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Whitebark Energy to increase interest to 50% at Wizard Lake development

The company can fully fund the Rex-2 and Rex-3 wells to increase its interest to 50%.

map of wizard lake project
The successful Rex-1 well is on target to commence production in early June 2019

Whitebark Energy Ltd (ASX:WBE) has reached an agreement with its Canadian partner to increase its interest to 50% at the Wizard Lake oil development.

The increase to 50% from 30% will take place after the completion of a Whitebark-funded two well drilling program of Rex-2 and Rex-3.

Rex-2 is expected to spud in July/August 2019 and Whitebark will receive 75% of well revenues until payout of its capital investment, estimated at C$2.3 million.

After payback of Rex-2, Whitebark will increase its interest to 40% and then can elect to proceed with Rex-3 to increase its interest to 50% of the entire field and surrounding area.

READ: Whitebark Energy begins work on production facilities at Wizard Lake joint oil project

Whitebark Energy’s managing director David Messina said: “The Wizard Lake Oil Development presents a huge opportunity for Whitebark and we are committed to realise the substantial value that the discovery offers.

“We have been flexible with our funding program over the past six months and through a combination of asset sales and strategic equity raisings, we have positioned Whitebark to pursue a more aggressive growth program.

“The Rex-1 well remains on track to commence oil production in early June 2019 as completion of the site facilities draws near, and we can now start to focus on drilling Rex-2.”

READ: Whitebark Energy secures $1.95 million as Grand Gulf Energy becomes substantial holder

Earlier this month, Whitebark completed a $1.95 million capital faising via the issue of 390 million shares priced at 0.5 cents each to Grand Gulf Energy Ltd (ASX:GGE) for a 19.87% interest.

Quick facts: Whitebark Energy Ltd

Price: 0.003 AUD

Market: ASX
Market Cap: $12.11 m

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