Whitebark Energy has finished the drilling portion of its recent work program, which 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.
• Perth Basin – WA – Xanadu Oil Discovery post well analysis continues.
• Canadian Operations Update:
– 5-31 well recompletion 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 t- 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 t- inventory as a result of current drilling programs and land acquisitions;
– Thornbury development plan filed t- unlock approximately 2mmcf/day of previously producing fields; and
– Paddle River acquisition t- be placed on production in the second half of October
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 t- 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 t- 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 tw- additional wells, which would produce through the existing pipeline infrastructure enhancing the economics of future wells.
The Joint Venture is currently evaluating the potential of using 3D seismic t- further delineate the pool and assist in evaluating the Banff oil target underlying the Nordegg pool. Nine sections (5,760 acres) of P&NG leases and licences were recently acquired t- secure the surrounding acreage on the Banff prospect.
9-18 Sparky Well – Thorsby
The 9-18 horizontal Sparky well was drilled and cased and a stimulation is planned for mid-October. Once completed it is anticipated that the Sparky well will be pipeline connected on the same surface lease as the previously drilled and tested Glauconite well. The tw- wells will flow t- an area operator’s facility along a combined emulsion line. These wells are expected t- provide a base for an additional four t- six horizontal development drilling opportunities on existing P&NG leases. Production is anticipated t- commence in early November 2017.
1-32 Ostracod Well – Paddle River The 1-32 horizontal development well was drilled int- the Ostracod A pool, which is currently producing. As expected, the well encountered oil shows over a horizontal section of approximately 1000 metres.
During casing operations, the well encountered tight sections that ultimately required the lateral t- be plugged back and cemented off up t- 1300 metres depth. The JV is now planning t- side track t- re-drill the identified oil pay zone in November.
In addition, the previously announced, acquired horizontal oil well, will be transferred and placed on production in the second half of October. The well was drilled, completed and tied-in during 2014 but not placed on production due t- area facility constraints. It is expected the well should perform at the upper range of the horizontal wells (200-400boe/d) drilled int- the Ostracod A pool t- date. In addition, the JV will explore re-activation or re-entry of the second well purchased in the transaction for further production additions. Tw- additional potential horizontal drilling opportunities are als- supported on the acquired land.
Thornbury Development
A development plan has been filed t- undertake construction of short connector pipelines t- tie-in a number of stranded wells in the Thornbury area. Construction work is expect t- occur during the first quarter of 2018. Capital investment of approximately CAD$360,000 (gross) is required t- reconnect approximately 2.0 mmcf/d of natural gas int- JV operated facilities.
Whitebark’s Managing Director, David Messina, said “Following an active work program over the last month we have confirmed an oil discovery at Xanadu and the combined results of our Canadian activities will result in an increase in production during the current quarter.”