Whitebark Energy Increasing Rex-1 Well Daily Flow Rate

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THE BOWSER: Whitebark Energy (ASX: WBE) provided an update on the Wizard Lake development and the company’s Rex-1 well on the Wizard Lake oil field in Alberta Canada that was placed on production on 5 June 2019.

Whitebark Energy’s Wizard Lake Rex oil discovery well has been producing for ten days and the company said it was continuing to clean up with increasing oil rates.

Current production after ten days is estimated at 275barrels of oil per day and production is increasing as the pump speed is optimized and the well continues to clean up.

Whitebark indicated that its Rex-2 well remains on schedule to be spud in late July with its working interest in this well at 40per cent, increasing to 50 per cent for Rex-3.

The company expects the Rex-1 well will continue to be optimized to obtain a stabilised initial flow rate.

The API Gravity of the oil is 18.5 and it is being sold as a medium grade crude at approximately C$58 per barrel.

Whitebark is receiving 100 per cent of the net income from the well until after payout of the facility and well workover costs of approximately C$750,000.

“The Rex-1 well has been cleaning up nicely and, consistent with our pre-production expectations, daily production has approached the levels we saw in the completion testing and is continuing to increase,” Whitebark Energy managing director David Messina said in the company’s announcement to the Australian Securities Exchange.

“This validates the initial testing results and puts us in a good position for a quick payback, thereby supporting the investment case for the next Rex wells.

“The success at Rex-1 has increased our confidence around the broader Wizard Lake development and we have taken the opportunity to secure additional ground that will increase our inventory of future well locations to at least 18 wells.”

 

Email: info@whitebarkenergy.com

Website: www.whitebarkenergy.com

 

Winchester Energy to Spud New Well at Mustang Prospect

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THE ROADHOUSE BOWSER: Winchester Energy (ASX: WEL) is set to spud a step-out well in July at the company’s Mustang prospect, located in the Permian Basin of Texas, USA.

Winchester Energy explained the step-out well is to spud 420 metres from the previous Mustang Prospect well White Hat 20#3, which returned initial production (IP) of 306 barrels of oil per day (bopd) and continues to produce consistently.

The new well, White Hat 20#4, is a development well on the newly discovered Mustang Oil Field and is designed as a low risk well which, if successful, will further increase Winchester’s net oil production.

Winchester is planning a drilling program to develop the central lobe of the Mustang prospect that will include approximately 15 well locations.

The Mustang prospect has a Prospective Resource target best estimate P50 of 1.43 million bbls recoverable and a high estimate P10 of 3.76 million bbls recoverable from the Strawn Sand.

“The impending spud of White Hat 20#4 builds on the success of the White Hat 20#3 which returned exceptional flow rates of 306 barrels of oil per day,” Winchester Energy managing director Neville Henry said in the company’s announcement to the Australian Securities Exchange.

“White Hat 20#4 represents a low risk opportunity to further increase oil production and also increased confidence in the newly discovered Mustang Oil Field.

“We hope to extend the play further to the north and south and expect a series of large basin-floor sand lobes to occur within the Mustang area.

“The company intends to execute its Mustang development plan which focusses on relatively low risk locations initially stepping out from White Hat 20#3.

“This should see Winchester steadily expand its oil production and cash flow and with the El Dorado and Spitfire prospects representing yet more genuine upside for the company.”

 

Email: admin@winchesterenrgyltd.com

Website: www.winchesterenergyltd.com