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.”