Whitebark Energy encounters oil shows at Wizard Lake in Canada

Whitebark Energy ASX WBE Wizard Lake Rex-2 well oil
Preparations are being made for a fracking program at the Wizard Lake Rex-2 well in Alberta after drilling encounters “excellent” reservoir quality.

Oil and gas company Whitebark Energy (ASX: WBE) has announced the completion of drilling at the Rex-2 appraisal well in the Wizard Lake oilfield in Alberta, Canada, with the well encountering “excellent” reservoir quality and higher porosity levels than the previous discovery well.

The Rex-2 well was drilled to a total depth of 3,033m in eight drilling days by Canadian operator Point Loma Resources.

According to joint venture partner Whitebark, free oil was evident on the shakers throughout drilling of the section with initial indications suggesting “excellent” oil shows and elevated porosity levels of up to 21% recorded through the sand.

This is higher than the 15-18% porosity levels observed at the Rex-1 discovery well, drilled in late 2018.

Whitebark said the drilling contractor is currently conditioning the hole in preparation for a 35-stage fracture stimulation program in the Rex reservoir zone in a horizontal section between 1,572-3,033m measured depth.

The frack program is anticipated to begin within the next seven days.

The work is expected to be completed within two weeks and will be followed by normal clean-up flows. The well will then be brought online after a short testing period, Whitebark reported.

According to Whitebark managing director David Messina, the improved reservoir quality and oil encountered during the drilling of Rex-2 gives the company “enormous confidence” in its future program.

Rex oil discovery

The first Wizard Lake Rex horizontal well was spudded in November 2018 and initial flow testing recorded rates of more than 300 barrels of oil per day.

In early June 2019, production facilities and a pipeline were completed and Rex-1 began pumping fluids.

Whitebark currently holds a 30% working interest in the Wizard Lake oil development, but its stake is expected to increase to 50% following the completion of a two-well drilling program.

Rex-2 was the first of the two wells under this agreement. To complete its earn-in, Whitebark must elect to proceed with a second well, Rex-2, prior to 31 December 2019.

Danica has extensive experience writing and editing business news in the Oceanic and Southeast Asian regions. She has written across a range of industries including oil and gas, mining, energy, science and research, retail and travel. Danica has covered small and large cap companies listed on the Australian, Singapore, Hong Kong, Indian, London and Toronto exchanges.