Whitebark Energy (ASX: WBE) announced the completion of its drilling program which led to an oil discovery at its 15%-owned Xanadu licence in Western Australia and new production at its 20%-owned Point Loma project in Canada.
The Xanadu prospect is owned in conjunction with Norwest Energy, Triangle Energy Group and 3C Group. Whitebark Energy funded 20% of the drilling program that led to the discovery in return for a 15% stake.
Xanadu is situated offshore in the Perth Basin and has an estimated resource of 160MMbbls
Whitebark Energy’s flagship project is Point Loma in Canada. The project is operated via a joint venture between Whitebark Energy and TSXV-listed Point Loma Resources. Point Loma encompasses more than 210,000 acres and is prospective for oil and gas.
“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 quarter,” Whitebark Energy managing director David Messina said.
Well 5-31, part of the Point Loma project, started producing on 3rd October. Initial output is estimated between 100bboe to 200bboe per day.
The recently completed program also included drilling and casing the 9-18 horizontal Sparky well in Thorsby, Canada. Operations are targeted to begin in mid-November.
Additionally, due to the number of remote wells in the Thornbury area, Whitebark Energy and Point Loma Resources filed a development application to construct short connector pipelines.
Construction of the connector pipelines is expected to begin in the first three months of 2018.
Meanwhile, at the company’s 1-32 Ostracod well in Paddle River, Canada, drilling encountered oil shows over a 1,000-metre horizontal section.
As well as the drilling program, the Point Loma joint venture also acquired 5,760 acres of leases surrounding 5-31 to target potential reserves and boost production at the site.
Whitebark Energy’s shares were up more than 16% in mid-afternoon trade.