock approximately gross 1.7 mmcf/d from previously producing wells. 

• Leaman Area o LOI executed with Tidewater Paddle River Gas Plant to process gas through its 60mmcf/d deep cut facility.  As wells are brought back on line over 6-9 months an increase in gross production of approximately 2mmcfd is expected. 

• Twelve sections (7,680 acres) of petroleum and natural gas (P&NG) leases and licences acquired adding 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 • Data review has identified the Duvernay Oil Shale play in 16,524 acres of JV land.

Xanadu Oil Discovery – Norwest JV (15%) • Xanadu Discovery Report lodged with DMIRS on 20 December 2017 • Oil analysis results confirms API oil gravity of 34.7o, no H2S and extremely low levels of CO2 • Approvals for Xanadu-1 sidetrack received  • Approvals documentation for proposed 3D seismic survey submitted

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