Whitebark Energy to begin flow back at Rex-3 following frac completion

Whitebark Energy ASX WBE Wizard Lake Rex-3 frac oil
Whitebark Energy plans to drill another four wells at the Rex prospect over 2020.

Whitebark Energy (ASX: WBE) has completed fracture stimulation of the Rex-3 well in Canada’s Wizard Lake oil field, with flow back to begin imminently.

The company’s Canadian subsidiary Salt Bush Energy completed the 46 stage frac program over 30 hours.

During the program 1,300 tonnes of proppant was placed into the Rex formation.

With fracking complete, Whitebark will begin the next phase of the program including flow back and testing within the next 48 hours.

Similar to other operators in the field, Whitebark noted it would use a high-volume, submersible pump to help recover frac fluids and optimise oil production.

Via its subsidiary, Whitebark has a 40% working interest in Rex-3 and upon completion of the well, Whitebark’s interest will grow to 50%.

Wizard Lake oil field

Today’s news follows Whitebark’s announcement in September that the Rex-2 well was outperforming the Rex-1 well in the same field.

During the initial (constrained) peak production, Rex-2 was generating 865boepd, which comprised 540bopd and 2 million cubic feet per day of gas.

Rex-2 was drilled to a vertical depth of 1,572m and had a lateral length of 1,500m.

The well cost about C$2.2 million and was completed in 30 hours via a 35 stage frac program.

In comparison, at peak production Rex-1 generated 340boepd.

Without including Rex-2, Whitebark’s gross production in early November was 1,500boepd and net 400boepd (constrained).

Reserves stood at 1P 787Mboe and 2P 1,398Mboe.

Whitebark anticipates the Rex prospect at Wizard Lake could potentially host more than 20 wells.

As Whitebark moves into 2020, the company plans to triple its production with growth in reserves to come through development, exploration and acquisitions.

To fund next year’s growth and infrastructure capacity upgrade, Whitebark completed a $4.6 million placement in October.

During 2020, Whitebark has scheduled Rex-4 for the first quarter, followed by Rex-5, Rex-6 and Rex-7 for the remainder of the calendar year.

By early afternoon trade, Whitebark’s share price was up 16.67% to $0.014.